Guide for plan members

Teachers' Pension Plan is committed to helping you make the most of your pension. This guide is a provincial legislative requirement. Please use the links at right to explore the topics most relevant to you.


Buying service for a leave


You may be able to increase your future pension by buying service for an approved leave of absence.

Buying service for your leave of absence may increase the monthly pension amount you receive when you retire, or get you closer to an unreduced pension.

In most cases, you can buy service for your leave after you return to work. For certain types of leaves (such as maternity, parental/adoption and compassionate care leaves), you can also buy service for your leave by continuing to contribute while you’re away.

Leave of absence with partial pay, top-up or allowance from your employer

During a leave with partial pay, top-up or allowance from your employer, your pension contributions and pensionable service are adjusted. For example, if you receive half your regular pay during a leave, you will be making half your regular pension contributions and accumulating half your regular pensionable service. The amount of service available to buy is the difference between your partial leave and your normal assignment.

Unpaid leave of absence

During an unpaid leave, you do not contribute to the pension plan and you do not accumulate any pensionable or contributory service. However, you may be able to buy service for the time you took off work on an approved leave.


Eligibility for buying service for a leave

You can buy service for an approved leave if you meet the following requirements:

  • You were an active plan member before you took the leave
  • You apply while you are an active member or within 30 days of ending your employment with all plan employers
  • You apply within five years of the end of the leave
  • Buying the leave does not cause you to exceed the limits described below

Limits on buying service for a leave

You can buy service for leaves up to the following maximums:

  • The equivalent of 10 months of pensionable service in any calendar year (or 12 months if you are a 12-month employee).
  • Three years of maternity or parental/adoption leave over your career. If you take off more than three years total for maternity or parental/adoption leaves, you can purchase the portion above the three-year maximum as a general leave.
  • Five years of general leaves over your career.
  • 35 years of total pensionable service before January 1, 2018 (this limit does not apply for pensionable service on and after January 1, 2018).

Restrictions apply if you want to buy a leave of absence for a period when you contributed to a registered pension plan with any other employer. Contact us for more information.


What the cost will be

The cost to buy service for your leave of absence is based on:

  • The number of months of service you want to buy
  • Your current full-time gross monthly pensionable salary (or full-time equivalent, if you work part time)
  • The current employee and employer contribution rates

Your employer will pay its share of an Employment Standards Act (ESA)–approved leave of absence.

For general leaves, you are usually required to pay the whole cost (unless you have a separate agreement with your employer).

Estimating the cost of a lump-sum payment

Sign in to My Account and use the personalized purchase cost estimator to find out how much it may cost to purchase your leave as a lump sum.

Please note: if you are purchasing your leave as a lump sum, you must buy service for the entire leave period (or in annual portions, if the leave is longer than one year).

Estimating the cost of continuous contributions

If you’re planning to make continuous contributions to your pension during an ESA-approved leave, you can estimate your monthly cost by adding together the pension deduction on two biweekly pay stubs.

Additional cost considerations

  • Since your payment cost is based on current salary and contribution rates, buying your service earlier may be less expensive
  • If you are making continuous contributions, your cost may change slightly month to month with regular salary increases

How to transfer service between public sector pension plans


BC’s Teachers’ Pension Plan has transfer agreements with many public sector pension plans in Canada. These agreements allow you to transfer your pensionable and contributory service from your original pension plan to your new employer's pension plan if you meet certain eligibility criteria. The transfer agreements are reciprocal, which means you can transfer service in either direction:

  • From the Teachers' Pension Plan to another pension plan, if you start a job with a new employer that falls under one of these agreements
  • From another pension plan to the Teachers' Pension Plan, if you used to work for an employer that falls under one of these agreements and you are now a Teachers’ Pension Plan member

Things to think about when transferring service

Transferring service may allow you to increase two kinds of service:

  • Pensionable service, which may increase the value of your pension
  • Contributory service, which may allow you to retire earlier with an unreduced pension

However, it’s not always to your financial advantage to transfer service. It may be better to collect two separate pensions, particularly if:

  • The total value of the two separate pensions is more than the value of the single pension after a transfer
  • You can collect a pension earlier under your former plan

There are deadlines for transferring service, so contact your new pension plan as soon as possible to confirm your eligibility.

Other considerations

If you have a former spouse who is entitled to a share of your pension, the pension will need to be divided before any service can be transferred. Contact us for more information.

There may be tax implications associated with transferring service. You may wish to speak with an independent financial adviser before making your final decision about transferring eligible service between plans.


Arrears


A period of arrears refers to a time when you and your employer should have been contributing to BC’s Teachers’ Pension Plan, but weren’t. There are two kinds of arrears: enrolment and payroll.

Enrolment arrears occur when you should have been enrolled in the plan, but were not. Therefore, you were not contributing to the plan.

Payroll arrears occur when you were enrolled in the plan correctly, but your employer did not deduct and forward the required contributions to the plan on your behalf.

When you are enrolled in the plan, you and your employer must both make contributions on your behalf. Your employer is responsible for deducting your contributions from your pay and submitting them to the plan.

You may want to check your pay stub regularly (especially after a leave) to make sure your pension contributions are being deducted. If you aren’t sure whether your employer has made (or is making) contribution payments on your behalf, follow up with your employer.

You, your current employer, your former employer or the pension plan can identify a period of arrears.


Buying non-contributory service


You may be able to increase your future pension by buying non-contributory service for a period when you worked for an employer participating in BC’s Teachers’ Pension Plan but did not make pension contributions.

For example, this could be when you were:

  • Teaching on call
  • Working less than half time for a plan employer before January 1, 1993

Buying non-contributory service increases the service that counts toward your pension. This may increase the monthly pension payment amount you receive when you retire or allow you to apply for an unreduced pension earlier.


Cost for non-contributory service

The cost to buy non-contributory service is based on:

  • The number of months of service you are eligible to buy
  • Your current full-time gross monthly salary (or full-time equivalent, if you work part time)
  • The current employee and employer contribution rates

Sign in to My Account and use the purchase cost estimator to get an estimate of the cost.

Unless you have an agreement with your employer that states otherwise, you are responsible for paying the entire cost.


Disability benefits


If you become totally and permanently disabled before age 61, you may be eligible for a disability benefit from BC’s Teachers' Pension Plan. This pays you a monthly benefit and replaces any termination benefits or retirement pension you would normally receive as a plan member.

Why would you take a disability benefit?

  • If you become disabled before your earliest retirement age (55), you will not be eligible for a regular pension, but you may be eligible for a disability benefit
  • If you become disabled after your earliest retirement age but before you turn 61, a disability benefit may provide you with a higher benefit than a regular pension

Are you eligible?

To be eligible for a disability benefit, you must:

  • Not be eligible for coverage under an approved group disability plan
  • Have at least two years of contributory service
  • Apply by age 61
  • Apply in writing to the plan within two years of the date of your last contribution to the plan
  • End your employment with all plan employers
  • Have a report from both your doctor and a doctor appointed by the plan declaring that you are totally and permanently disabled

You are not eligible for a disability benefit if you have accepted a lump-sum payment to settle a long-term disability claim. If you have accepted a lump-sum payment, you may be entitled to termination benefits or a retirement pension.

If you are age 55 or older, you may be eligible to apply for a regular pension. Contact the plan to discuss your options.

How is a disability benefit calculated?

We calculate disability benefits the same way we calculate regular pensions, except:

  • There is no bridge benefit
  • Disability benefits are never reduced because of your age or years of service

The following rules apply to disability benefits (just like regular pensions):

  • The calculation is based on your years of pensionable service and the average of your five highest years of salary
  • You are able to choose from the same pension options and guarantees
  • The amount of your disability benefit may increase annually to reflect changes in the cost of living (but this is not guaranteed)
  • Depending on the pension option you selected when you applied for your disability benefit, your spouse or beneficiary(ies) may be eligible to receive a benefit upon your death
  • The disability benefit may provide you with access to medical, extended health and dental benefits

What happens if you are no longer disabled?

If you are no longer disabled, we will stop paying you your disability benefit.

If you return to work for an employer participating in the plan, you and your employer will resume making pension contributions to the plan. When you retire, you will be eligible for a regular pension.

If you do not return to work, or you return to work for an employer that does not participate in the plan, contact the plan to learn about your pension options.

If you are eligible for a regular pension or termination benefit, we will calculate it using your total years of service:

  • You will not receive service for the period you were receiving the disability benefit
  • There is no adjustment for the disability benefit that was already paid

The rules for calculating disability benefits are complex. Contact the plan for information or to discuss your individual situation.


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