How to buy arrears

Find out how to buy arrears if there was a period when you and your employer should have contributed to the plan but didn't.


How to buy enrolment arrears

Enrolment arrears may apply to you if:

  • Your enrolment in the plan was mandatory but you didn’t start contributing when first required to do so
  • Your enrolment was optional and you joined the plan but didn’t start contributing from your date of eligibility
  • Your enrolment in the plan (on or after April 1, 2000) was optional, but you didn’t sign the waiver to opt out of the plan
  • You signed the waiver to opt out of the plan, but then decided to enrol in the plan and did not start contributing on the date you enrolled
  • You were employed by more than one employer that participated in the plan at the same time but did not contribute to the plan through all your employers

How much will it cost?

The cost to buy enrolment arrears is based on:

  • The amount of pensionable service you are buying
  • Your current full-time salary
  • The current employee and employer contribution rates

Complete and submit the Purchase of service application to find out how much it will cost. We will send both you and your employer a statement showing how much you each need to pay.

Your employer must immediately pay its share to the plan. You can decide if you want to pay your share. You have 90 days to pay.

If you do not pay your share, you will get credit for:

  • Half the pensionable service
  • The full contributory service

If you pay your share, you will get credit for:

  • The full pensionable service
  • The full contributory service

The statement we send can help you estimate how much your monthly pension benefit may increase if you purchase the enrolment arrears period.

What is the process?

  1. Complete Part A of the Purchase of service application online
  2. Print and sign the form
  3. Attach any required documents to the form
  4. If the employment arrears period you are buying was worked with a former employer that participated in the plan, send and ask that employer to complete Part C
  5. Send the completed form and documents to your current employer to complete and forward Part B to the plan

When we have processed your application to buy enrolment arrears, we'll send you a statement that shows your cost and the payment due date. We'll also send one to your employer that shows its cost and due date.

What is the deadline?

The payment amount quoted in your statement is guaranteed for 90 days. If you miss the payment deadline, you must reapply to make the purchase within five years of the original statement or within 30 days after your employment ends, whichever is earlier.

What are the payment options?

You must pay the full amount by the due date shown on the statement of cost. You can pay by:

  • Online banking from your personal bank account
  • Cheque, money order or bank draft (payable to Municipal Pension Plan)
  • Transfer from an existing RRSP or locked-in retirement vehicle in your name
  • A combination of the above options

You will only receive a tax receipt if you pay by online banking, cheque, money order or bank draft.

You are responsible for ensuring the correct payment amount reaches the plan by the due date indicated on the statement. If you miss the payment deadline, you must continue to meet eligibility requirements, including the original five-year time limit, and reapply to make the purchase.

How to pay from an existing RRSP or locked-in retirement vehicle

If you wish to pay by transferring funds from an RRSP or locked-in retirement vehicle, your financial institution must make this transfer to the plan on your behalf. You should instruct your financial institution to send the exact amount owed to the plan by the due date. Ensure that your financial institution does not deduct service fees from your purchase of service payment,  as this will result in an incomplete payment.

How to pay through online banking

The following financial institutions are set up for online banking with BC Pension Corporation:

  • BMO
  • CIBC
  • HSBC
  • RBC
  • Scotiabank

To pay an invoice online:

  1. Sign in to your financial institution's online banking service.
  2. Under Add a payee, select BC Pension Corporation.
  3. For your account number, type in your Person ID (PID) number. (You can find your Person ID number on your purchase invoice or statement of cost.)

If you need help making your payment through online banking, contact your financial institution.


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