How to buy non-contributory service

Find out how to buy non-contributory service to potentially increase your future pension.

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 Municipal Pension Plan but were not making pension contributions.

For example, this could be when you were on probation or did casual work before joining the pension plan.

Buying non-contributory service increases the service that counts toward your pension. This may increase the monthly pension payment amount you would receive when you retire.

Are you eligible?

You can apply to buy non-contributory service previously worked with an employer that participates in BC's Municipal Pension Plan. You must be an active member in the plan to purchase this service.

You are not eligible to buy non-contributory service if you waived your enrolment in the plan under the enrolment guidelines on or after April 1, 2000.

How much will it cost?

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

  • The number of months of service you want to buy
  • Your current full-time salary
  • The current employee and employer contribution rates

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

You are responsible for paying the entire cost, unless your employer has an agreement to pay a portion of it. Ask your employer if this type of agreement applies to you.

What is the deadline?

You must apply within five years from when you first contributed to the plan or within 30 days of leaving the employer with whom the service occurred, whichever comes first.

What is the process?

  1. Sign in to My Account to use the personalized purchase cost estimator to get an estimate and generate a pre-populated application form or open and save the Purchase of Service application package online
  2. Complete Part A of the form online
  3. Print and sign it
  4. Attach any required documents to the form
  5. Send the completed form and documents to your current employer to complete
    Part B and send the form to the Municipal Pension Plan

When we have processed your application to buy service, we will send you a statement showing:

  • The total cost
  • The payment due date

If your employment records are missing, inaccessible or incomplete, you and your employer can agree to a default pensionable service option. With this option, your employer will certify 50 per cent pensionable service and 100 per cent contributory service on the Purchase of service application form for the period of eligible time you want to purchase.

Talk to your employer for more information about the default option.

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.