Leaves, time off and wage changes
If your work situation changes because of COVID-19, your pension could be affected. Learn about your options if you take a leave, have your hours reduced, are temporarily laid off or receive temporary pandemic pay.
Note: all leaves are subject to Income Tax Act limits. Read Taking time off work and buying service for more information.
Employment Standards Act leaves
If you take an unpaid leave, you have the option of buying service for the period of your absence. Leaves taken under the Employment Standards Act (ESA), including the new COVID-19-related leave, are shared-cost leaves. If you choose to buy service for such a leave, both you and your employer will pay a portion of the purchase cost.
A leave with full pay doesn’t count as a leave because both you and your employer are still contributing to the plan.
General leave and reduced hours
If you take an unpaid leave approved by your employer that isn’t covered under the ESA, you may be able to buy service for this period—it will be treated as general leave. For general leaves, you’ll be required to pay the full cost of the purchase of service.
You may be eligible to buy the service for the difference between your normal (full-assignment) hours and the hours you actually work.
According to the Canada Revenue Agency, all the following must apply:
- You must have been employed by your employer for at least three years
- You may only purchase a period of reduced pay that occurs after those three years
- You must have been working your normal (full-assignment) hours sometime before your hours were reduced
If you choose to buy this service, it will be treated as a general leave. You’ll be required to pay both your share and your employer’s share of the cost.
If you’re laid off (rather than being on a leave of absence), you won’t be able to buy service for this period.
Temporary pandemic pay
Receiving BC COVID-19 temporary pandemic pay won’t affect your pension.
Because this temporary pandemic pay will be paid as a lump sum, it isn’t considered part of your pensionable salary. Pensionable salary is the portion of your salary used to calculate your pension contributions, highest average salary and purchase-of-service costs.
For more information about BC COVID-19 temporary pandemic pay, contact your employer.