Periods of reduced pay
Find out how to buy service if you worked less than your full assignment for a period of time.
If you worked less than your full assignment for a period of time, you may be able to buy the difference between your normal, full assignment and the amount you actually worked.
To buy service for a period of reduced pay, you must have:
- Been employed by your employer for three years before the period of reduced pay
- Worked at your full assignment at some point before the period of reduced pay
- Continued working for the employer during the period of reduced pay
Note: In response to the COVID-19 pandemic, the federal government has temporarily suspended this “three-year work” requirement. Plan members who have worked for their employer for less than 36 months can now make a purchase of service for a period of reduced pay that occurred in 2020 and/or 2021. This amendment applies only to the 2020 and 2021 calendar years.
If you qualified for a period of reduced pay under the relaxed eligibility requirements during this time but have since terminated employment or retired, you may still be able to purchase service. Contact the plan for more information.
If you normally work less than 100 per cent full time, you can only buy enough service to bring you up to the amount of your normal full assignment.
- Dan has worked full time for the City of Vancouver for the past 10 years. This year, he and his partner adopted a child, and Dan wants to reduce his hours at work so he can spend time bonding with his new daughter. With his employer’s permission, he reduces his workload to 50 per cent of full time for the next six months. During this time, Dan earns only half his normal salary, which means he makes half his normal pension contributions and earns half his normal pensionable service. At the end of this six-month period of reduced pay, Dan will be eligible to top up his service by buying back the difference between his normal assignment (full time) and the hours he actually worked (50 per cent of full time).
- Muhammad and Brenda have worked for the City of Kelowna for the past seven years. They equally share one full-time equivalent (FTE) job by each regularly working 50 per cent FTE. Muhammad wants to reduce his workload to 30 per cent FTE for a period of three months, and later buy up to his normal 50 per cent FTE. If Brenda also goes on a period of reduced pay (i.e., works less than 50 per cent FTE) and then later applies to top up her individual service, she can also buy up to her normal 50 per cent FTE.
Contact your employer if you are interested in buying service for a period of reduced pay.
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