Traditional Past Service Purchases
A traditional past service purchase allows you to increase your HRM Pension Plan benefit by increasing your Credited Service with the Plan. It may also allow you to consolidate your pension benefits with previous employers under the HRM Plan. The cost of purchasing past service will depend on several factors, including your age and earnings level.
What periods of service can you purchase?
- Approved leaves of absence with your employer
- Service with your employer prior to joining the Plan
- Certain periods of employment with other employers
- Prior periods of service under the HRM Pension Plan for which you have received a refund when your employment ended
How can I pay for my service purchase?
- Cash Payment
- RRSP Transfer
- Transfer from another Registered Pension Plan
- Transfer from your HRM Defined Contribution Account
- Payroll Deductions over an extended period of time
It is important to note that while a traditional past service purchase allows you to increase your pension benefit at your time of retirement, it does not permit you to retire earlier. In order to lower your retirement eligibility age you would need to complete a reciprocal transfer, the other option for purchasing service. Visit the Reciprocal Transfer section of our website to determine if you are eligible for this type of transaction.
Obtaining a Cost Estimate
To help you decide if you would like to proceed with the purchase of past service, our office can prepare you an initial cost estimate at no charge. We will provide you with the estimated cost to purchase one year of credited service based on your current age and earnings as well as the estimated increase to your future benefits from the HRM Pension Plan. To obtain a cost estimate, contact our office and we will be happy to assist you.
Once you have reviewed the initial cost estimate, you will need to decide if you would like to proceed with purchasing your past service. If you decide to proceed with the purchase, our office will provide you with a formal Service Purchase package outlining the full cost of the purchase along with any required forms needed to complete the transaction. Note that if you do decide to proceed, there is a fee charged to cover the costs associated with completing the transaction.
There may be tax implications associated with your purchase of past service, including impacts to you RRSP situation. These implications will be outlined in the Service Purchase package provided by our office once you initiate the transaction.
Forms and Links
Service Purchase Request Form – to be completed by you and your previous employer; includes details of your prior period(s) of employment
Electronic Communications Authorization Form – receive your buyback correspondence electronically instead of via mail
T2151 – for transfers from an RPP or a DPSP
T2033 – for transfers from an RRSP, a RRIF, an SPP, or a PRPP