Did you know?


Did you know that the Public Service Pension Plan is the largest pension plan in Newfoundland and Labrador with over 55,000 members?

Purchasing of Service

Can I purchase past service?

Yes. Under the Plan you may purchase prior service, provided the service is pensionable as defined by the Public Service Pensions Act, 1991 (the Act), and if you are an employee as defined by the Act when electing to purchase. Examples of past service include:

  • Worked service for which contributions were paid and subsequently refunded;
  • Worked service with an employer under any other plan with whom the Plan has a portability agreement, and where contributions were refunded;
  • Worked service with an employer under any other plan, with whom the Plan has a portability agreement, and where contributions were not paid but the service would be recognized under the former plan today;
  • Prior full-time contractual service;
  • Authorized leaves of absence
    • An application to purchase unpaid leave must be received by Provident10 within 90 days of returning from the leave for the cost to be based on the member contributions that would have been paid had the leave not occurred. If the application is received after 90 days, the cost is based on actuarial values and could be significantly greater.

There are other periods of service which may be purchased. Please note that most purchase costs are calculated using actuarial values. A significant factor in determining an actuarial value is whether the purchase will enable you to retire earlier (i.e., the cost recognizes that if a plan member retires earlier, the benefit will be paid out for a longer period). Other factors in determining cost are the age of the plan member and interest rates.

For further information on the purchase of prior service, including payment arrangements, please contact your employer. All requests to purchase prior service must come to Provident10 via your employer. Requests will not be accepted directly from plan members. An application to purchase unpaid leave must be received by Provident10 within 90 days of returning from the leave for the cost to be based on the member contributions that would have been paid had the leave not occurred. If we receive the application after 90 days, the cost is based on actuarial values and could be significantly greater. Extraordinary circumstances will be dealt with on an individual basis.

Please note that if you have an outstanding balance remaining on a purchase of service contract at the date that you leave the Plan, your benefits cannot be processed until the outstanding balance is paid in full. If you do not wish to pay the outstanding balance, the amount of service that has been credited must be re-determined based on the amounts paid. Both the pension amount and the date that you are eligible to receive a pension will be re-calculated based on the reduced amount of service. Please contact Provident10 to discuss this matter. 

Frequently Used Resources


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Calculator

Interested in learning more about the value of your pension and how it will mature over time? Our calculator is an easy way to do this.

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2017 Annual Report

In our 2017 Annual Report, you will find important information about Provident10, the Plan, fund performance, and our financial statements.

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