Purchasing and Transferring Service

Looking to enhance your pension benefit?

Purchasing or transferring service to the Plan is one way to get the most from your pension. Whether you are a new member, are re-joining, or are leaving your current employer to for a job with one of our participating employers, you have several options available.

Download our quick guide to pension transfers. 

• Why purchase or transfer service to the plan?

  Become vested sooner. Meaning, you could become eligible for a lifetime pension.

  • Increase your monthly pension benefit by adding service.
  • You may be able to retire earlier with an unreduced pension.
• Types of service that can be transferred
  • Service from another registered pension plan
  • Service recognized under the National Reciprocal Transfer Agreement
  • Service recognized under specific plan-to-plan transfer agreements
  • Service transferred from the Government Money Purchase Plan (GMPP)
  • Service accrued in defined benefit and defined contribution plans registered under the Income Tax Act
  • Service accrued in a plan that was recognized under the Portability of Pensions Act:
    • Teachers’ Pension Plan, Uniformed Services Pension Plan, Members of House of Assembly Pension Plan, Provincial Court Judge’s Pension Plan, and the Memorial University of Newfoundland and Labrador Pension Plan

  Note: To transfer service, service must exist in the exporting plan.

• Types of service that can be purchased
  • Additional Government Money Purchase Plan service, if insufficient funds were available in the GMPP
  • Authorized leaves of absence without pay (LWOP)
  • Eligible worked service under the PSPP for which contributions were:
    • Refunded
    • Never paid
    • Additional voluntary contributions (AVC)
  • Prior full-time  contractual service in another plan

  Note: Confirmation of eligible service under previous plan is required

• When is the best time to purchase or transfer service?

  The best time to purchase or transfer service is today! The cost will often increase as you age or near retirement.

  Further, submitting a request for purchase of service through your employer within 90 days of returning from an authorized leave of absence will give you a preferred rate and employer contribution matching:

  • Request received within 90 days of member re-entering the Plan, member pays preferred rate, and employer matches contributions.
  • Request received after 90 days of returning to the PSPP, member pays full actuarial cost with no employer matching contributions.
• What is the process to transfer or purchase service?
  • Upon request, your employer will submit a request form to Provident10
  • The member will then receive a contract with 45 days to submit to Provident10
• What are my options to pay for service?
  • Write a cheque to the PSPP Fund
  • Transfer from existing registered retirement savings plan (RRSP) to PSPP Fund
  • Deposit money into RRSP; transfer to PSPP Fund
  • Payroll deductions from employer payroll (interest charges apply)
• Transferring between the GMPP and the PSPP

  Quick guide to GMPP Transfers

  To start a transfer between the GMPP and the PSPP, ask your employer to complete and submit an Appendix “A” Transfer Application for you.

  If the PSPP is the importing plan, once Provident10 receives this form from your employer, we will:

  • Determine the amount of service eligible for credit under the Plan pending the transfer
  • Determine the cost of crediting the service under the Plan
  • Complete an Appendix B, that will contain the above information plus the service available for transfer from the GMPP.

  Once we have completed the Appendix B, we will send it directly to you. The signed Appendix B must be returned to Provident10 within 45 days of the date we signed the form.

  Need help completing your Appendix B form? This video walks you through form, section by section, to help you fully understand what everything means and choose the right options to transfer your funds.

  If the PSPP is the exporting plan, once Provident10 receives this form from your employer, we will:

  • Determine the amount of money available for transfer from the Plan to the GMPP
  • Complete an Appendix B, that will contain the above information and forward to you.

  The signed Appendix B and GMPP Consent Form must be returned to Provident10 within 45 days of the date we signed the form.

• Transferring your service to another plan

  You may be able to transfer your service with the PSPP to another plan through a reciprocal agreement, provided you meet the criteria for transfer.

  The first step is figuring our if your new plan has a reciprocal agreement with Provident10. You’ll find the complete list here.

  The main criteria for eligibility for transfer are:

  • you did not receive a refund of contributions and,
  • you are not in receipt of any form of pension benefit from the PSPP.

  Please note that due to plan differences or differences in calculation assumptions a lesser amount of service may be credited under an importing plan.

  We recommend contacting the administrator of the importing plan to initiate the transfer process. Typically, the process is initiated by the completion of an Appendix “A” Transfer Application form with a copy sent to both the importing plan and Provident10.

• Transferring service to the PSPP

  When you become a member, you can transfer service from another pension plan provided you meet the criteria for transfer.

  The first step is figuring our if your new plan has a reciprocal agreement with Provident10. You’ll find the complete list here.

  The main criteria for eligibility for transfer are:

  • you did not receive a refund of contributions and,
  • you are not in receipt of any form of pension benefit from the former plan.

  Please note that due to plan differences or differences in calculation assumptions a lesser amount of service may be credited under an importing plan.

  Typically, the process is started by the completion of an Appendix “A” Transfer Application form with a copy sent to Provident10.

  Where there is no reciprocal agreement in place between the PSPP and the exporting plan, the PSPP will accept a transfer from any pension plan that is registered under the Income Tax Act. Under these circumstances, the transfer process is started by the member completing and submitting a “Transfer of Other Employment” form from Provident10.