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MAINTAIN PENSION CONTRIBUTIONS DURING UNPAID LEAVE DUE TO COVID-19

Staff who go on an approved unpaid leave of absence due to COVID-19 can now fund their pension contributions as a result of recent changes.

Known as purchase of service, this payment can help staff get closer to an unreduced pension or increase their benefit at retirement by avoiding a break in their Municipal Pension Plan (MPP) or Public Service Pension Plan (PSPP) contributions.

Purchase of service is a personal decision; therefore, staff are encouraged to consult an independent financial advisor before making a decision to pursue this. 

Purchase of service applies to a number of approved unpaid leave types, including:

  • COVID-19 

  • Maternity

  • Parental

  • Family responsibility

  • Compassionate care

  • Bereavement

  • Jury duty

  • Critical illness or injury 

  • Disappearance or death of a child

  • Domestic or sexual violence

To purchase service, staff need to apply to their pension provider within 30 days of the start of their leave.

For more information, please see the below resources: 

Purchase of Service new option introduced by BC Pension Corporation 

Purchase of Service for Unpaid Leave of Absence Employee Guide

Municipal Pension Plan

mpp.pensionsbc.ca/ca/taking-time-off-work-and-buying-service   

Public Service Pension Plan

pspp.pensionsbc.ca/ca/taking-time-off-work-and-buying-service

This page last updated May 18, 2020 6:33pm PDT