Basics of buying past service for Simon Fraser University (SFU) employees
Buying past service may increase your monthly pension payment when you retire. Learn about buying past service if you were employed by SFU when it joined the plan on July 1, 2021.
After you enrol in the College Pension Plan, you may be eligible to buy service for the years you participated in the SFU Academic Pension Plan before SFU joined the College Pension Plan. This is called buying past service.
Buying past service may increase the amount of your monthly pension payment when you retire.
Note for academic administrators
If you are an academic administrator and you choose to waive your enrolment in the College Pension Plan, you are not eligible to buy past service for the time you participated in the SFU Academic Pension Plan before SFU joined the College Pension Plan. This applies even if you join the College Pension Plan later.
How we calculate the cost to buy past service
The cost to buy past service is based on the amount the plan needs today to cover the future costs of your increased pension. This amount is determined by an actuary—a professional with specialized knowledge of finance, statistics and risk theory.
How to use the tables below
The two tables on the next page show an estimate of what it would cost to buy one year of service based on your current age and salary at the time you apply to buy the service. Look for the annual salary and age that are closest to your current situation to find the most relevant estimate. The values in the table are estimates only. The actual cost of buying service may be higher or lower depending on your individual circumstances.
You do not need to buy your entire period of service in the SFU Academic Pension Plan. However, if you choose to buy only a portion of your service, it must be the most recent portion.
For each year of service you plan to buy, choose the table that matches the correct time period. The cost to buy service worked after 2015 (the first table) is differ- ent from the cost to buy service worked in 2015 or earlier (the second table). That’s because we calculate your lifetime pension using two pension formulas: one for service earned up to and including December 31, 2015, and one for service earned on and after January 1, 2016.
Example: Maryam is 49 and earns $112,000 annually. The cost for her to buy one year of past service worked 2016 or later would be approximately $23,396.
Cost to buy one year of service worked 2016 or after ($)
|Your current age|
Cost to buy one year of service worked before 2016 ($)
|Your current age|
After you join the College Pension Plan, you’ll receive more information about how to buy past service—including important deadlines and your payment options. We’ll send this information by September 2021.
Starting in September 2021, you will be able to apply to purchase past service. When you apply, you will receive a statement of cost that will show how buying past service could affect your future pension.
You can use the money from your SFU Academic Pension Plan, or other sources like RRSP or cash, but in all cases you must end your membership in the SFU Academic Pension Plan to be eligible to buy service.
More information about the tax implications of buying service will be available in September 2021. We recommend you seek independent financial advice before making a decision.
Important information if you are leaving your job in 2021
If you are planning to retire or leave your job at SFU this year and you want to buy past service, talk to your employer as soon as possible. You must apply to buy service within 30 days of ending your employment.