New! Temporary part-time working arrangements & the PSPP

As you may be aware, last fall the Supreme Court of Canada ruled in Fraser v. Canada (Attorney General) that members of a federal government pension plan were eligible to purchase full-time pension credit for periods of employment when they temporarily reduced their working hours. OPB is taking proactive steps to ensure that the Public Service Pension Plan complies with the law following this decision.

Starting on August 1, 2021, active PSPP members have the option to purchase full-time pension credit for a period of employment where a member and employer agree to a reduced working hours arrangement (e.g., from full-time to part-time) on a temporary basis.

How does this affect me?

If you are currently in an arrangement agreed with your employer working part-time on a temporary basis, you will have the option to apply to purchase the full amount of credit. Apply within 24 months of the end of that period, your contributions will be matched by your employer. If you apply more than 24 months after the end of the temporary part-time arrangement the cost will be actuarial, which is likely to be more expensive.

If you are an active member who participated in a temporary part-time work arrangement agreed with your employer during a period in the past, a new buyback window of 24 months has been established to give you the option of purchasing full-time credit for that period with employer-matched contributions. This window will run from August 1, 2021.

You must apply to purchase this credit by July 31, 2023. Buybacks for employer-approved temporary part-time work arrangements outside this 24-month window will be at actuarial cost, which is likely to be more expensive.

Please note as well that the federal Income Tax Act places limits on the amount of full-time credit that can be accrued in respect of periods of part-time work.

For more information on eligibility and how to apply, visit opb.ca/temp-part-time.