Public service to Class B

[tree hugger]

Does anyone know what happens to your public service contributions if you leave for a class B? 
I'm not worried about getting another ps job after the contract - I'm worried that I'd be messing up my pension. 
Any insights?

 

[dapaterson]

Short version: It's complicated.

Longer version: It depends.

Still longer version: It can be good, bad or terrible, depending.


So, how long are you planning to go on class B?  Are you resigning from the PS, or taking a leave of absence?  Post-class B, will you return to class A service and take up a public service job?  How long have you been serving in the Reserves?  Do you have any prior Regular Force service?  Do you have any prior RCMP service?

All those questions have an influence on the impact of what you do.  It is, on paper at least, possible to be 35 years old with 35 years of pensionable service in government pension plans - with no ability to draw an unreduced annuity before age 60 or 65.

 

[tree hugger]

3yrs reg force but I got my contributions back on release.  I have 10yrs PS time.  I heard I can only take a leave of absence up to 1 yr, 3 mo so I might have to resign to take a contract.  I would eventually want to go back to a PS job and class A work.

 

[dapaterson]

So, are you currently in a military pension plans?  I forget the rules for those who are ex-Reg F who took a RoC on release then re-entered the Res F.

 

[tree hugger]

Unless something is included on my class a deductions, I wouldn't be part of a military pension.

 

[dapaterson]

OK.  I think as a former contributor to Part I of the CFSA (Reg F plan) who received a return of contributions you're safe from the odd interactions that can occur.

When you leave the PS, provided you're under 50, you'll be given the option of a deferred annuity or cash-out.  Assuming you don't take a cash-out, you should be able to buy back your class B period once you re-enter the PS (as long as you don't cross 55 months out of 60 on cl B/C service - that  would re-enrol you in the CFSA Part I, I think - and it's not quite that clean; the threshold is based on days worked, so class A leading up to the date also counts, so your "re-enter part I date" may be earlier than you think).  Any service you buy back would then be considered as Other Pensionable Service (including your former Reg F service).

 

[Colin Parkinson]

If you plan to buy back time try to do it when your younger and at a lower payscale.

 

[tree hugger]

I'd need Phoenix to be competent to get that done... :

I just don't want to be in a situation where I have not enough time on both sides and I end up with no pension.

 

[tree hugger]

So I've been told that I can transfer my PS pension to CF pension.  This is good news!

 

[mariomike]

So I've been told that I can transfer my PS pension to CF pension.

See also,

Pension Transfer Question 
Original Post:

I'm wondering about the transfer of pension from PSSA to CFSA.

https://army.ca/forums/threads/101691/post-1060040.html#msg1060040

 

[Posthumane]

I just don't want to be in a situation where I have not enough time on both sides and I end up with no pension.

You can't really end up in that situation. Since you have 10 years of pensionable service in the public service, if you do nothing you will get a pension at the age of 60 that amounts to 20% (2% per year) of your average pay over the five highest earning years (presumably your last 5 years).

It may or may not be worthwhile to transfer your PS pension to the CF, depending on how much you made at your PS job vs how much you expect to make in the CF. If your PS pay was higher then what you expect to make in the CF then you're better off leaving it.

 

[dapaterson]

Every individual's pension situation is unique.  Find an expert to help you look at your options - sometimes, transferring is in your best interest even if the new job pays less, if it means you can retire without penalty (or with reduced penalty) earlier.

Investigate the rules and potential impacts, and if need be find an expert who can assist.  SISIP offers affordable financial advice, for example.

And don't take advice from random strangers on the Internet...

 

[tree hugger]

Ok.  I've found out a few things.  I am a contributing member of the Reserve Force Pension Plan (Which is 1.1 of the CFSA).  To transfer my PS pension over, I need to be a Part 1 member of the CFSA.  Once I work 55/60 months class B, I will then be enrolled under Part 1.  So it sounds as though my PS pension would be deferred until if/when I reach 55 months class B.  During this period as a CLass B, not in the CFSA Part 1, I would be paying into the pension though.

 

[Colin Parkinson]

If your likely to stay around doing PS and Class B, don't let them cash out your pension when leaving if you can help it. Also as an indeterminate PS employee, there are leave without pay provisions you may want to look at.