Purchasing pensionable service

During your career, there may be times when you take a leave of absence, maternity, paternity, or parental leave, or were off because of an illness. Or there may have been a time when you worked for a participating employer but were not a member of the Plan. As a result, there may be gaps in your pensionable service. Purchasing those periods is a way to increase your pension at retirement.

Why should I purchase pensionable service?

When you purchase service, you gain additional pensionable service and membership in the Plan, increasing your overall pension at retirement.
What's on this page
  • Why you should purchase?
  • How to purchase
  • Types of service you can purchase
  • Payment options
  • Tax considerations

Important to note

The cost will depend on the type of pensionable service and when you are purchasing it. The longer you wait, the more expensive it may be. You may request a quote to purchase pensionable service on My Pension Resource.

How to purchase pensionable service

  1. Log on to My Pension Resource.
  2. Go to My Pension > Purchase of Pensionable Service.
  3. Select the periods that you would like a quote for.
  4. Depending on your communication preference, you will receive your quote by mail or through the Message Centre in about 4 weeks.
  5. When you receive your paperwork you will need to make an election. You may want to seek advice from a financial advisor.
  6. Sign and return the completed forms and include your payment within 90 days of receiving your quote.
  7. Once payment has been received and deposited, your pensionable service will be credited and show up on your annual pension statement under the year your purchase was completed.

Types of service you can purchase

Payment options

You must make a payment within 90 days of being issued a quote. If you do not, you will need to apply for a new quote which may result in a higher cost.

There are three payment options, depending on your employer and the total cost of your purchase:

Lump-sum payments​

You may make a lump-sum payment by cheque. The amount would be included as part of your regular pension contributions which are tax deductible.

You may be eligible to make a lump-sum payment through a direct transfer of funds from your personal RRSP.

Payroll deductions​

WSIB and WISE Trust Employees only
Purchases costing more than $100 may be paid through a series of biweekly payroll deductions. For this option, your total cost will include the principal cost of your purchase and interest charges. The total cost of your purchase will determine your repayment period options. The deductions you make in a calendar year will be included as part of your regular pension contributions which are tax deductible.

Combined lump-sum and payroll deductions option

WSIB and WISE Trust Employees only
Your total cost will include the principal cost of your purchase and interest charges. The total cost of your purchase, less your lump-sum payment, will determine your repayment period options.

Tax considerations

If you make a payment before April 30th for a period of absence that happened in the same tax year, your employer will file an amended pension adjustment (PA) which will impact your RRSP room for the following year. If you pay for the leave after the April 30th, a past service pension adjustment (PSPA) is required and you may need to create RRSP room by withdrawing funds from your personal RRSP. We recommend you seek professional tax advice for information regarding tax implications when purchasing pensionable service.

Keep reading: Building your pension

Transferring your pension

Learn how you can transfer the value of former employer’s pension plan into your WISE Trust plan.
How to transfer your pension

Pension contributions

Contributions are based on your pensionable earnings and are deducted directly from your base salary.
How your contributions work

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