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Leave Without Pay (LWOP) for other reasons – Your benefits

From: Employment and Social Development Canada

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What happens to my Pension and Benefits while I'm on leave without pay (LWOP) for "Other" reasons?

Here is a summary of your rights and obligations regarding your pension and benefits when on leave without pay for "other reasons".

Public service pension plan (PSPP)

  • First 3 months of LWOP: Contributions at single rate
  • After 3 months of LWOP: Contributions at double rate. Option to not count as pensionable.
  • Payment options and requirements: Lump sum or payroll deductions upon return from leave
  • What happens when I return from LWOP: Current contribution deductions resume

Public service pension plan (PSPP)

  • First 3 months of LWOP: Contributions for all periods are single rate
  • After 3 months of LWOP: Contributions for all periods are single rate
  • Payment options and requirements: Lump sum or payroll deductions upon return from leave. Cannot opt out of coverage.
  • What happens when I return from LWOP: Current contribution deductions resume

Disability Insurance Plan (DI) and Long-Term Disability (LTD)

  • First 3 months of LWOP: Employee's share of monthly premium
  • After 3 months of LWOP: Employee's and employer's share of monthly premium
  • Payment options and requirements: Payroll deduction upon return from leave. Cannot opt out of coverage Disability Insurance Plan premium rates.
  • What happens when I return from LWOP: Current premium deductions resume

Public Service Health Care Plan (PSHCP)

  • First 3 months of LWOP: Employee's share of contributions (Levels II and III)
  • After 3 months of LWOP: Employee's and employer's share of contributions
  • Payment options and requirements: Pay in advance. Payroll deductions upon return from leave. Opt out of coverage. Contribution Rates (njc-cnm.gc.ca)
  • What happens when I return from LWOP: Current contribution deductions resume. If opted out of coverage, current deductions will resume upon return from leave and coverage will resume first of the following month

Public Service Dental Care Plan (PSDCP)

  • First 3 months of LWOP: Contributions are 100% Employer paid
  • After 3 months of LWOP: Must pay Employer's share of contributions
  • Payment options and requirements: Public Service Dental Care Plan contribution rates
  • What happens when I return from LWOP: Employer paid coverage resumes first of the month following return from leave

Public Service Management Insurance Plan (PSMIP)

  • First 3 months of LWOP: Must pay premiums directly to Insurer
  • After 3 months of LWOP: Must pay premiums directly to Insurer
  • Payment options and requirements: Must pay premiums directly to Insurer Public Service Management Insurance Plan (PSMIP) Premium Rates
  • What happens when I return from LWOP: If payments were made to Insurer, coverage will be continuous and deductions will resume upon return from leave. If payments were not made, an eligible employee will need to reapply.

Important: This information is intended to be general in nature. Your compensation and benefits letter will specify the impacts specific to your situation.

Compensation and benefits letter

Your Compensation Advisor is responsible for providing information on coverage and payment options including amounts for disability insurance (short and long term), Public Service Health Care Plan, Public Service Dental Care Plan, and Public Service Management Insurance Plan's Life Insurance in the Compensation and Benefits letter.

With the exception of plans that require payment for applicable premiums be made in advance (PSDCP and PSMIP), coverage will be continuous and payment for accrued deficiencies/missed premiums will be arranged upon return from leave without pay.  Unless there is an option to opt out of coverage expressly stated (or coverage lapses due to non-payment), continued coverage during leave without pay is mandatory.

Accumulated pension deficiencies while on leave without pay

The Public Service Pension Centre is responsible for providing information on the Pension Plan and Supplementary Death Benefit, including payment options for accrued deficiencies (missed contributions) for periods of leave without pay and information on opting not to count leave without pay as pensionable time.  Visit the Pension Services Leave without pay information package, which will provide you with important information regarding the impacts of a leave of absence from the federal public service.

Continuous employment and continuous or discontinuous service

Please refer to your Collective Agreements or Terms and Conditions of employment for information on how your period of leave without pay may impact your "continuous employment" for the purpose of calculating severance pay and "service" for the purposes of calculating vacation and determining pay increment date.

Record of Employment (ROE)

An electronic record of employment (ROE) will be issued on your behalf within 5 calendar days of the end of the pay period during which the earnings are interrupted and sent to Service Canada (for example, if leave without pay commences on December 7, 2021, an electronic record of employment should be issued 5 days after the December 22nd pay). Employees may access their record of employment through My Service Canada Account. Refer to the ROE Frequently Asked Questions for employees for additional information on the record of employment process.

Accumulation of vacation or sick credits

While you are on leave without pay, you do not accumulate credits for any month in which you are not paid for at least 75 hours (or 80 hours for those with a 40-hour workweek). For example, if you currently earn 12.5 hours of vacation per month, and you proceed on LWOP effective December 7, 2021, you will not earn your vacation credit for the month of December and your vacation advancement in PeopleSoft will be adjusted accordingly. Consult your Collective Agreement for further details, including pro-ration for employees working part-time.

Register for ePost while on leave without pay

You can register for ePost to receive your Compensation and Benefits letter, as well as your pay stubs and related statements such as income tax information.
Register for ePost

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