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Canadian Armed Forces pensions
Increasing your pension (Active member): Reservists in the Regular Force pension plan

Increasing your pensionable service can be advantageous. For example, increasing your pensionable service can serve to augment your pension benefit.

As a contributor under the Regular Force Pension Plan, you can increase your pensionable service in more than one way, depending on your circumstances. You can elect to buy-back your prior pensionable service with the Canadian Armed Forces (CAF), Royal Canadian Mounted Police (RCMP), Federal Public Service or Her Majesty's Forces (other than Canada).

If you are entitled to a deferred pension or are receiving a pension from the RCMP or the Federal Public Service, you can give up your pension entitlement and transfer your pension credits – with some limitations – from that plan to the Regular Force Pension Plan.

Pension credits transferred from other plans (Public Service and Royal Canadian Mounted Police) to the Regular Force Pension Plan increase your pensionable service, but not your Canadian Forces (CF) service.

Note

An election to transfer your pension credits from the RCMP or the Federal Public Service must be made within one year of becoming a contributor under the Regular Force Pension Plan.

On this page

Difference between pensionable service and Canadian Forces service

Pensionable service is used

Pensionable service includes

If you bought back Reserve Force service

The full period you were eligible to buy back counts as pensionable service towards the type of pension benefit you receive at release and the early retirement reduction, but only the service you pay for will count in the pension formula.

Canadian Forces Service is used

Canadian Forces Service includes

Maximum years of pensionable service that can be accumulated

The maximum is 35 years of pensionable service.

What happens after 35 years of pensionable service is accumulated

You stop accumulating pensionable service and your contributions decrease to 1% of your pensionable earnings. Your average earnings – used in the pension formulas – include any salary you earn after completing 35 years of service, if that salary is the highest.

This means that, even though you no longer accumulate pensionable service, your pension increases if your average earnings increase.

What buying back previous service means

To buy back previous service means to pay the amount for past service for which you did not contribute or for which you received a lump-sum benefit.

When you buy back previous service, you are adding the service you buy back to your pensionable service. The more pensionable service you have, the bigger your pension will be and it may help you become eligible to retire with an unreduced pension at an earlier date.

Benefits of buying back previous service

Buying back service increases your pensionable service, which in turn:

Refer to the Scenarios to see examples of the impact of buying back past service.

What is meant by “topping up” pension contributions

If you were first a member of the Reserve Force Pension Plan and then joined the Regular Force Pension Plan, you have a one-time opportunity to pay to 'top-up' the contributions you paid while you were a member of the Reserve Force Pension Plan.

The contribution rate under the Reserve Force Pension Plan is lower than the rates under the Regular Force Pension Plan. While you were a member of the Reserve Force Pension Plan, you contributed at a lower rate and, if you bought back previous Reserve or Regular Force service while you were a member of the Reserve Force Pension Plan, the cost was based on the lower contribution rates. Topping up means, paying the difference in the contribution rates between the two pension plans for those periods of service.

In calculating the amount of your pension according to the pension formula, an adjustment is applied to take into account if you chose to pay less than the full cost of your top-up or if you chose not to top-up.

Reasons topping up pension contributions may be worth considering

Topping up:

Refer to the Scenarios to see examples of the impact of topping up service.

Considerations for “buying back” or “topping up” service when retirement is far away

Even if you're a long way from retirement, planning and saving for retirement is a good idea.

How previous service with the Canadian Armed Forces, the Public Service, the Royal Canadian Mounted Police or Her Majesty's Forces (other than Canada)is treated

You may be able to increase your pension by adding to it your previous service with:

There are two ways to include previous service:

The decision of whether or not to include your previous service is important, and may have an impact on your future retirement income. The decision is up to you. You are responsible for informing the Canadian Armed Forces Pension Centre if you want to buy back past service or transfer pension credits.

Service that is eligible for “buy back”

You should have already been notified if you were eligible to buy back previous Reserve Force service. You may have already started or completed the process to buy this service back. If you have not, it is important to take the time to consider it before the deadline.

You can buy back prior service as outlined below.

The following table represents the types of service you can buy back:

Table 1
For service with… You can buy back…
the Regular Force service without pay, such as maternity and parental leave; and service for which you received a lump-sum benefit from the Regular Force Pension Plan, as long as you do not have this service to your credit under the Federal Public Service or Royal Canadian Mounted Police (RCMP) pension plans.
the Reserve Force service during which you did not contribute to the Reserve Force Pension Plan, as long as:
  • you did not lose the right to buy back this service and
  • you do not have this service to your credit under the Federal Public Service or RCMP pension plans and
service for which you received a refund of contributions from the Reserve Force Pension Plan or from the Regular Force Pension Plan.
the Federal Public Service or the RCMP periods of service, except part-time Federal Public Service
Her Majesty's Forces
(other than Canada)		 service during which you were a member of a pension plan and for which you are no longer entitled to pension benefits.

If you are entitled to a deferred pension or are receiving a pension from the RCMP or the Federal Public Service, you can give up your pension entitlement and transfer your pension credits – with some limitations – from that plan to the Regular Force Pension Plan.

For more information, please contact the Canadian Armed Forces Pension Centre.

When service can be bought back

Reserve Force service

Once you are eligible to buy back, you have a strict deadline by which you can buy back Reserve Force service.

The Canadian Armed Forces Pension Centre sends you a Notification of Plan Membership (CF-FC 2018) indicating when you are eligible to purchase your previous service. You must buy back within one year after the date of this notification.

If you have not already carefully considered whether or not to buy back your previous service, you should carefully consider it now. You have a strict deadline to buy back this previous service.

If you miss this deadline, you lose the right to buy back the previous service. Please note that the Canadian Armed Forces Pension Centre will not send out a letter advising that the deadline has been missed.

Refer to the Scenarios to see examples of the impact of buying back past service.

Previous service with the Regular Force, Royal Canadian Mounted Police, Federal Public Service and Her Majesty's Forces (other than Canada)

You can choose to buy back previous Regular Force service, service that was eligible for buy back under the Royal Canadian Mounted Police or Federal Public Service, or service with her Majesty's Forces (other than Canada) anytime before you are released from the Canadian Armed Forces. The cost for buying back service takes into account interest from the year of the service or from the date you were paid a lump-sum benefit to the date of your decision to buy back. Since this will increase with time, it is cheaper to buy back service sooner rather than later. If you buy back service later than one year after joining the Regular Force Pension Plan, you must pass a medical exam.

What happens if I buy back previous service more than one year after I join the Regular Force Pension Plan

If you choose to buy back service with the Regular Force, Royal Canadian Mounted Police, Federal Public Service or Her Majesty's Forces (other than Canada) more than one year after you join the Regular Force Pension Plan:

This means it is cheaper to buy back service sooner rather than later.

Cost of buying back service

That depends on the service, as follows:

Previous Regular Force service

You pay:

The lump-sum benefit paid to you at release + 4% simple interest (calculated from the date of the original payment to the date of your decision to buy back that service)

Previous Reserve Force service

You pay:

Pensionable earnings in the calendar year of the service, updated to the year of your decision to buy-back x Reserve Force Pension Plan contribution rate in the year of your decision to buy-back + 7% interest compounded annually, calculated from the middle of the year that you bought back to the date of your decision to buy back that service + difference between contributions from the Reserve Force Pension Plan and the Regular Force Pension Plan, if any

Previous eligible service under the Royal Canadian Mounted Police or Federal Public Service

The cost depends on whether or not you are buying back service for which you contributed to the previous pension plan.

The following table demonstrates how the cost of your buy back is calculated based on whether or not you contributed under the previous pension plan:

Table 2
If you buy back… Your buy-back cost is…
previous eligible service for which you contributed to the pension plan and received a lump sum pension benefit what you were paid as a lump sum benefit, plus simple interest at the rate of 4% per year from date of payment to date of buy-back.
previous eligible service for which you did not contribute to the pension plan based on the Regular Force Pension Plan rates at the time of the previous service and your pay when you joined the Regular Force Pension Plan.

If you are entitled to a deferred pension or a refund of contributions, or you are receiving a pension from the Royal Canadian Mounted Police or the Federal Public Service, you can give up your pension entitlement and transfer your pension credits from that plan to the Regular Force Pension Plan.

Previous service under Her Majesty's Forces (other than Canada)

Contact the Canadian Armed Forces Pension Centre for a quote on the cost to buy back this service.

Reason 7% compounded interest is applied to Reserve Force service buyback costs

The rules for buying back Reserve Force service were developed in the course of extensive consultation with Canadian Armed Forces (CAF) members, CAF chain of command, officials in the Treasury Board Secretariat and others. In setting the cost to buy back service, the appropriate balance had to be struck to take into account two important factors:

Payment options for a service buyback

If you choose to buy back previous service and/or make a top-up election, you have three payment options. You can pay by monthly deductions from your salary, lump sum payment(s), or a combination of these payment methods. Please note that you may make additional payments at any time. Refer to the Service Buyback Package section for additional information on payments.

You may pay in either or both of the following ways:

Lump Sum

You may pay by cheque or by a direct transfer from your Registered Retirement Savings Plan (RRSP) or a Registered Pension Plan (RPP).

In order to make a direct transfer from your Registered Pension Plan without having income tax deducted, you must complete a Transfer of a Single Amount (T2151) form. This form is available from the administrator of your former pension plan or from the Canada Revenue Agency (CRA). The T2151 should be forwarded along with the Election to Pay for Prior Pensionable Service (CFSA 100) form to the address indicated on that form. Upon receipt of your election form, the Canadian Armed Forces Pension Centre will contact you concerning this payment option.

Monthly life-insured instalments

Why a medical exam is required and how it works

When you buy back prior service, you increase your pensionable service, which increases your pension benefit. Once you make the decision to buy back, the pension plan assumes the obligation to provide an increased pension benefit to you and to your survivor and children. And, the plan is responsible for the larger portion of the cost of the increased benefit. Furthermore, you do not have to pay your buy-back in full right away. You can choose to pay in instalments until age 65 or for 20 years, whichever is longer. If you die before you have finished paying for your buy-back, it is considered to be paid in full.

If you choose to buy back service in the Regular Force, Federal Public Service, Royal Canadian Mounted Police or Her Majesty's Forces (other than Canada) more than one year after you join the Regular Force Pension Plan, you have to pass a medical exam within 90 days before or after the date of your election to buy back your prior service. The exam certifies that you are mentally and physically fit to perform your duties.

The requirement to pass this exam protects the government – and other pension plan members – against a substantial financial burden in the event that members who are not physically and/or mentally fit may die prematurely and increase the plan's financial obligations.

Tax implications of buying back service

Every year, a formula established by the Canada Revenue Agency (CRA) is used to estimate the value of your pension under the pension plan. The result of this calculation – called a Pension Adjustment (PA) – reduces your Registered Retirement Savings Plan (RRSP) contribution room in the next year. Your PA appears on your tax slip every year. PAs were first introduced in 1990.

However, when you buy back service, you "earn" extra pension for those years in the past. As a result, the CRA considers that your past PAs have been too small and that you received too much RRSP room. The CRA will make an adjustment to your PAs for each year of the buy-back after 1989. The total of the extra PAs is called a Past Service Pension Adjustment (PSPA).

The service you are able to buy back depends on your RRSP contribution room. You can find your RRSP contribution room amount on your annual Notice of Assessment from the CRA. If your RRSP room is less than the PSPA, you may have to take some money out of your RRSP as taxable income to make more room. One way to pay for a buy-back is by transferring money from your RRSP. If you do this, it will reduce your PSPA.

The rules concerning PAs, PSPAs and tax deductibility are complex. If you are buying back service that covers a period of several years, consider consulting a tax specialist. You can also contact the Canada Revenue Agency for more information.

Steps needed to buy back service

If you are buying back:

Previous Reserve Force service

Can a service buyback be cancelled after submission of a signed buy-back or top-up form

You can only cancel a buy-back if you received erroneous or misleading information, in writing, from someone who is authorized to give pension information and you chose to buy back service based on that information. In this case, you receive a refund of the payments you have already made and no future payments are required. However, you can stop making future payments for your buy back if you can show that the cost of the buy-back causes you undue financial hardship which was unforeseen when you made the choice to buy back service.

In the event of financial hardship, you may be able to revoke your election for prior service in whole or in part. "In part" means that if you have elected more than one period of service, you may be entitled to revoke the period of service most recent in time.

Please contact the Canadian Armed Forces Pension Centre  for more information.

Whether additional portions of Reserve Force service can be bought back later

No.

Payment method for a service buyback can be changed

You can change your mind about the method of making the payment. You can at anytime pay a lump sum for a part of the balance still owed for the buy-back which will shorten the repayment period. And, you can at anytime pay the full balance owed. However, if you have made a lump-sum payment, you cannot reverse that decision.

What is meant by transferring pension credits

Transferring pension credits means moving your pension entitlement from the Federal Public Service or the Royal Canadian Mounted Police (RCMP) pension plans to the Regular Force Pension Plan and having it count as pensionable service.

Who is eligible to transfer pension credits

You can transfer pension credits if you are entitled to a deferred pension or a refund of contributions from the Federal Public Service or the Royal Canadian Mounted Police (RCMP). To transfer the credits, you would have to give up your right to the refund of contributions or to the future (deferred) pension under the other plan.

You can also transfer pension credits if you are receiving a pension from the Federal Public Service or the RCMP. In this case, you would stop receiving your pension and give up the right to the pension in order to have the pension credits transferred.

Reasons pension credits may be worth transferring

Transferring your pension credits increases your pensionable service which, in turn:

In some cases, it may not be worthwhile to transfer your pension credits. You should weigh your options carefully before making your decision.

Limits on when pension credits can be transferred

You must make the decision to transfer your pension credits within one year of joining the Regular Force Pension Plan.

Cost to transferring pension credits

There is no cost to transferring pension credits, unless you are making monthly instalments to buy back past service under the previous pension plan. If you are, you would continue to make these payments to the Regular Force Pension Plan to have the full service added to your pensionable service.

Factors to consider when deciding to transfer pension credits

The decision of whether or not to transfer your pension credits from the Federal Public Service or the Royal Canadian Mounted Police (RCMP) is a personal one and depends on many factors. You may wish to consult an independent financial advisor before making the decision.

The following table contains some of the questions you may wish to ask yourself if you're thinking about transferring your pension credits:

Table 3
Question Consideration
Do I expect my pay from the Canadian Armed Forces to increase during my service here? Your pension calculation is based in part on your pay – the higher your pay, the higher your pension.
Will the transferred service help me reach the threshold for an unreduced pension earlier? You may be able to retire earlier without a reduction in your pension, if you transfer your service.

Steps to transfer pension credits

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2026-08-14