Canadian Armed Forces pensions
Taking a leave of absence (Active member): Reservists in the Regular Force Pension Plan
During the course of your career with the Canadian Armed Forces (CAF), you may decide to take an unpaid leave of absence (leave without pay) for personal or other reasons.
On this page
- Understand how leave without pay affects your pension
- Contributions to the pension plan during service without pay for maternity or parental reasons
- Know the limits on how much maternity or parental service without pay counts toward your pension
- Pay for pensionable service during periods of service without pay
- Choosing not to contribute to the pension plan during leave without pay
- Buy back pension contributions later if you opt out during service without pay
- Required documents needed to send to the Government of Canada Pension Centre for your service without pay
Understand how leave without pay affects your pension
Pensionable service
Only service during which you contributed to your pension or later bought back counts as pensionable service.
Canadian Force service
Service without pay for maternity and parental reasons, whether or not you contributed, counts as CF service. CF service for these periods is calculated based on the ratio of your paid service to your unpaid service in the 12 months leading up to the commencement of your service without pay for maternity or parental reasons. No other type of Reserve Force service without pay is considered CF service.
Contributions to the pension plan during service without pay for maternity or parental reasons
You are not required to contribute to the pension plan while you are on a period of service without pay. However, your period of service without pay is considered pensionable service and when you return to work, the contributions owing for that service will be withheld from your pay in addition to your contributions for your current service.
The repayment period is equal to the period of your service without pay and you have the option to make a lump sum payment towards the amount owing at any point before the repayment period ends.
You will receive a letter from the Canadian Armed Forces Pension Centre outlining the amount owing and the deadline by which contributions have to be paid.
Know the limits on how much maternity or parental service without pay counts toward your pension
The Income Tax Act places restrictions on the total amount of service without pay for maternity or parental reasons that can be treated as pensionable during an individual's career and the maximum permitted is 3 years.
The Canadian Armed Forces Pension Centre will notify plan members in writing when they reach the Income Tax Act limit.
Pay for pensionable service during periods of service without pay
The pension contributions owing for your period of service without pay will be withheld from your pay when you return to work. However, if you would like to pay the full amount owing in the form of a lump sum payment, you can avoid having the contributions withheld from your pay as long as you do so within 30 days of your return to work. Otherwise, you have the option of making a lump sum payment towards the balance owing at any time before repayment period ends. Lump sum payments can be made by:
- personal cheque, postal or bank money order payable to the Receiver General for Canada. Send your payment, together with a Payment Transmittal Form (CF-FC 570)
Note: Lump sum
When sending a lump sum payment you must provide details on the payment by stating if it is for pension contributions or a service buyback payment.
Note: Tax receipt
The receipt issued from the Canadian Armed Forces Pension Centre will be your tax receipt. Include it with your tax return to claim the deduction of pension contributions to a registered pension plan.
- direct transfer of funds from your Registered Retirement Savings Plan (RRSP) to the Regular Force Pension Plan; using the Canada Revenue Agency Direct Transfer (T2033) form. Send your completed T2033, together with a Payment Transmittal Form (CF-FC 570), to the address indicated on the transmittal form
Choosing not to contribute to the pension plan during leave without pay
You must contribute to the pension plan in respect of the first three months of your service without pay. However, you may choose not to contribute for the portion of the period that exceeds the initial three months. Contact the Canadian Armed Forces Pension Centre or complete the Surrender of Right to Count Pensionable Service Without Pay (CFSA 106) form if you do not wish to contribute for the period that exceeds the initial three-months of your service without pay. You must complete the form within 90 days of your return to work and the Government of Canada Pension Centre must receive the form within 30 days of your having completed it.
If you do not advise the Government of Canada Pension Centre, you will automatically begin paying for your service without pay when you return to work and are again required to contribute to the pension plan.
Once you have surrendered your right to count your service without pay in excess of the first three months as pensionable, contributions are no longer payable in respect of that service. However, the initial three months of your service without pay remain to your credit as pensionable service and contributions are payable for that service. It should be noted that an option not to count a period of service without pay as pensionable service cannot be made after you have released from the CAF.
Remember, if you do not exercise your option within 90 days following your return to work, pension contributions will be payable for your entire period of service without pay.
Buy back pension contributions later if you opt out during service without pay
If you decide to buy back the service within one year of your return to work, the cost of buying back will be calculated based on the contributions that you would have made had your service without pay been paid service plus simple interest at the rate of 4%.
However, if you buy back the service later, the cost will be greater because it will be calculated based on your rate of pay when you choose to buy back and you will be required to pass a medical exam.
If you surrendered your right to count your service without pay as pensionable and, having changed your mind, you would like to count that service as pensionable after all, you must complete an Past Service Election Reserve Force Pension Plan (CF-FC 2438) form and forward it to the Government of Canada Pension Centre.
You can choose to buy back only a portion of the service, if you wish.
Required documents needed to send to the Government of Canada Pension Centre for your service without pay
A copy of your child's Birth/Baptismal Certificate or Adoption Certificate should be provided to the Canadian Armed Forces Pension Centre for the following types of service without pay:
- Maternity leave
- Parental leave
Contact the Canadian Armed Forces Pension Centre if you have any questions regarding the required documents.