Amendments to the treatment of Leave Without Pay for the Public Service Pension Plan
June 23, 2021
As of June 10, 2021, members of the public service pension plan who take parental or compassionate caregiving leave without pay are now only required to pay their share of the pension contributions if they decide to credit this time to their pensionable service.
For example, prior to June 10, a plan member on an 18-month parental leave paid the single rate (employee share) for the first 12 months and the double rate (employee and employer shares) for the last 6 months. As of June 10, 2021, plan members will maintain the single rate for the full 18 months.
These changes apply to the following types of leave without pay:
- fulfilling parental responsibilities within an 18-month (78-week) period following the birth or adoption of a child of the contributor
- providing compassionate care or support to a family member who has a serious medical condition with a significant risk of death
- caring or supporting a critically ill child
- caring or supporting a critically ill adult
No action is required of plan members. The Government of Canada Pension Centre will ensure pension contributions are adjusted.
Impact on members whose leave without pay ends on or after June 10, 2021
Employees whose leave without pay for parental or compassionate caregiving purposes ends on or after June 10, 2021 will pay the single rate for the balance of the duration of their leave after June 10.
If these employees chose not to count their time on leave without pay beyond the first three months as pensionable service, they may revoke this decision and credit their time at the single rate.
Impact on members whose leave without pay ended before June 10, 2021
As per the Public Service Superannuation Act, these regulations cannot be applied retroactively. Members whose leave without pay ended before June 10, 2021 are not impacted by these changes.
Public service group insurance benefits plans
The benefit plans are not impacted by these changes. Members can be covered for health and dental during their extended leave period, but their contribution requirements will vary depending on the benefit plan and reason for the leave.
If you have questions about these amendments and their impact on your pension contributions during a period of leave without pay, please contact the Pension Centre.
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