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Teacher Newsmagazine Volume 17, Number 6, April 2005

Teachers' Pension Plan

Reinstatement to "family" pension plan and transfer to the TPP
After March 31, 2007, Teachers’ Pension Plan (TPP) members will no longer be able to reinstate a refund taken from the B.C. College Pension Plan, B.C. Municipal Pension Plan, or B.C. Public Service Pension Plan and then transfer the service to the TPP to increase their pensionable and contributory service.

Canada Revenue Agency has determined that the provision that allows this (Section 24 (2) of the Teachers’ Pension Plan Rules) is not consistent with Income Tax Act regulations. Therefore as of March 31, 2007, the Teachers’ Pension Board will be forced to repeal Section 24 (2) of the rules.

If you have taken a refund from one of the plans and are considering reinstating the service, you should do so very soon. Reinstatement of the first refund is always worthwhile. and the cost is usually recovered within three or four years of the start of pension. The second and subsequent refunds from a pension plan are more expensive and should be reviewed carefully.

You must apply to reinstate a refund from one of the plans listed above while you are an active TPP member.

Deadlines for purchase of service
Don’t miss an opportunity by missing the deadline. You may be able to increase your future pension benefit by purchasing service, but there are deadlines.

For example, you must apply to purchase the following before April 1, 2007, and while an active member:

  • a leave of absence that ended before April 1, 2002.
  • arrears for which you received notice before April 1, 2002.
  • non-contributory service if you were already an active member on March 31, 2002.
  • reinstatement of a refund if you were already an active member on March 31, 2002 (this also applies to reinstating refunds taken from the BC Municipal Plan and the BC Public Service Plan; the deadline for reinstating a refund from the BC College Pension Plan is February 28, 2007).

There are other deadlines. For example, you must apply to purchase the following by the deadlines shown:

  • Leaves of absence that ended on or after April 1, 2002 (within five years of the end of the leave period, or before you terminate your current employment, whichever occurs first)
  • Arrears for which you received notice after March 31, 2002 (within five years of when the plan sent written notice to you, or before you terminate your current employment, whichever occurs first)
  • Non-contributory service where you became an active member after March 31, 2002 (within five years of the date you enrol in the plan, or before you terminate your current employment, whichever occurs first)
  • Reinstatement of a refund where you became an active member after March 31, 2002 (within five years of the date you begin to again contribute to the plan, or before you terminate your current employment, whichever occurs first)

Please contact the Teachers’ Pension Plan, or visit the plan web site at pensionsbc.ca for fact sheets and other information on this topic (click on Teachers’ Pension Plan in the left-side navigation bar). The web site has a Purchase Cost Estimator to help determine the cost of purchasing a leave of absence. You can then use the Pension Estimator to determine how much the purchase will increase your pension. You may also contact the BCTF Income Security or visit bctf.ca/pensions for more information.

Maximizing contributory service when transferring service under a reciprocal transfer agreement
If you are eligible to transfer service under a reciprocal transfer agreement, you may be able to maximize the contributory service you are credited with by completing the transfer by March 31, 2007. Please contact the Teachers’ Pension Plan or the BCTF for details.

Notice to former Manitoba teachers
If you are an active teacher in B.C. who previously taught in Manitoba and left your pension contributions in the Manitoba Teachers’ Retirement Allowances Fund (TRAF), it may be to your advantage to transfer your pensionable service to the BC Teachers’ Pension Plan (TPP). A temporary amendment, which will expire December 31, 2005, to the Inter-Provincial Transfer Agreement provides more generous transfer values to former TRAF members who now teach in B.C.

If you would like to transfer your Manitoba service, apply in writing by completing the online application form Interprovincial Reciprocal Transfer Agreement– Application Appendix A (available at www.pensionsbc.ca, go to Teachers’ Pension Plan, then to Forms). Print the form and submit it to both the TRAF and the TPP. Make sure you keep a copy for yourself.

You will then receive from the TPP a copy of Appendix B, the "Transfer Estimate and Acceptance Form." Appendix B provides details regarding the dollar and service amounts available from TRAF and the dollar and service amounts recognized by the TPP. In a separate letter, the TPP will also inform you of the amount by which your B.C. TPP pension income would increase if you complete the transfer.

You can also determine the increase to your pension at various retirement dates yourself by inserting the additional recognized contributory and pensionable service amounts from the Appendix B form (6.A.1 and 6.A.2 respectively) into the online personal pension estimator. This added information should help you decide whether it is to your advantage to complete the transfer, or have two pension incomes on retirement (one from TRAF and the other from TPP).

Contact: Teachers’ Pension Plan, Box 9460, Victoria, BC V8W 9V8, Victoria: 250-953-3022, Vancouver: 604-660-4088, Toll free 1-800-665-6770, f: 250-356-8977, TPP@pensionsbc.ca.

Manitoba Teachers’ Retirement Allowances Fund (TRAF), 330 Johnson Terminal, 25 Forks Market Road, Winnipeg, MB R3C 4S8. Telephone: 204-949-0048, Toll free: 1-800-782-0714, Fax: 204-944-0361, info@traf.mb.ca. Web: www.traf.mb.ca.

You may also contact BCTF Income Security for assistance: BCTF, Income Security, 100-550 West 6th Avenue, Vancouver, BC, V5Z 4P2, 604-871-1921, toll free 1-800-663-9163, f: 604-871-2287, alambert@bctf.ca, cprellwitz@bctf.ca, or dlauber@bctf.ca.

Factor 88? Don’t wait!
Teachers who have reached the age of 64 or the factor 88, age plus contributory service with the teachers or municipal pension plan, may voluntarily withdraw from the BCTF Salary Indemnity Plan: Long Term.

If you have reached age 65 or factor 90, you are no longer eligible for long-term benefits and should withdraw. It is necessary for you to apply to withdraw.

Send a completed form, available from Income Security, local presidents, or online at bctf.ca/pensions/salary/LT-WithdrawalForm.shtml, to the BCTF Income Security Division.



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