Pensions and Retirement

As of July 1, 2005, all teachers, including Teachers Teaching on Call, must contribute to the pension plan.

Current contribution rates as of January 1, 2024.

Teacher contributions as a percentage of salary: 11.17%

Employer contributions as a percentage of salary: 11.30%

Each month in which an income is earned and a pension contribution is made counts as a month of contributory service required to be eligible for a pension, or to be eligible for an unreduced pension. Contributory service does not increase the value of your pension. The maximum contributory service that can be accrued in a calendar year is one year. If a member receives an annual salary based on a September to June teaching year, the 10 months are considered to be one year.

Pensionable service is calculated as:

Full-time pensionable service

• Pensionable salary / a full-time equivalent’s pensionable salary x 10 months

TTOCs pensionable service

• Days paid / school district prescribed full-time days x 10 months

The maximum pensionable service that can be accrued in a calendar year is one year. If a member receives an annual salary based on a September to June teaching year, the 10 months are considered to be one year.

Contributions are based on gross salary. This may include administrative, supervisory or special qualification allowances, maternity leave top-up, and salary earned at summer school, and also includes the salary indemnity allowance of 2%.

Benefits are based on the average annual salary earned during your five highest earning years. Persons working less than full-time are credited with pensionable service pro-rated to full-time equivalent and are credited with actual salary received. If this occurs in the last 5 years of employment, there will be a year(s) in your salary-averaging period when you are credited with less than 10 months' service and less than equivalent full-time salary. For each of these years, salary from the period previous to the 5 years, adjusted for cost-of-living changes, is brought forward to fill in the gaps. The end result is that the final average salary is approximately equivalent to the final average salary of a full-time person earning at the same salary rate.

It is important to note that the pension will be less because the part-time person will have fewer years of pensionable service.

“Vesting” means you have achieved the minimum service requirement for a pension benefit.

Teachers who left teaching prior to January 1, 1993, qualify for pension benefits (are “vested”) if they have accumulated 100 months of contributory service.

Teachers who left teaching after January 1, 1993, are vested if they have accumulated either 5 years of continuous employment or 50 months of contributory service.

Teachers working after December 31, 1995, are vested if they accumulate 2 years (20 months) of contributory service.

Teachers working after September 30, 2015, have immediate vesting.

A retirement pension is first payable to a vested teacher at age 55. A pension is payable to teachers who contributed after age 60 and have less than the vesting requirements.

If you stop teaching prior to age 55, are vested, and leave your contributions in the pension plan, a pension is first payable at age 55.

A disability pension may be payable to a vested teacher if disabled from teaching and not receiving benefits from an approved long-term salary continuance plan, including the Salary Indemnity Plan: Long Term. Application must be made within two years of last contributing to the pension plan, or the end of SIP.

1. If you have already retired, your pension will depend on the pension option you have chosen.
2. If you have not retired, are vested and are in service, then the following applies:
   • If you die at age 55 or later, and have a spouse, your spouse will be eligible for a survivor pension beginning the first month following your death. The pension will be calculated as if you had retired and selected a Joint Life Last Survivor option with any applicable early retirement reduction, and no bridge benefit. If you do not have a spouse, the commuted value of your pension will be paid to your beneficiary or your estate.
   • If you are under age 55 at death, and have a spouse, your spouse will be eligible for a survivor pension, or a transfer of the commuted value to a locked-in RRSP. If you do not have a spouse, the commuted value will be paid to your beneficiary or estate.
   • The commuted value of your pension is the lump sum necessary to fund the pension promise and is normally significantly greater than your contributions and interest.
3. If you have not retired, and are not vested, a refund of your contributions plus interest will be paid to your named beneficiary or estate.

To retain eligibility for any form of pension, contributions must remain in the plan.

Pensionable service may be purchased for certain defined leaves of absence, to a maximum of three years maternity/parental leave and five years of general leave. More detailed information is available on the Teachers’ Pension Plan website tpp.pensionsbc.ca.

Pension transfer agreements with other provinces and federal government and public service employers in BC provide some measure of protection of pension rights of teachers who move between various employers.

Contributory service in another province, with other public service employers, etc., may also be combined with service in BC to provide an adequate pension.

If you resign from teaching, a commuted value may be transferred to a locked-in RRSP.

• Once contributions are withdrawn, they cannot be reinstated.
• Contributions cannot be withdrawn if on leave of absence or on a recall list.
• Contributions made after January 1, 1993, to a vested pension may only be transferred to a locked-in RRSP.

As of June 30, 2009, you cannot reinstate service in the plan.

For pensionable service earned before January 1, 2018
Monthly benefit until age 65 = bridge benefit + basic lifetime pension

1. Bridge benefit
   0.7% x highest average salary (HAS) up to year’s maximum pensionable earnings (YMPE) x years of service before 2018
2. Basic lifetime pension
   (1.3% x HAS up to YMPE) + (2.0% x HAS exceeding YMPE) x years of service before 2018

The YMPE for 2024 is $68,500.

Monthly benefit at and after age 65 = basic lifetime pension

For pensionable service earned on and after January 1, 2018

3. Basic lifetime pension
   (1.90% x HAS) x years of service after 2017

On retirement, until age 65, your pension is made up of A, B, and C. At and after age 65, your pension is made up of B and C.

Pensions may be increased annually to help offset increases in the cost of living. This is not a guaranteed benefit.

Employment in any private sector occupation is not affected by receipt of a teachers' pension.

If you become re-employed with a BC school board or other BC reciprocal employer, you may retain your teachers’ pension in which case you will be ineligible to contribute to the teachers’ pension plan.

This provision does not apply to a spouse who is in receipt of a teachers’ survivor pension.

To continue to receive your pension as a re-employed retired member, you must have:

• terminated your employment, and
• received your first pension payment.

If you have terminated your employment but have not received your first pension payment, you are not considered to be retired for the purposes of re-employment. If you return to work, you will be automatically re-enrolled in the plan, you will not receive any pension payments, and you and your employer will continue making contributions to the plan.

At retirement, or after retirement when coverage under another plan ceases, extended health care and dental care are available. Cost of coverage is paid by you; premiums may be deducted from your pension cheque.

It is your responsibility to apply for:

• benefits
• purchasing service for leaves of absence
• purchasing service while teaching less than half time and on partial leave from a full-time position
• information on pension agreements with other provinces, employers, etc.

On April 5, 2001, the Teachers’ Pension Plan became a jointly trusteed pension plan under a joint trust agreement between the partners. The partners are the British Columbia Teachers’ Federation (BCTF) and the provincial government. This significant event in the history of the Teachers’ Pension Plan was made possible by provisions in the Public Sector Pension Plans Act. It paved the way for representatives of the plan stakeholders—government, employers, unions, plan member associations, and retired members—to negotiate an agreement to share governance of the plan. The agreement includes sharing the gains or surpluses and liability for deficiencies in the pension fund. Joint trusteeship also simplified pension plan administration and management. Under the joint trusteeship agreement, plan members and plan employers share equally in the administration and management of the pension plan.

In 2021, the provincial government and the BCTF agreed to amend and restate the 2001 Joint Trust Agreement. The restated Joint Trust Agreement:

• consolidates all amendments to date.
• removes all spent provisions.
• includes funding requirements due to changes to the funding provisions of the Pension Benefits Standards Act.
• clarifies the future use of surplus assets.
• reflects the creation and use of the Rate Stabilization Account (RSA) and the flow of contribution rates between the RSA, the Inflation Adjustment Account, and the Basic Account.

The trustees appointed by the BCTF are plan members selected from teachers, retirees, and excluded employees.

The trustees appointed by the provincial government may be employees of school districts or the government. The plan employer partner and the plan member partner each appoint five trustees.

The board, as of May 2024, is composed of the following trustees:

Appointed by the plan—Employer partner

• Reg Bawa
• Cheryl Eason
• Lynda Reeve
• Adam Molineux
• Sarvi Brent

Appointed by the plan—Member partner

• Elizabeth Baverstock
• Al Cornes
• Chung Yan Ip
• Leslie Roosa
• Ankie Carswell

Chung Yan Ip is the current chair.

Joint trusteeship modernizes and enhances the governance of the Teachers’ Pension Plan and fulfills long-standing BCTF policy objectives. For more detailed information, you may view the Joint Trust Agreement at tpp.pensionsbc.ca.

The agreement describes the composition, appointment, powers, functions, and duties of the trustees to manage the pension plan and fund.

The partners are responsible for appointing the trustees; directing amendments to the plan, if certain conditions are met; and resolving trustee disputes. The Teachers’ Pension Board of Trustees is fully responsible for the management of the pension fund, including the investment of the assets, and the administration of the pension plan.

If you have concerns about the level of service from the Teachers’ Pension Plan, please contact the trustees, c/o Reg Bawa, Chair, Teachers’ Pension Board of Trustees, PO Box 9460, Victoria, BC V8W 9V8.

The board of trustees may amend the Pension Plan Rules, as long as changes can be funded by pension fund surpluses or are cost-neutral to the plan. Plan rule changes that result in contribution rate increases must be approved by the partners. In the future, if the actuary determines that it is necessary to increase contribution rates, the trustees must increase employer and member contribution rates equally.

The British Columbia Pension Corporation provides administration as an agent of the Board of Trustees. This is where members are enrolled, contributions are collected, benefits are processed, and pension payments are issued.

The British Columbia Investment Management Corporation (BCI) www.bci.ca provides investment management services as an agent of the board of trustees. The BCI is one of the largest institutional investors in Canada, offering a wide range of fund management services.

1. Members on Workers’ Compensation (WCB) accrue pension service as follows:
   1. If they are covered by their school board to their full salary with or without sick leave during a top-up period, the member's WCB payment is forwarded to the school board, and the school board tops-up the salary to full, according to the Collective Agreement. Sick leave is deducted at the appropriate percentage. Full pension service is reported, as for anyone else on sick leave.
   2. When the member runs out of sick leave, they should then apply for Salary Indemnity Plan (SIP) benefits, as would any other member who used up their sick leave. If the member medically qualifies for a claim, they are then covered by SIP. If the WCB payment is greater than the SIP payment, there would be no extra money paid to the member, but SIP would report their pension service, and they would continue to accrue pension service. A member on WCB who did not file a SIP claim following the expiration of sick leave would not accrue pension service.
2. Members on ICBC claims should follow the same procedure–sick leave, and then SIP, with pension service reported.

The Teachers’ Pension Plan employs the Pension Corporation to administer the pension plan. In administering the Teachers’ Pension Plan, the Pension Corporation must interpret and apply the Plan Rules.

The appeal process allows pension plan members, or organizations directly affected by a decision made by the Pension Corporation, to appeal all or part of that decision. The appeal process is designed to give you a fair and impartial avenue for appeal, if you are affected by a Pension Corporation decision regarding the application of the Teachers’ Pension Plan Rules. Some examples of decisions that can be appealed are: enrolment, purchase of service, average salary, pension benefits, and survivor benefits.

The Pension Corporation must apply the Teachers’ Pension Plan Rules consistently and cannot make individual exceptions. You cannot appeal on the grounds that the actual rule applied in the decision should be changed. Also, you cannot appeal something that happened to someone else.

If you disagree with a pension plan rule, you may write to the board expressing your concern. Although the board cannot act immediately on the issues you raise, the information may help identify the need for future changes to the plan rules.

While the process is designed to be straightforward and simple to use on your own, if you are a BCTF member, you may request assistance from the BCTF in your appeal. If you request assistance, you must authorize the release of the appeal reports to the BCTF. You may contact BCTF Income Security for assistance:

BCTF, Income Security
100-550 West 6th Avenue
Vancouver, BC V5Z 4P2
Phone: 604-871-1921 or toll free 1-800-663-9163, local 1921
Fax: 604-871-2287
Email: slalli@bctf.ca—Sarb Lalli, Assistant Director, Pensions and Group Benefits
charris@bctf.ca—Chris Harris, Director of Income Security Division

First, gather the facts and background on the decision by contacting the Teachers’ Pension Plan to request a documented explanation of how a plan rule was applied in the decision, as it relates to you.

Contact
Teachers’ Pension Plan
PO Box 9460
Victoria BC V8W 9V8
Phone: Victoria: 250-953-3022 | Vancouver: 604-660-4088
Toll-free: 1-800-665-6770
Fax: 250-356-8977
Email: use online contact form (tpp.pensionsbc.ca/web/teachers/contact-us)
Web: tpp.pensionsbc.ca

Then, if you are not satisfied with the explanation, you might choose to appeal.

 

General

1. All appeals must be directed to:
   Appeals Registrar, Pension Board Secretariat
   395 Waterfront Crescent, PO Box 9460
   Victoria, BC, V8W 9V8.
2. In accordance with Article 8 of the Teachers’ Pension Plan Joint Trust Agreement, a three-step appeals process is established:
   • Step 1—Appeal to plan administrative agent (Pension Corporation)
   • Step 2—Appeal to board
   • Step 3—Appeal to third party (arbitrator).
3. Information on the appeals process will be communicated to plan members.
   • Brochures on the process will be developed. The board will develop a communications strategy.
   • When making significant decisions in the application of the pension plan rules that directly affect a person, an organization, or a person and an organization, the plan administrative agent is to advise those affected of their appeal rights.
4. To the extent that it has control, the Board must ensure that each appeal by an affected party is dealt with promptly and efficiently.
5. References in Article 8 of the Teachers’ Pension Plan Joint Trust Agreement to “school days as used in the School Act” shall be considered to be the “days in session” as listed in the school calendar issued by the Ministry of Education. For ease of administration in the appeal process, “days in session” occur in the period September 1 to June 30.
6. The Pension Corporation, the Board, or the arbitrator, as applicable, must review and render a decision on the appeal.
7. The Board will review appeal information and the Board will consider appeals to the Board at regularly scheduled board meetings. If required, the Board will schedule additional meetings.
   • Statistical and summary information on appeals will be reported to the Board by the Appeals Registrar quarterly.
   • Copies of the appeal reports for resolved and abandoned appeals will be distributed with the quarterly report. Appeal reports must be returned to the board secretary at the board meeting.
   • Appeals for decision by the Board will contain the submissions and supporting material submitted by the affected party, copies of all relevant information or records from the file of the affected party maintained by the Pension Corporation, copies of all relevant information or records collected by the Pension Corporation on the Board’s behalf from any employer affected by the appeal, relevant legislative and procedural documents and the appeal report(s) prepared by the Pension Corporation. 
8. Appeals for decision by an arbitrator will contain all documents reviewed by the Board when it rendered its decision, a record of the decision of the Board, the Step 3 written submissions and responses of the affected party and the Board, and copies of relevant legislative and procedural documents. Appeal files must be returned to the board secretary at the conclusion of the arbitrator’s appeal review.

Specific appeal process

Step 1: Appeal to plan administrative agent (Pension Corporation)

1. A person, an organization, or a person and an organization directly affected by a decision of the plan administrative agent (the “Pension Corporation”) in the application of the Teachers’ Pension Plan rules (the “affected party”) may, by written notice to the Appeals Registrar, appeal all or part of the decision.
2. The affected party may submit an appeal of a decision of the Pension Corporation in the application of the plan rules. Appeals must be in writing and must be directed to the Appeals Registrar, Pension Board Secretariat, 395 Waterfront Crescent, PO Box 9460, Victoria, BC, V8W 9V8. The Appeals Registrar will acknowledge receipt of the appeal. The notice of appeal must contain sufficient information to identify the issue and to locate the pertinent files.
3. The Appeals Registrar will acknowledge your correspondence and send it to the Pension Corporation to review and provide an appeal report. The Pension Corporation will render its decision within 30 school days of receipt of the correspondence from the affected party, in an appeal report submitted to the Appeals Registrar. The appeal report includes all relevant information from your file, a chronology of the facts involved, and an assessment of how the plan rules were applied.
4. The Appeals Registrar will provide a copy of the appeal report to the affected party. The Appeals Registrar will include a covering letter that provides information on Step 2—Appeal to the Board and will include a Notice of Appeal— Step 2 form with the appeal report to the affected party. If the affected party is a plan member and provides written authorization and subject to applicable law, the Appeals Registrar will provide a copy of the appeal report to the organization that normally represents the category of plan members to which the affected party belongs (the “representative organization”).
5. Following review of the appeal report, the affected party may wish to continue the appeal to Step 2. 

Step 2: Appeal to board

1. Following review of the Step 1 appeal report, the affected party may wish to continue the appeal. To do so, the affected party must within 30 school days of receiving the Step 1 appeal report complete a Notice of Appeal—Step 2 form and submit it to the Appeals Registrar with a written submission indicating the basis of the appeal. The affected party may also submit with its submission additional clarifying or correcting information.
2. The Appeals Registrar will forward the completed Notice of Appeal—Step 2 form, the affected party’s submission, and any additional information submitted by the affected party to the Pension Corporation.
3. Within 21 days of its receipt of a completed Notice of Appeal—Step 2 form and submission from the Appeals Registrar, the Pension Corporation must collect and provide to the affected party and the representative organization, if any, copies of all documents, information, or records within the possession or control of the Pension Corporation relevant to the subject matter of the appeal. If the Pension Corporation reasonably believes that an employer may have within its possession or control documents, information or records relevant to the subject matter of the appeal, the Pension Corporation must, on the Board’s behalf, make written request to the employer for such documents, information, and records. Such requests will be made pursuant to the Board’s powers under s. 13 of the Pension Benefits Standards Act (PBSA) and s. 80 of the Teachers’ Pension Plan Rules. The Pension Corporation may, on the Board’s behalf, take such steps as are permitted by law, including making an application to the Supreme Court pursuant to s. 13(3) of the PBSA, to enforce such requests to employers. The Pension Corporation must promptly provide to the affected party and the representative organization, if any, copies of all documents, information, or records collected from an employer.
4. Within five (5) school days of its receipt of all documents, information, or records it is entitled to receive pursuant to paragraph 3, the affected party may indicate it wishes to make additional submissions or provide additional information to the Appeals Registrar. If so, the affected party will have 20 school days to prepare additional submissions or provide additional information to the Appeals Registrar. The Appeals Registrar will provide copies of the additional submissions or information to the Pension Corporation.
5. Within seven (7) days of its receipt of additional submissions or material from the Appeals Registrar pursuant to paragraph 4, or its receipt of the Appeals Registrar’s advice that the affected party will not be making additional submission or providing additional information pursuant to paragraph 4, the Pension Corporation may indicate it wishes to comment on the affected party’s submissions or any information provided. If so, the Pension Corporation will have 20 school days to prepare a Step 2 appeal report and submit it to the Appeals Registrar. The Appeals Registrar will provide a copy of any Step 2 appeal report to the affected party and the representative organization, if any. 
6. The affected party will have 20 school days from the receipt of any Step 2 Appeal report to reply to the Step 2 Appeal report. The Appeals Registrar will provide a copy of any such reply to the Pension Corporation.
7. Unless the appeal is resolved because the affected party accepts the Step 2 Appeal report of the Pension Corporation, the Pension Corporation accepts the submission or reply of the affected party, or the affected party abandons the appeal, the Appeals Registrar will, on the completion of the process described in paragraphs one (1) through six (6), submit the appeal to the Board for decision at its next regularly scheduled meeting.
8. The Appeals Registrar will prepare the appeal file for consideration by the Board. This file will contain the Step 1 Appeal report, the submissions and information submitted by the affected party, copies of the documents, information and records provided to the affected party pursuant to paragraph 3, the Step 2 Appeal report prepared by the Pension Corporation, if any, the reply to the Step 2 Appeal report prepared by the affected party, if any, and copies of relevant legislative and procedural documents.
9. An affected party or the Pension Corporation may request from the Appeals Registrar an extension of any time limit applicable to Step 2 appeals. Every such request must indicate the extenuating circumstances that necessitate the extension.
10. An appeal may be adjudicated by the Board, or by a panel of the Board consisting of one or more trustees appointed by the Board. If a panel consists of more than one person, the Chair must preside over the panel or designate the person who is the chair of the panel.
11. For an appeal referred to a panel:
    1. a. the panel has all the jurisdiction and may exercise the powers and perform the duties of the Board; and
    2. b. decision of the panel is a decision of the Board.
12. The Board or the panel of the Board will decide the appeal after reviewing the information presented in the file. The decision must be made by majority vote, unless the panel has only one member. A tie vote results in denial of the appeal. If the Chair of the Board or of the panel is appointed as a trustee under section 5.1(b) of the Teachers’ Pension Plan Joint Trust Agreement, the Chair will have no vote.
13. The Appeals Registrar will advise the affected party and the representative organization, if any, in writing of the Board’s decision within 15 school days of the decision being rendered. The Appeals Registrar will include information on Step 3 – Appeal to Third Party and include a Notice of Appeal—Step 3 form. 
14. Following receipt of the Board’s decision, the affected party may wish to continue the appeal to Step 3.

Step 3: Appeal to third party (arbitrator)

1. Following receipt of the Board’s decision, the affected party may wish to continue the appeal. To do so, the affected party must, within 60 school days of receiving the Board’s decision, complete a Notice of Appeal—Step 3 form and submit it to the Appeals Registrar with a written submission indicating the basis of the appeal.
2. On receipt of Notice of Appeal—Step 3 form, the Appeals Registrar will provide the Board with a copy of all documents reviewed by the Board when rendering its decision and a copy of the affected party’s written submission. The Board will determine if it wishes to make a written submission and/or a written response to the affected party’s submission.
3. The affected party will be provided with an opportunity to respond to the Board’s submission, if any. A copy of any response will be provided to the Board.
4. The Board will choose an arbitrator by lot from a list of arbitrators periodically agreed to by the partners as required by the Teachers’ Pension Plan Joint Trust Agreement.
5. The Board may consolidate appeals on the same issue and select a single arbitrator to hear the appeals. The affected party may make a submission to the arbitrator if the affected party does not agree with the consolidation (or failure to consolidate).
6. The Appeals Registrar will provide the arbitrator with copies of all documents reviewed by the Board when it rendered its decision, a record of the decision of the Board, the Step 3 written submissions and respective responses, and copies of relevant legislative and procedural documents.
7. The Appeals Registrar will provide a copy of all documents forwarded to the arbitrator to the affected party; the representative organization, if any; and the Board.
8. The affected party and/or the Board may request that the arbitrator order any party bound by the Teachers’ Pension Plan Joint Trust Agreement to make production of any documents, information or records relevant to the subject matter of the appeal, and the arbitrator will rule on such a request. If such an order is granted, the affected party and the Board will be entitled to modify any of their previously submitted written submissions to reflect the contents of the documents, information, or records so produced.
9. The affected party and/or the Board may request an oral hearing, and the arbitrator will rule on the request.
10. The arbitrator may accept new evidence if he or she is satisfied that the affected party or the board used all reasonable diligence to discover the new evidence before Step 3 of the appeal process, or the new evidence is discovered as a result of an order made under paragraph 8. The arbitrator may remit the appeal to Step 1 of the appeal process for reconsideration.
11. The arbitrator must rule only on the application of the pension plan rules in effect and applicable to the affected party at the time the decision being appealed was made by the administrative agent.
12. The arbitrator will decide the appeal. The decision of the arbitrator must be in writing and will be final and binding upon the affected party and the Board.
13. The arbitrator may not make an award that amends the pension plan rules.
14. The arbitrator may make a recommendation on an amendment to the pension plan rules for consideration of the Board.
15. The affected party(s) and the Board will share the costs of the arbitrator equally. The full cost of arbitration will be paid by the Board on receipt of the arbitrator’s decision and invoice. The affected party(s) will then be invoiced for their portion of the costs.
16. At the conclusion of the arbitration, the affected party and the Board will receive the report given by the arbitrator.

 

Calculating the cost of purchasing a leave of absence has been simplified. As of April 1, 2002, the cost of purchasing a leave of absence will be calculated as follows: your current full-time equivalent monthly salary multiplied by the combined employee and employer pension contribution rate multiplied by the number of months of leave of absence being purchased.

The most tax-effective time to purchase a leave of absence is immediately after the expiration of the leave and before April 30 of the calendar year following the expiration of the leave of absence.

Example:
If, as an active pension plan member with a current full-time equivalent monthly salary of $9,000 ($90,000 annual salary), you were to purchase a 10-month general leave of absence for the school year of September 2023 to June 2024, it would cost $9,000 x 22.47% x 10 months. The cost will be $20,223.00.

A member retiring on an unreduced pension would recover the cost of purchasing this leave of absence in about ten to fourteen years after going on pension.

If you were to purchase a 10-month Employment Standards Act leave of absence, such as a parental leave, for the school year of September 2023 to June 2024, it would cost $9,000 x 11.17% x 10 months. The cost will be $10,053.00.

A member retiring on an unreduced pension would recover the cost of purchasing this leave of absence in about five to seven years after going on pension.

General leaves: maximum purchase is five years of leaves over your career.

All maternity/parental leaves may not exceed a combined total of 3 years for leaves completed after December 31, 1991. Each leave must fall within 12 months from the child's date of birth.

For leaves of absence terminating after April 1, 2002, the time limit for purchasing a leave of absence will be five years from the completion of the leave of absence or termination of employment with that employer, whichever is earlier. Details for multi-year leaves of absence are available from the Teachers’ Pension Plan.

The Teachers’ Pension Plan online personalized purchase cost estimator at My Account is available to help you determine the cost and the cost benefit of purchasing a general leave of absence. The cost estimate can be printed and used as your purchase of service application form. The form must be signed by the employer from whom the leave was taken.

You may also contact BCTF Income Security for assistance:
BCTF, Income Security
100-550 West 6th Avenue
Vancouver, BC V5Z 4P2
Phone: 604-871-1921 or toll free 1-800-663-9163, local 1921
Fax : 604-871-2287
Email: slalli@bctf.ca—Sarb Lalli, Assistant Director, Pensions and Group Benefits
charris@bctf.ca—Chris Harris, Director of Income Security Division

More detailed information is available on the Teachers’ Pension Plan website. An application form called Purchase of service application is available, or you may use the personalized purchase cost estimator at My Account. This is a combined cost estimator and application form that you can print and attach to your application form. All applications must be signed by the employer who granted the leave of absence and then forwarded to the Teachers’ Pension Plan.

Contact information:

Teachers’ Pension Plan
PO BOX 9460
Victoria, BC V8W 9V8
Phone: Victoria: 250-953-3022 | Vancouver: 604-660-4088
Toll-free: 1-800-665-6770
Fax: 250-356-8977
Email: use online contact form (tpp.pensionsbc.ca/web/teachers/contact-us)
Web: tpp.pensionsbc.ca

For maternity and parental/adoption leaves of absence after December 31, 2000, the cost of purchasing the leave will be calculated as follows: current full-time equivalent monthly salary multiplied by employee pension contribution rate multiplied by the number of months of leave of absence being purchased. As the employer will be billed for its pension contribution, this type of purchase is always cost effective.

If you are purchasing maternity or parental/adoption leaves completed after December 31, 1991, the maximum that you can purchase is three years of leave. The amount of maternity and parental/adoption leave of absence purchased at the employee pension contribution rate is subject to limits established by the Employment Standards Act.

The most tax-effective time to purchase a maternity or parental leave of absence is during or immediately after the expiration of the leave and before April 30 of the calendar year following the expiration of the leave of absence.

Purchasing maternity or parental leave of absence is always worthwhile when the employer is required to make the employer contribution.

Type of LOA and conditions	Leaves commencing on or after December 31, 2000
Maternity no return-to-work requirement only the birth mother is eligible to purchase this leave cannot begin more than 11 weeks prior to the expected date of birth of the child	17 weeks, if leave commences before birth of child or termination of pregnancy may be extended by up to 6 weeks if a doctor certifies that the plan member is unable to return to work
Parental/adoption no return-to-work requirement leave to commence:  birth mother—immediately following end of maternity leave, unless mother and employer agree otherwise,  birth father—within 52 weeks of child’s birth,  adopting parent—within 52 weeks of child coming into custody	35 weeks–for birth mother who has taken maternity leave 37 weeks–for birth mother who has not taken maternity leave, or for birth father; or for adoptive parents may be extended by 5 weeks if a doctor certifies that the member is unable to return to work each leave must fall within 12 months from the child’s date of birth
Combined maternity and parental	maternity and parental leave may not exceed a combined total of 52 weeks, not including extensions taken with a doctor’s certificate all maternity/parental leaves may not exceed a combined total of 3 years for leaves completed after December 31, 1991 each leave must fall within 12 months from the child’s date of birth
General no return-to-work requirement includes any compassionate care leaves.	limited to the purchase of 5 years during the entire plan membership (this 5-year limit only applies to general leaves ending after January 1, 1992.)
Child-rearing must apply while an active member of the plan must have pensionable service before and after the child rearing period.	maximum of 5 years (50 months)
Compassionate care time to provide care and support to a family member in situations where the family member is gravely ill with a significant risk of death.	limited to 8 weeks within a 26-week period purchase at employee contribution rate

The above list is not exhaustive. Please see the Employment Standards Act and your collective agreement for more leaves of absence.

• Anyone who is employed or self-employed.
• Contributions are paid on wages or salaries above the Year’s Basic Exemption (YBE) and up to the Year’s Maximum Pensionable Earnings (YMPE).
• Contributions are also paid on wages or salaries above the YMPE and up to the Year's Additional Maximum Pensionable Earnings (YAMPE).
• Your contributions are matched by your employer.
• Additional contributions cannot be made.
• Revenue Canada maintains a Record of Earnings registered under your social insurance number and surname (Changes of name must be registered or your record will not include earnings under your new surname).
• There is total “portability” between the CPP and the Quebec Pension Plan (QPP).

• Available at age 65, even if still employed.
• Available as early as age 60 and have ceased employment. The pension will be reduced by 7.2% per year or 0.6% for each month that the pension is taken to a maximum of 36%.
• May be delayed to age 70. The pension is increased 0.7% per month over age 65 to a maximum of 42%.
• To receive a pension, you must be 60 years old and have made at least one valid contribution to the CPP.
• Valid contributions can be either from work you did in Canada, or as the result of receiving credits from a former spouse or former common-law partner at the end of the relationship.

Pension calculation: 25% of your adjusted average earnings.

Adjusted average earnings is the average of year-by-year wages adjusted to reflect year-by-year increases in the industrial wage in Canada, over the contributory period. The average will not include:

• low-earning periods spent rearing children under the age of seven.
• low-earning months after age 65.
• time while in receipt of a CPP Disability pension.
• 15% of the remaining low earning years.

Contributory period is the time since January 1, 1966 (the start of the CPP) or from the 18th birthday, whichever is latest, to the month before the pension starts, or the month in which you reach age 70, or die, whichever is soonest.

• Benefits are indexed annually.
• Benefits may be split with a spouse, based on the period of time you have lived with that spouse for income tax advantage. 
• Benefits are taxable.
• Benefits are payable anywhere in the world you reside.

Starting in 2019 the CPP began to grow to replace 33% of the average work earnings you received after 2019. The maximum limit used to determine your average work earnings will also gradually increase by 14% by 2025.

Your pension will increase based on how much and for how long you contribute to the enhanced CPP. The CPP enhancements will increase the maximum CPP retirement pension by up to 50% for those who make enhanced contributions for 40 years.

From 2019 to 2023, the contribution rate for employees/employers gradually increased from 4.95% to 5.95% on earnings between $3,500 and the year's maximum pensionable earnings (YMPE).

Starting in 2024, a second, higher limit has been introduced, allowing employees to invest an additional portion of their earnings to the CPP. This new limit, known as the year's additional maximum pensionable earnings (YAMPE), will grow to be 14% higher than the YMPE by 2025. Once the phase-in is complete employees and employers will each pay a contribution rate of 4% on earnings between the YMPE and the YAMPE. This will in turn increase their benefit amounts.

• Available if between 60 and 70, continuing to work and receiving the CPP retirement pension.
• CPP contributions will go toward a post-retirement benefit (PRB).
• Contributions stop at age 70.
• CPP contributions are mandatory for working CPP retirement pension recipients under age 65.
• Starting at age 65, employees may choose not to contribute to the CPP.
• An employee may later change this decision and start contributing again, but only one change can be made per calendar year.

Eligible if you:

• are considered to have a physical or mental impairment that is both severe and prolonged, making you unable to regularly pursue any substantially gainful employment.
• are under the age of 65.
• have not been in receipt of a CPP retirement pension for more than 12 months.
• have contributed to CPP in 6 of the last 10 years.
• the pension is a flat amount plus 75% of your retirement pension. Each dependent child (under age 18, or 25 if in full time attendance at school or university) will also receive a flat amount pension.
• the pension is paid from the fourth month of disability, but may be paid retroactively for up to one year.
• if still disabled at age 65, the disability pension will automatically revert to a retirement pension. The years during which you are in receipt of the disability pension are not included in the calculation of average earnings.
• The CPP enhancement increases the CPP disability pension starting in 2019 depending on how much and for how long an employee contributes to the enhanced CPP.

• is paid to your spouse upon your death.
• must have contributed in at least one-third of the calendar years in your contributory period (minimum of three years).
• The CPP enhancement increases the CPP survivor's pension starting in 2019 depending on how much and for how long an employee contributes to the enhanced CPP.

Spouse may also receive own retirement pension, but the combination of the two may not exceed one full retirement pension payable to a 65-year-old.

• a one-time payment to your spouse or estate
• amount is either 10% of the YMPE, or six (6) times your monthly retirement pension, whichever is least, to a maximum of $2500.

• paid to your dependent child upon your death
• benefit is a flat amount that is adjusted annually.

Members may be able to receive assistance in the application process from:

Disability Alliance BC
204–456 West Broadway
Vancouver, BC V5Y 1R3
Phone: 604-875-0188 Fax: 604-875-9227
Web site: www.disabilityalliancebc.org
Email: feedback@disabilityalliancebc.org

IN THE EVENT THAT CLAIMANTS ARE DENIED CPP DISABILITY BENEFITS, AND THEY ARE REQUIRED TO REAPPLY OR APPEAL THAT DECISION, THE BCTF OFFERS ASSISTANCE TO THOSE MEMBERS.

All BCTF members have access to group RRSPs. BCTF Group RRSPs have four distinct advantages. First, they allow contributions at source, which is a convenient way to invest. Second, no tax is paid on the monies invested, so there is no waiting period for getting the tax deduction. Third, funds invested earn interest through the year. Finally, the plans available to members offer both a variety of investment options and some funds not regularly available.

The 1993 plan is administered by Clarica/Sun Life, and offers Phillips, Hager & North funds. The plan is available to members in the following locals:

03	Kimberley	49	Central Coast
35	Langley	50	Haida Gwaii
391	Vancouver Elementary	55	Burns Lake
392	Vancouver Secondary	56	Nechako
43	Coquitlam	57	Prince George
44	North Vancouver

The plan is also available to BCTF staff.

Members should contact their board office for enrolment information, or contact Sun Life at 1-866-733-8613 for account information.

The 1996 plan is administered by the Royal Bank Financial Group. A variety of investment options are offered. This plan is available to members in the following locals:

01	Fernie	54	Bulkley Valley
02	Cranbrook	59	Peace River South
04	Windermere	60	Peace River North
17	Princeton	61	Greater Victoria
18	Golden	64	Gulf Islands
23	Central Okanagan	65	Cowichan
31	Nicola Valley	66	Lake Cowichan
34	Abbotsford	67	Penticton
36	Surrey	69	Mount Arrowsmith
37	Delta	70	Alberni
38	Richmond	71	Comox
40	New Westminster	72	Campbell River
41	Burnaby	75	Mission
42	Maple Ridge	78	Fraser Cascade
45	West Vancouver	80	Kitimat
46	Sunshine Coast	81	Fort Nelson
47	Powell River	84	Vancouver Island West
51	Boundary	88	Terrace
52	Prince Rupert	92	Nisga’a

Members should contact their school board office for enrolment information, or contact the Royal Bank Financial Group at 1-886-550-5517 for account information.

All other locals have a locally administered plan with various fund and investment options available.

Members should contact their local or school board office for all information.

Teachers' pension plans in all provinces in Canada participate in the transfer agreement.

If you transferred from Alberta before 1995, the transfer will occur only when you retire and will be done as a transfer of funds converted to an annuity. There is no recognition of pensionable service, but contributory service is recognized. Please contact the Teachers’ Pension Plan for further information.

You may apply to transfer under the agreement if:

• you terminated employment with an employer covered by the exporting plan on or after the date set by that plan, and at the time the importing plan receives your application, you are no longer a member of the exporting plan.
• you are an active member of the importing plan and have participated in the importing plan for at least 20 days.
• you have not taken a benefit from the exporting plan.
• you have not received a pension from the importing plan or the exporting plan.

The “exporting plan” is the plan you are transferring from and the “importing plan” is the plan you are transferring into.

Your eligibility to transfer is not affected by any break in contributions between plans. You must be an active member of the BC Teachers’ Pension Plan to apply to transfer service from another plan, though other plans may not require that you be an active member to transfer service to that plan.

You must have left your contributions on deposit in the plan from which you are transferring your service. You may not receive the full contributory and pensionable service if it results in a cost to the importing plan.

 

If you would like to apply to transfer your service under the new agreement, please contact the Teachers’ Pension Plan to confirm your eligibility and to get more information. You may apply in writing or by completing the online application form Interprovincial Reciprocal Transfer Agreement – Application Appendix A. You may then print the form and submit it to the exporting and importing plan. Make sure you keep a copy for yourself!

If you apply to transfer, the actual transfer will occur only with your approval, and after you have been given all the information about the amount of service and salary that will be transferred.

If you earned service in any Canadian public sector pension plan that’s not a teachers’ pension plan, submit the Pension transfer application (appendix A – transfer information request and authorization) form.

If you are now eligible to transfer your service, remember that it is not always to your advantage to do so. To find out if it’s to your advantage to transfer service to the Teachers’ Pension Plan, you will first need to request a transfer to find out the amount of service that the Teachers’ Pension Plan will recognize from your previous pension plan.

You will need to consider the following:

• Are you eligible for a pension from your previous pension plan?
• If no, then a transfer is most likely the best option.
• If yes, then consider if one pension from the TPP is likely to be better than two separate pensions.
• Also, can you take an early pension from the previous pension plan?

After you have the information on the amount of pensionable and contributory service that will be transferred, use the Teachers’ Pension Plan online personalized pension estimator to enter the information from your most recent Members Benefit Statement, and calculate your pension estimate for a specific retirement date. Then go back and increase the pensionable and contributory service by the additional amount that is being transferred, and recalculate your pension for the same retirement date. This will give you the monthly pension if you combine your service in the Teachers’ Pension Plan. If you are eligible for two pensions, one from the exporting plan and one from the importing plan, compare the above estimate with the sum of the two pensions. This will help you determine if the transfer is to your advantage.

You may not receive the full contributory and pensionable service if the amount from the exporting plan is less than the required amount of the importing plan. This is called a shortfall. You are eligible to purchase the shortfall. You should get advice from a financial planner on the benefit of the purchase, as the cost is the full actuarial cost of the shortfall.

You may wish to see an independent financial advisor before making your final decision to transfer or not transfer.

Contact information:
Teachers’ Pension Plan
PO BOX 9460
Victoria, BC V8W 9V8
Phone: Victoria: 250-953-3022 | Vancouver: 604-660-4088
Toll-free: 1-800-356-6770
Fax: 250-356-8977
Email: use online contact form (tpp.pensionsbc.ca/web/teachers/contact-us)
Web: tpp.pensionsbc.ca

You may also contact BCTF Income Security for assistance:

BCTF, Income Security
100-550 West 6th Avenue
Vancouver, BC V5Z 4P2
Phone: 604-871-1921 or toll free 1-800-663-9163, local 1921
Fax: 604-871-2287
Email: slalli@bctf.ca—Sarb Lalli, Assistant Director, Pensions and Group Benefits
charris@bctf.ca—Chris Harris, Director of Income Security Division