Increasing your pension: Royal Canadian Mounted Police

A service buyback is a legally binding agreement to purchase a period of prior service to increase your pensionable service and, potentially, your service in the force, under the RCMP Pension Plan. Additional information can be found throughout this section and in the Service buyback package.

Please contact the Government of Canada Pension Centre to receive an estimate to purchase your prior service. Upon engagement with the RCMP, an estimate will be provided based on information received from the member. The Government of Canada Pension Centre will mail out the forms and instructions pertinent to your buyback situation.

A service buyback is a legally binding agreement and you should review the information contained in the material sent by the Pension Centre before you decide to purchase your prior service.

If you choose to buy back previous service, you have three payment options. You can pay through semi-monthly deductions from your salary, lump sum payment(s), or a combination of the two. You may make additional payments at any time.

Refer to the Service buyback package for additional information on payments.

Pension transfer agreements (PTA) provide you with another way of either counting your pensionable service with an outside employer under the RCMP Pension Plan or a way to transfer your RCMP Pension Plan credits to an outside employer. Additional information can be found in the Pension transfer agreements package.

Pensionable employment is service with a former employer, excluding the federal pension plans, during which time you contribute to a registered plan under the Income Tax Act.

A Pensionable employment buyback is used to transfer the actuarial value of your accrued pension benefit from another pension plan in cases where there is no Pension transfer agreement in place. It is also used to purchase prior pensionable employment where you have already surrendered your benefits under that plan (receive a return of contributions or a Transfer Value).

In general, the answer is "yes", with a few other considerations:

• All previous RCMP service for which the benefit was not surrendered to another plan on discharge counts as both pensionable service and service in the force. Non-pensionable periods count as service in the force only
• Previous RCMP service for which a lump sum was received, such as a transfer value or a return of contributions, if purchased will count as both pensionable service and service in the force
• Previous RCMP pensionable service for which the benefit was surrendered to another plan on discharge can be transferred back directly (Public Service and Canadian Forces Pension Plans) or via a pension transfer agreement and counted as both pensionable service and service in the force

Yes, pensionable service under the following Acts can be transferred to the RCMP Pension Plan:

• Public Service Superannuation Act (PSSA)
• Canadian Forces Superannuation Act (CFSA)
• Members of Parliament Retiring Allowances Act (MPRAA)

Some of this service may also be counted as service in the force.

It's a term that's applied to pensionable service of at least two years earned under the PSSA, CFSA, or MPRAA that you surrendered to the RCMP Pension Plan on engagement. It indicates that the associated benefit you surrendered will be 'protected' on any subsequent discharge from the RCMP.

Service in the force is the measure generally used to determine if you're vested in the RCMP Pension Plan; that is, if you're entitled to a benefit other than a lump-sum return of contributions (ROC) plus interest or cash termination allowance (CTA). If you discharge with less than two years of service in the force, without "surrender protection", you'd only be entitled to a lump sum, regardless of how much pensionable service you had. But with "surrender protection" you're entitled to a deferred annuity payable at age 60 or an immediate annuity, if you're already 60 or older.

If you were a member of a pension plan with your former employer, there are ways of increasing your RCMP pension. You have two options:

1. Buy back eligible prior service through a pensionable employment service buyback or
2. Transfer pensionable service from your former pension plan to the RCMP Pension Plan if your former employer has a Pension transfer agreement with the RCMP. If not, your former employer may be able to request that a Pension transfer agreement be negotiated. Please see the Pension transfer agreements Package for more information

Some of this service may also be considered as service in the force.

Please contact the Government of Canada Pension Centre for more information on which of these options makes sense.

The cost of buying back service is dependent on what type of service you are buying back.

If you're purchasing service from the Public Service Pension Plan or the Canadian Forces Pension Plan, the cost is affected by the RCMP Pension Plan contribution rates, as well as your salary and age when you sign a buyback form.

If you're purchasing other types of service, such as pensionable employment or transfer value service, the cost is based on the actuarial going concern value of that service under the RCMP Pension Plan. These calculations take into account your age, salary, service, sex, and actuarial assumptions (for example mortality and interest rates) contained in the most recent actuarial valuation report on the RCMP Pension Plan.

You can estimate the cost of buying back service using the Personalized Pension Tools; Service buyback estimator, within certain Limitations. More details are available in the Service buyback package.

You must be connected to the RCMP internal network to obtain access to the Personalized Pension Tools.

The maximum installment period over which a service buyback may be repaid is a period equal to the greater of age 65 or a period of 20 years.

For example, a member who purchases prior service at age 50 will have a maximum of 20 years to complete his/her installments.

A member who purchases prior service at age 30 will have a maximum of 35 years to pay his/her installments.

A member will still have the option of increasing the instalment amount, thereby decreasing the repayment period, or making a lump sum cash payment at any time or by Registered Retirement Savings Plan (RRSP) as subject to the Income Tax Act (ITA).

Semi-monthly deductions are more costly than a lump sum payment because the semi-monthly deductions are life-insured and consist of principal, interest and life insurance amounts. When semi-monthly installments are life-insured, neither your estate nor your survivors are required to make any payments after your death. Any payments not life insured that are owed upon your death will be collected.

Please view the webpage Compare your Royal Canadian Mounted Police Pension Plan to another plan to see how RCMP pension plan compares to other pension plan.