How a Leave of Absence Impacts Your Pension

(Shows up on screen: Public Services and Procurement Canada. The words fade. Background music: jingle with acoustic guitar. Welcome page on white background showing hexagonal shaped icons with different images. In the middle, the words Government of Canada Pension Centre and the Royal Canadian Mounted Police logo appear and then disappear. Soft instrumental music playing. The narrator walks in and faces the camera behind a seating area.)

At the Government of Canada Pension Centre, we’re here to help!

Hi! My name is Christiane. During the course of your career, you may need to request an unpaid period of leave whether planned or unplanned. As an active member of the Royal Canadian Mounted Police pension plan, your employer could authorize pensionable leave without pay, often referred to as LWOP, for reasons such as:

• Maternity;
• Parental;
• Education;
• Relocation of spouse;
• Personal leave and more

(When the narrator says “… for reasons such …,” a black text box with white letters appears on the top-left corner of the screen, with the words MATERNITY, PARENTAL, EDUCATION, RELOCATION OF SPOUSE, PERSONAL LEAVE and AND MORE… appearing as named with the text box becoming larger as more words appear. The text box disappears.)

(Background music continues. The narrator walks around in front of the seating area and sits down.)

Under the RCMP pension plan, you can continue to accumulate pension credits during periods of approved leave. This allows you to maintain the full value of your pension. Keep in mind that certain types of leave cannot be considered pensionable, such as:

• Suspension without pay;
• Loss of basic requirements;
• Strikes; and
• Unauthorized leave

(When the narrator says “… be considered pensionable, such …,” a black text box with white letters appears on the top-right corner of the screen, with the words SUSPENSION WITHOUT PAY, LOSS OF BASIC REQUIREMENTS, STRIKES and UNAUTHORIZED LEAVE appearing as named and disappearing to make way for the next words. The text box adjusting in length according to the words that appear. The text box disappears.)

(Background music continues. The narrator is still seated but at a different angle.)

It’s important to know there is a limit on the amount of leave without pay you can count as pensionable service. Under the Income Tax Act, as a plan member you can accumulate up to five years. You can add another three years for child care, for a total of eight years of pensionable leave without pay. When you reach this limit, you cannot count any additional leave without pay as pensionable service.

(When the narrator says “… as a plan member you can accumulate…,” a black text box with white letters appears on the top-left corner of the screen, with the words 5 YEARS, 3 YEARS [underlined] and 8 YEARS appearing as named. The text box disappears.)

If you have not already reached the limits, the first three months of any leave approved by your employer is always pensionable. You must therefore pay the contributions for that period. If you are on leave for more than three months, you can choose to count or not to count pensionable service that occurs after the first three months.

(When the narrator says “If you have not already reached…,” the screen becomes blurry and a dark grey chart fills most of the screen, but you can still see the narrator seated in the background. The chart is showing a horizontal timeline. At the very left of the timeline is written START OF LEAVE. A mark, close to the middle of the timeline indicates the words 3 MONTHS. Under that space, the words PENSIONABLE SERVICE are written. At the very end of the horizontal timeline, the words END OF LEAVE are written. Under the space that separates 3 MONTHS and END OF LEAVE, the words SERVICE WITH OPTIONS are written. The chart disappears and the narrator is still sitting facing the camera.)

If you choose to count your leave of absence as pensionable service you do not need to complete a form to advise us of your decision, it will be included in the calculation of your pension. In this case, you would need to pay contributions for the full period of leave. Generally, you do not need to pay those contributions prior to, or during, your period of leave. However, upon returning to work, payments will be required. You can pay the amount owing with a lump-sum payment or through payroll deductions. If you retire before your period of leave has been repaid in full, deductions would continue from your pension. And don’t worry! We’ll take care of the calculations!

(When the narrator says “If you choose to count…,” a black text box with white letters appears on the top-left corner of the screen, with the words IF YOU CHOOSE TO COUNT YOUR LEAVE OF ABSENCE. When the narrator says “In this case, you would…,” the words disappear and the black text box with white letters on the top-left corner of the screen becomes larger, with the words YOU WILL NEED TO PAY CONTRIBUTIONS FOR THE PERIOD OF LEAVE. When the narrator says “You can pay the amount…,” the words disappear and the black text box with white letters on the top-left corner of the screen narrows, with the words YOU ONLY START TO PAY ONCE YOU’VE RETURNED TO WORK.The text box disappears.)

(Background music continues. The narrator is still seated but at a different angle.)

If you decide not to count your leave of absence after the first three months, you must complete the Election not to Count Leave Without Pay as Pensionable Service (RCMP-GRC 2480) form. When you sign this form, you are choosing not to count your leave without pay as pensionable service under the pension plan and this election is irrevocable. This service will not be included in the calculation of your pension. The Pension Centre must receive the signed form no later than three months after your return to work. You must also still be an active plan member. If you do not sign an option not to count your leave within this timeframe, you will be considered to have chosen to count your period of leave without pay as pensionable service and will owe pension contributions for your entire period of leave without pay.

(When the narrator says “…you must complete…,” a black text box with white letters appears on the top-right corner of the screen, with the words ELECTION NOT TO COUNT LEAVE WITHOUT PAY AS PENSIONABLE SERVICE (RCMP-GRC 2480). The text box disappears.)

(Background music continues. The narrator is still seated but at a different angle.)

You should also note during any leave of absence, you are required to retain coverage under The Disability Insurance Plan and you would owe any premiums for the entire period of leave. This is the case even if you opted not to count your leave without pay as pensionable service.

And, if you were making monthly payments for a service buyback, you would still be required to make these payments while you are on leave without pay.

(When the narrator says “You should also note…,” a black text box with white letters appears on the top-right corner of the screen, with the words MUST RETAIN COVERAGE UNDER THE DISABILITY INSURANCE PLAN. When the narrator says “This is the case even…,” the words disappear and the black text box with white letters on the top-left corner of the screen becomes larger, with the words EVEN IF YOU OPTED NOT TO COUNT YOUR LEAVE WITHOUT PAY. When the narrator says “And, if you were making…,” the words disappear and the black text box with white letters on the top-left corner of the screen remains there in the same size, with the words FOR SERVICE BUYBACK, PAYMENTS MUST BE MADE WHILE ON LEAVE. The text box disappears.)

(Background music continues. The narrator stands up and starts walking towards the back of the seating area. The narrator then faces the camera standing begin the seating area.)

I hope this was helpful to you! For more information about leave without pay, please visit our website at rcmp-grc.pension.gc.ca.

(When the narrator says “… our website …,” a black text box with white letters appears on the top centre of the screen, with the words RCMP-GRC.PENSION.GC.CA.)

Thanks for watching!

(Background music continues. The narrator walks away.)

(Background music playing… Contact information page, with the words CONTACT INFORMATION [underlined]: GOVERNMENT OF CANADA PENSION CENTRE—MAIL FACILITY, PO BOX 8500, MATANE, QC, G4W 0E2. Logo of a small telephone, followed by the word TELEPHONE: 1–855–502–7090. Logo of a small envelope, followed by the word EMAIL: PensionCentreRCMP.CentredespensionsGRC@pwgsc-tpsgc.gc.ca. White screen with the words CHECK US OUT: Logo for Facebook and the words /PSPC.SPAC. Logo for Instagram and the words @pspc_spac. Logo for Twitter with the words @pspc_spac. Logo for YouTube and the words /PWGSCanada. White screen with the Government of Canada Pension Centre logo in black, with a small red Canadian flag. The volume of the music goes down and stops. The Canada logo appears in black, on white background. The Canadian flag is waving. A 4-note jingle is heard.)