Pension Plan and Leaves of Absence

Neither you nor your employer makes Pension Plan contributions during your unpaid leave of absence, which means you do not earn credited service. 

You will, however, be granted employment service for up to 54 weeks if your approved unpaid leave is less than 24 months in length and you return to work with the same employer. 

You have the option to buy back this period of missed credited service, up to a maximum of 54 weeks (or 52 weeks prior to May 31, 2010). 

Get more information about purchasing missed pensionable service. 

If you do not return to work with your same employer after your unpaid leave, you will not be granted employment service for the entire period of the leave. Any employment service that was previously granted will be adjusted accordingly.

If your approved unpaid leave extends beyond 24 months and no contributions are remitted to the Plan, your Plan membership will be terminated in accordance with The Pension Benefits Act, Manitoba. Employment service will not be granted for the entire period of the leave. Any employment service that was previously granted will be adjusted accordingly and Pension Plan termination options will be sent to you.

If you go on an approved leave before your first payroll date, employment service will not be granted for the leave period between your date of hire and first payroll date.

How Credited Service and Employment Service Affect Your Pension 

Credited service is the total of the years and/or partial years you contributed to or purchased service in the Plan. Credited service also includes service accrued while in receipt of disability benefits from a specified long-term disability plan. In any given year, the maximum total credited service you can earn is one year. The more credited service you accumulate, the higher your pension benefit will be.

Employment service refers to the uninterrupted period of employment from your first date of paid employment with one or more Participating Employers. 

Your employment service is used to determine your eligibility for pension and includes eligible periods of paid and unpaid leaves of absence (LOAs), sick LOAs when in receipt of benefits from a specified long-term disability plan, and service transferred in from another registered pension plan. The missed period of pensionable service taken during unpaid LOA/layoffs cannot exceed 54 weeks in duration (or 52 weeks prior to May 31, 2010) for it to be considered Employment Service. 

Employment service is considered when determining your eligibility for retirement (for example, your Rule of 80 Date). 

Employment service includes eligible periods of paid and unpaid leaves or sick leaves while in receipt of benefits from a specified long-term disability plan. 

If you have been on an unpaid leave or are considering going on an unpaid leave, please contact us to ensure you understand the potential impacts to your eligibility for retirement.