If you are intending to transfer your accrued federal pensionable service to the Yukon Health Authority Pension Plan, it is anticipated that the Pension Transfer Agreement (PTA) between the Government of Canada and the Yukon Health Authority will stipulate that only “paid-up” pensionable service is eligible for transfer.

After ceasing to be a contributor to the Federal Public Service Superannuation Act (Federal PSSA), a transferring employee will receive notification of the balance owing for any prior pensionable service election, and provision is included for payment of all or part of the outstanding balance within 2 months after such notice is given. Possible tax-effective sources for the lump sum payment of the remaining balance of the elective service cost could include a direct transfer from a Registered Retirement Savings Plan (RRSP), severance pay, etc.

Otherwise, if payment is not made within the prescribed 2-month time period, then the transferring employee will only be deemed to have the paid-up portion of pensionable service to his/her credit for purposes of exercising a transfer to the Yukon Health Authority Pension Plan under the anticipated PTA.

If your intention is NOT to transfer your accrued Federal PSSA pensionable service to the Yukon Health Authority Pension Plan, you have the following options:

• Pay the remaining balance with a lump sum payment (including a direct transfer from a Registered Retirement Savings Plan (RRSP), severance pay, etc.
• Arrange with Public Works and Government Services Canada for the remittance of advance regular payments on either a monthly, quarterly or annual basis;
• Postpone payment of the remaining balance until a deferred benefit under the Federal PSSA becomes payable. However, please note that this latter option would entail additional interest charges, and the defaulted installments would be compressed over the remainder of the original payment schedule.