Definition of Purchased service:
The service time Canadian pensioners can buy to add on to their pensions. The purpose is to compensate for periods, such as maternity leave, paternity leave and military service, when they were ineligible for pension benefits.
Typically, retirement plan participants would only be permitted to purchase service while they are an active participant contributing to the plan at that time, so they would not be able to purchase service time once they have already retired, stopped working, or otherwise separated from the retirement plan. .
Purchased service is the additional amount of service years that pensioners can purchase to be counted towards their pension account. Some retirement systems in the United States and Canada allow participants to purchase service time under certain conditions.
How to use Purchased service in a sentence?
- Not all retirement systems and plans in North America offer purchased service options to their employees.
- Funds from purchases of service can be paid out in many different ways, including a direct deposit via a transfer of funds from a savings plan or given in one lump payment, money order, or even by check. .
- Purchased service is one way for workers to add money to their pensions in order to raise the monthly or annual amount of money.
Meaning of Purchased service & Purchased service Definition