How We’re Governed

Provident10 operates in a jointly trusted governance structure. We are governed by a Board of Directors, which has been appointed by the Government of Newfoundland and Labrador (GNL) and the member unions.

• How did we start?

  On September 2, 2014, GNL and the five largest unions representing members of the Public Service Pension Plan (the Plan) announced an agreement to ensure the future sustainability of the Plan by introducing pension reform. The goal of pension reform was to maintain the defined benefit pension plan and be fully funded in 30 years.

  The main premise of the pension reform agreement was that GNL, and the Unions will be jointly responsible for the sustainability of the PSPP and will share equally in surpluses and deficits .

  The key features of the agreement were:

  • GNL will pay $2.685 billion, over 30 years, to address the unfunded liability
  • Employee and employer contribution rates increased
  • Certain benefit changes were made, including an increase in the early unreduced retirement ages, an increase to a six-year earnings averaging period when determining pensions, and the suspension of indexing on future service

  Following the pension reform agreement, a Joint Sponsorship Agreement was signed between GNL and the Unions. The purpose of this agreement was to establish the principles of the joint trusteeship, including the Funding Policy and the Trustee Corporation Framework for the establishment of an independent corporation to administer the Plan and manage the investments.

  The unions party to the agreement are:

  • the Association of Allied Health Professionals (AAHP)
  • the Canadian Union of Public Employees (CUPE)
  • the International Brotherhood of Electrical Workers (IBEW)
  • the Newfoundland and Labrador Association of Public and Private Employees (NAPE)
  • the Registered Nurses Union of Newfoundland & Labrador (RNUNL)

  On December 10, 2014, GNL introduced the necessary legislation into the House of Assembly to amend the Pensions Funding Act and the Public Service Pensions Act, 1991. Changes to both acts came into effect on January 1, 2015.

  On March 31, 2015, Provident10 was established, the Board of Directors were appointed, and the assets of the Public Service Pension Plan Fund (the Fund) were legally separated from the Newfoundland and Labrador Pooled Pension Fund.

• Sponsor Body

  Oversight of the Joint Sponsorship Agreement is provided by the Sponsor Body, comprised of four to six GNL representatives, four to six union representatives, one non-union employee representative and one retiree representative appointed by the Newfoundland and Labrador Public Sector Pensioners Association. The Sponsor Body directs Provident10 regarding the level of risk appropriate for the Fund’s asset mix and makes decisions regarding plan benefits.

• Plan Text

  The Public Service Pension Plan’s benefit provisions are contained in the Newfoundland and Labrador PSPP Plan Text.

• Appeals Policy

  The Appeals Process and Procedure will ensure plan members are able to address issues in a fair and efficient manner, through an internal or independent external review process.

  Review the Appeals Process and Procedure

• Joint Sponsorship Agreement

  The Joint Sponsorship Agreement establishes the principles of the joint trusteeship, including the Funding Policy and the Trustee Corporation Framework for the establishment of an independent corporation to administer the Plan and manage the investments.

  Review the Joint Sponsorship Agreement