Employee Enrolment

Our primary objective is to help our members prepare for and enjoy retirement.

The PSPP is a defined benefit (DB) pension plan, provided to current and former public service employees in Newfoundland & Labrador.

Under the PSPP, plan members are assured a specific pension payment at retirement, or a lump-sum benefit at termination. The annual pension benefit is predetermined by a formula based on the plan member’s earnings history, years of service in the plan, and age. The lump-sum option is based on the applicable actuarial factors at the time of payment.

• Enrolment and plan membership

  Participating employers are responsible for enrolling permanent, full-time, and seasonal, full-time employees in the Plan as of their date of eligibility. Enrolment in the Plan is mandatory for these employees.

  Members contribute to the Plan based on a percentage of salary earned. Their contributions are matched by you.

• How much do plan members contribute?

  Plan members are required to make contributions toward their pension benefits. As an employer, you are required to match these contributions.  

  Plan member contributions are tax deductible. The Plan is integrated with the Canada Pension Plan in respect to both pensions and contributions. Therefore, the member contribution rate to the Plan on pensionable salary covered by the CPP, is less than the rate on pensionable salary which exceeds the CPP ceiling.  

  Members make the following contributions*:

  • 75% of pensionable earnings up to the year’s basic exemption (YBE) of $3,500 as defined under the Canada Pension Plan (CPP). The YBE is a portion of salary upon which no CPP contributions are required. Please note, however, that the YBE is included in salary for calculating CPP benefits.
  • 95% of pensionable earnings more than the YBE up to and including the year’s maximum pensionable earnings (YMPE). The YMPE is the ceiling on which CPP benefits are based. It changes annually and is set at the beginning of each year.
  • 85% of pensionable earnings more than the YMPE.

  *Effective January 1, 2015

• How much do I contribute as an employer?

  Employers and employees share the overall cost of benefits earned under the Plan. Thus, your contribution is equal to the contribution of your employee.

  It should be noted that there was a three-year period from April 1, 1993, to March 31, 1996, during which the contributions made by certain employers were reduced. To identify the years during which employer contributions may have been reduced, please contact your Human Resources Department or Provident10.

• What constitutes pensionable earnings?

  Contributory or pensionable earnings is any normal remuneration paid by an employer for the normal working period of the employee. This includes regular earnings, retroactive pay, and earnings while on a temporary assignment. Earnings that are not pensionable include overtime pay, bonuses, and payments made on a fee basis.

• May plan members make additional voluntary contributions to the Plan?

  No. There is no provision in the Plan to allow individuals to contribute additional funds to the Plan. Employees who wish to maximize their tax-sheltered retirement arrangements may do so by contributing to a Registered Retirement Savings Plan (RRSP).

• Human Resources, Payroll, and Remittance Data

  Employers are required to submit their payroll data, human resources data, and remittance data files directly to Provident10 on a bi-weekly payroll basis, and within seven (7) days of each pay date. These files are validated and uploaded into our pension administration system and used in determining employee benefits and completing other necessary transactions.