Sustainability of the Fund

At Provident10, our role is to oversee the management of the Public Service Pension Plan (PSPP). Since 2015, we have led the transformation and financial management of the Fund, improving the overall health of the pension plan in that timeframe. 

Looking ahead, we must continue to adapt to the changing financial landscape to ensure continued success and sustainability for our members. As part of that, there are important on-going considerations and uncertainties that can impact the Plan’s funded status, including, an aging Plan member profile, the global investment and economic environment, continued effects of the pandemic, and heightened global political tensions. 

The PSPP Funding Policy is designed to guide the Plan towards maintaining a fully funded status. This is to ensure retirement security for all our members. The policy lays out defined thresholds that must be met before implementation of any Plan improvements are allowed and identifies whether changes are required to improve Plan funding.  

Growth of the Fund is generated through three main components:

1. member and employer contributions
2. investment earnings, and
3. repayment of a promissory note from the Government of Newfoundland and Labrador.

The promissory note is currently 20% of the total net assets of the Fund, and provides steady cashflow and liquidity to the Fund, which is beneficial in providing stability to the funded status. The Plan’s financial standing is shown through funding and financial statement valuations. Each of these funding valuations helps to ensure the Plan remains secure and continues to be on the path to full funding.