The Public Service Pension Plan (the Plan) is a contributory defined benefit pension plan covering full-time employees of the Government of Newfoundland and Labrador, the Legislature and various Crown corporations, agencies, and commissions created by or under a statute of the Province.
For more information about the Plan, please review our Plan Booklet.
Defined Benefit Plan
The Plan is a defined benefit (DB) pension plan, provided to current and former public service employees in Newfoundland & Labrador.
Under the Plan, plan members are assured a specific pension payment or a lump-sum benefit at retirement or 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.
The primary objective of the Plan is to help plan members prepare for and enjoy retirement.
Benefits of Membership
Being a member of the Plan carries many benefits. Chief among them is the security afforded to plan members by being part of a defined benefit pension plan.
Upon retirement, plan members are entitled to receive a predictable, lifetime pension income so you can enjoy yourself throughout your retirement.
With Provident10, your pension is in good hands and your future secure. We have a strategic and sophisticated approach to managing Plan assets that maximizes returns within an acceptable level of risk, and that will ultimately support benefit security.
You can rest assured today because we are focused on your tomorrow.
Eligibility for Membership
Who is eligible to join the Plan?
The Plan covers all full-time employees of Government and other participating employers. Please click here for a list of participating employers.
Do I have to join the Plan?
If you are employed on a full-time basis (including full-time seasonal workers) with a participating employer you must join the PSPP.
When may I join the Plan?
You will generally join the Plan on the date that you are hired on a full-time basis. Specific circumstances include:
- All eligible full-time employees must join the Plan from the date of employment.
- Temporary employees, whose employment period will involve four calendar months of continuous service, must join the Plan on the date of hire. Temporary employees, initially hired for less than four months, must join the Plan immediately upon the employer’s determination that the employment period will extend in to the fourth calendar month.
- Seasonal (full-time) workers must join the Plan from the date of employment.
- Employees who at one time had an option whether to join the Plan and, elected not to do so, may enroll at any time and, have the option of purchasing all eligible prior service.
What constitutes ineligibility?
If you are employed in any of the following categories you do not qualify for membership in the Plan:
- Part-time employee
- Employee of Commission or Inquiry
- Temporary employee hired for a period that does not involve four calendar months of continuous employment
- Student (includes nursing and medical student)
- Contractual employee (unless the employment contract specifies that the employee must participate in the Plan)
- Casual employee
Your Contributions
As a member of the Plan you are required to make contributions toward the funding of your pension benefits. These contributions are tax deductible. The Plan is integrated with the CPP in respect of both pensions and contributions. Therefore, your 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.
Effective January 1, 2015, plan members make the following contributions:
- 10.75% of pensionable salary up to the year’s basic exemption (YBE) as defined under the 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.
- 8.95% of pensionable salary in excess of the YBE up to and including the years’ 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.
- 11.85% of pensionable salary in excess of the YMPE.
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Contribution formula: |
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Assume YBE is: |
$3,500 |
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Assume the 2022 YMPE is: |
$64,900 |
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Assuming pensionable salary is $70,000, pension contributions will be: |
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10.75% x $3,500 |
$376.25 |
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8.95% x $61,400 |
$5,495.30 |
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11.85% x $5,100 |
$604.35 |
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Total annual pension contribution |
$6,475.90 |
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Assuming pensionable salary is $45,000, pension contributions will be: |
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10.75% x $3,500 |
$376.25 |
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8.95% x $41,500 |
$3,714.25 |
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Total annual pension contribution |
$4,090.50 |
Pension Plan Booklet
More information about the Plan can be found in our Plan Booklet.
Annual Pension Benefit Statement
PSPP pension benefit statements are distributed annually and provide pension information as of December 31st of the previous year. The information contained in your statement is based on records provided to Provident10 by your employer.
It is very important for you to review your statement each year and to contact Provident10 if there are any errors or discrepancies. If you have any questions regarding your annual pension statement, you are encouraged to contact Provident10 at 709.701.3355 or by email at [email protected].
To learn more about your Annual Pension Statement, click here.