Did you know?


Did you know that the Public Service Pension Plan is the largest pension plan in Newfoundland and Labrador with over 55,000 members?

Bridge Benefit

Because the Canada Pension Plan (CPP) is integrated with the Plan and, provided that you retire before age 65, your pension will include a bridge benefit. The bridge benefit is payable until the end of the month in which you reach age 65. It is also referred to as the “CPP offset”.

The bridge benefit is intended to supplement your pension income until you start receiving CPP benefits. Please note that although you may begin receiving CPP benefits as early as age 60, the bridge benefit will not be removed until the first day of the month following the month in which you reach age 65.

The bridge benefit is based on the lesser of your highest average salary (HAS) or the average of the year’s maximum pensionable earnings (YMPE) for the 36 months immediately preceding the month of your retirement. The current formula used to determine your bridge benefit is:

  • 0.6% x three-year HAS (or three-year average of YMPE) x number of years of service

Note that the maximum number of years of service used to determine your bridge benefit is 35 years.

The reduction in your pension is calculated at retirement, based on the following formula:

  • 0.6% for each year of service (to a maximum of 35 years) of the lesser of your HAS and the YMPE average for the 36 months immediately preceding the month of retirement

Inflation Protection (Indexing)

Pension benefits earned through pensionable service credited in the Plan on or before December 31, 2014, receive indexing in retirement. This portion of your pension will increase every October 1st for retirees who have reached age 65. The annual increase is equal to 60% of the increase in general inflation in Canada (CPI), with a maximum possible annual increase of 1.2%.

Pension benefits earned through pensionable service credited in the Plan on or after January 1, 2015, do not receive guaranteed indexing in retirement.

Frequently Used Resources


resource icon

Calculator

Interested in learning more about the value of your pension and how it will mature over time? Our calculator is an easy way to do this.

resource icon

2017 Annual Report

In our 2017 Annual Report, you will find important information about Provident10, the Plan, fund performance, and our financial statements.

Not finding what you’re looking for? Ask us a question.

Search for an answer using our list of FAQs or reach out to us directly with your question.

FAQ Contact Us