Introducing the Non-Statutory Plan Text

The move from a statutory plan text to a non-statutory plan text is one of the ongoing changes being made to the PSPP as a result of pension reform. As part of pension reform, PSPP pension benefits are now governed by the recently proclaimed Public Services Pensions Act, 2019 (the Act), and the new Plan Text. Your pension benefit provisions have been incorporated into the Plan Text.

For plan members like yourself, there is no difference in benefits. The Plan Text reflects the provisions of the former Act, except for a few provisions which are still contained in legislation. It also encompasses additional provisions which reflect in greater detail how benefits are administered under the Plan.

Certain provisions related to the Plan had to be maintained in legislation, for example:

• Supplementary Pension Benefits: These are benefits that exceed the Income Tax Act maximum limits imposed upon all registered pension plans. These benefits are paid outside of the registered portion of the Plan by Government through the Consolidated Revenue Fund. As such, they are not contained in the Plan Text which only reflects the provisions of the registered portion of the Plan.
• Exemption from the Pension Benefits Act: Jointly sponsored pension plans, such as the PSPP, are not regulated under the Pension Benefits Act and the Act is required to exempt the Plan from the Pension Benefits Act.
• Authority to impose locking-in on benefits transferred outside the Plan: The Plan is exempt from the Pension Benefits Act; however, a mechanism was required to preserve locking-in requirements for benefits transferred outside of the Plan.
• The Act was required to maintain Provident¹⁰ as administrator of the Plan.

As a result of pension reform, sponsorship of the Plan is the Sponsor Body’s responsibility. Government’s responsibility in respect of the Plan now consists of:

• appointing representatives to the Sponsor Body
• appointing representatives to the Provident¹⁰ Board of Directors
• making special payments as provided for under the Plan
• making required contributions as a participating employer
• equally sharing in deficits and surpluses under the Plan with all plan members

Government is also responsible to fund and administer the Supplementary Pension Benefits provided for under the Act.

Any future changes to the Plan Text will be posted to our website. Certain substantial changes may also be communicated to you directly.

The Sponsor Body is comprised of 10-14 individuals representing Government, the Unions, non-union employers, and pensioners. They are responsible for oversight of the Joint Sponsorship Agreement. Their primary responsibility is to make decisions regarding changes in plan benefits. They also approve the assumptions used in actuarial valuations and direct the level of risk appropriate for the Fund’s asset mix. Members of the Sponsor Body are appointed by Government (4-6 members), the Unions (4-6 members), and the Newfoundland and Labrador Public Sector Pensioners Association (1 member). It also includes 1 non-union representative, appointed by Government or a representative association of non-union active members.

The Joint Sponsorship Agreement is the agreement between Government and the Unions to provide for the joint sponsorship of the Plan and establishing a Funding Policy for the Public Service Pension Plan Fund.

Provident¹⁰ is plan administrator and trustee of the PSPP. The framework under which we operate is detailed in Appendix B to the Joint Sponsorship Agreement.

Click here for more information about Provident¹⁰ and the Plan.

The Reform Agreement between Government and the Unions intended for the Plan to be exempt from the Pension Benefits Act (PBA). The Newfoundland and Labrador Superintendent of Pensions has no regulatory oversight over the Plan. Canada Revenue Agency has regulatory oversight of the Plan with respect to compliance with the Income Tax Act, under which it is registered.

Certain protections afforded to pension plans under the PBA, such as locking-in of pension funds and provisions dealing with marriage breakdown, have been built into the Act and the Plan Text.

Supplementary Pension Benefits are benefits that exceed the Income Tax Act maximum limits imposed upon all registered pension plans. These benefits are paid outside of the registered portion of the Plan by Government through the Consolidated Revenue Fund. Supplementary Pension Benefits are administered by Provident¹⁰ on behalf of Government.

We will always work with you to resolve any disagreements amicably and informally. However, should we be unable to reach a resolution, you have the right to a formal appeal to a Review Officer, and then to an Appeal Commissioner. For more information on the appeals process, please click here and view the Appeal Policy under Resources to view the Appeals Process and Procedure.

For helpful information about Provident¹⁰, the Plan, and the Plan Text, check out the About and Resources sections of our website. If you have questions about your pension or the Plan Text, please call 709.701.3355. 1.844.247.1237, or email [email protected].

The Plan Text may be amended by the Sponsor Body in accordance with the requirements under the Joint Sponsorship Agreement and Funding Policy.