What is the transition period?

  • When pension reform happened in 2014, a five-year transition period began where some plan members could still retire under the pre-reform rules.

    PSPP members who meet the following criteria by December 31, 2019, are eligible to retire under the pre-reform pension eligibility rules and will be grand-parented.

    • A plan member was eligible to retire under pre-reform pension eligibility criteria prior to January 1, 2015, but decided to continue working.
    • A plan member will become eligible to retire under pre-reform pension eligibility criteria by December 31, 2019.
    • A plan member will accrue a minimum of 30 years of pensionable service by December 31, 2019, allowing them to be eligible to retire anytime after reaching age 55.
    • A plan member will accrue a minimum of five years of pensionable service and reach age 60 by December 31, 2019.

    After the transition period ends, post-reform pension eligibility criteria will apply to all PSPP members, except for those who are grand-parented.

What is pension reform?

  • Pension reform is what originally created Provident10 back in 2014, and even though it began years ago, this transition could still impact some members today. The purpose of reform was to have a sustainable defined-benefit pension plan; allow for a reasonable retirement income for public service employees; and to reduce the financial impact on the taxpayers of the province by putting the plan on track to be fully funded within 30 years.

    For more information about pension reform, please visit: https://www.fin.gov.nl.ca/fin/pensions/plans_pspp.html

How could this affect me?

  • The transitional period ends on December 31, 2019. This is a significant change in the Plan and may have major impact on those who are eligible to take advantage. But, the change won’t apply to everyone.

    We want to make sure that you have access to the information you need to make the right decisions for you, your pension, and your retirement. We encourage plan members who want to learn more to get in touch with our team by phone (709.701.3355) or email ([email protected]).

How do I find out if I’m affected?

  • We want to make sure you have access to the information you need to make the right decisions for you, your pension, and your retirement. We encourage plan members who want to learn more to get in touch with our team by phone (709.701.3355) or email ([email protected]).

    If you fall into any of these categories, or if you are unsure, please contact us.

    • If you have less than 30 years of credited service in the PSPP, but you have service in another pension plan that has not been credited in the PSPP.
    • If you will be 60 years old by December 31, 2019, with less than five years of credited service in the PSPP, but you have service in another pension plan that has not been credited in the PSPP.
    • If you have service that was refunded from the PSPP or service in the GMPP that hasn’t been credited in the PSPP.
    • If you are currently or formerly on leave and may need service credited in the plan to qualify for transition period rules.

Will the date my deferred pension is due to become payable change because of pension reform?

  • It’s possible that pension reform will impact the date your deferred pension is due to become payable. We encourage plan members to get in touch with our team by phone (709.701.3355) or email ([email protected]) to discuss their personal circumstance.

Will pension reform impact my medical coverage in retirement?

  • Provident10 does not administer group insurance programs. We recommend that you contact your Human Resources Department or your Group Insurance administrator/provider to determine if your eligibility for medical coverage has changed.

Who do I contact if I have a question?

  • We’re here to help. You can always contact the member service team at Provident10 to find out more. Our contact information is as follows:

    In addition, we’ll be in touch with employers, so your Manager or HR representative can be a great resource for information.

What are survivor benefits?

  • If a plan member dies before retirement with at least five years of service:

    • The principal beneficiary (spouse) can elect to receive:

    a. a survivor pension benefit calculated at 60% of plan member’s benefit, or

    b. the commuted value (lump sum payment) of the plan member’s benefit

    If there is no eligible survivor (principal beneficiary), the estate will receive the lump sum (commuted value) of the plan member’s pension.

    If plan member dies after retirement:

    •  The principal beneficiary (spouse) will receive a survivor pension benefit calculated at 60% of plan member’s benefit. If there is no principal beneficiary, children up to age 18 (or age 24 if in full-time attendance at a recognized education institution) will receive a pension calculated at 60% of plan member’s benefit.
    • There is an “estate provision” whereby if the total pension benefits paid is less than the value of the plan member’s contributions plus interest, the estate will receive the difference.

What should I do if my credited service is inaccurate?

  • If you think your credited service is inaccurate, please contact your participating employer.

Why does my marital status appear on my statement?

  • Your marital status is important when determining your principal beneficiary for your survivor benefits. For more information about survivor benefits, please see question 26 in the Your Survivor Benefits section below.

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