Can group insurance coverage continue after I retire?
Please contact your employer for details concerning eligibility for post-retirement insurance coverage.
Are plan members provided with benefit statements?
Benefit Statements are prepared on an annual basis and distributed to Plan members.
Are there information seminars for plan members?
Yes. Provident10 will participate in information seminars as requested by the employer.
What if I change to part-time employment?
A member whose employment status changes to part-time is no longer eligible to participate in the PSPP. It should be noted that, under Section 40(5) of the Pension Benefits Act, 1997 a refund of contributions is not permitted. A part-time employee is required to participate in the Government Money Purchase Pension Plan (GMPP), provided that the employer is participating in the GMPP. Furthermore, there is a reciprocal arrangement whereby credits may be transferred between the GMPP and the PSPP.
What rate of interest is earned on my contributions to the PSPP?
From 2000 on, interest will be paid in accordance with the Pension Benefits Act, 1997 and regulations. This rate is based on Bank of Canada five-year fixed term, term deposit rates.
Can I stop contributing to the PSPP?
No. If you meet the definition of employee as defined by the Public Service Pensions Act, you must contribute.
Who should I contact if I have specific questions regarding my statement?
If you have specific questions pertaining to your statement, you should contact your employer or Provident10. We can be contacted by email at: [email protected] or by calling 1.709.701.3355. We would encourage members to use our email option.
Do contributions, plus interest, represent my commuted value (CV)?
No, this is only contributions plus interest that you have paid into the plan. The commuted value represents the value of your pension, as of a specific date, and is based on several factors including: your age, pension entitlement, service, interest rates as determined by the Canadian Institute of Actuaries, etc.
Plan members must be vested (i.e., have five years credited service) to be eligible for a CV. Currently, the CV is calculated upon termination of employment and is subsequently presented as an option to plan members.
Why is service in 1989 reflected as a lump sum amount and why is there no pensionable salary?
Due to space limitations, service prior to 1989 is reflected in a lump sum amount and although pensionable salaries are not reflected, they are stored in our database.
What happens if I pass away?
If plan member dies before retirement with at least five years of service:
The principal beneficiary (spouse) can elect to receive: (i) a survivor pension benefit calculated at 60% of plan member’s benefit, or (ii) the commuted value (lump sum payment) of the plan member’s benefit, or, (iii) the commuted value (lump sum payment) of the survivor benefit. If there is no 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 educational facility) 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.