What are Supplementary Pension Benefits?

  • 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.

What can I do if I don’t agree with a decision made about my pension benefits?

  • 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 to view the Appeals Process and Procedure.

Who do I contact if I have questions?

  • 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].

Who has authority to change or amend the Plan?

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

What information is reflected in the table “For the period January 1, 2019 to December 31, 2019”?

  • The table outlines the number of months of service you worked and received credit for in the Plan during the year; the pensionable salary you earned during the year; and the amount of pension contributions you made to the plan during the year. These contributions do not include any contributions made to the Plan by your employer but may include purchases or transfers of service completed in 2019.

How is the rate of interest on contributions determined?

  • The rate of interest credited on member contributions is based on the average five-year personal fixed term, chartered bank deposit rates over the 12 months ending in October, as published by Statistics Canada.

Why are there three different accrual rates listed on my statement?

  • If you were a member of the PSPP prior to April 1, 1996, your accrual rates may have been impacted. Below are the accrual rates applicable for each period:

    • Service in the PSPP prior to April 1, 1993: accrual rate 2.0% per year
    • April 1, 1993 to March 31, 1994: accrual rate 1.1%
    • April 1, 1994 to March 31, 1995: accrual rate 1.8%
    • April 1, 1995 to March 31, 1996: accrual rate 1.8%
    • All years beyond March 31, 1996: accrual rate 2.0%

Why is my service broken down into indexed service and non-indexed service?

  • Indexing is an annual pension increase equal to 60% of the national Consumer Price Index (CPI), to a maximum annual increase of 1.2%.

    One of the changes agreed to during pension reform was the suspension of the indexing provision in the Plan. The suspension meant that all service accrued in the Plan up to December 31, 2014, would be indexed and used to calculate the indexed portion of your pension when the indexing benefit is payable at age 65. All accrued service after 2014 will not be included in the calculation of your indexed pension.

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 who became eligible to retire under pre-reform pension eligibility criteria by December 31, 2019.
    • A plan member who accrued 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 who accrued a minimum of five years of pensionable service and reached age 60 by December 31, 2019.

    After the transition period ended on December 31, 2019, post-reform pension eligibility criteria applies 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

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