There has been an important policy change to how Government Money Purchase Plan (GMPP) service is recognized in the Public Service Pension Plan (PSPP) that will impact the ability of some plan members to qualify under the pre-reform pension eligibility rules which ended on December 31, 2019.

Active PSPP members with GMPP service are entitled to transfer that service to the PSPP. If you have service in the GMPP that you haven’t transferred to the PSPP, you can use your GMPP account balance to purchase service in the PSPP on an actuarial basis. If your GMPP account balance does not cover the actuarial cost of recognizing all your GMPP service, a portion of the service will be recognized in the PSPP.

Under a previous policy, you were allowed a one-time opportunity to contribute the amount required to purchase your entire period of GMPP service (converted to effective full-time service under the PSPP). If you chose not to purchase the existing shortfall at the original time of transfer, you wouldn’t be able to make the purchase another time.

As of February 14, 2020, this policy has changed. Plan members are now allowed to purchase any eligible GMPP service that was not recognized with the original transfer. To purchase the missing service, you need to meet the following criteria:

  1. your initial application to transfer your GMPP service to the PSPP was received by Pensions Division at the Government of Newfoundland and Labrador or Provident10 on or after October 26, 2000;
  2. you are an active member in the PSPP; and
  3. your employer can confirm or has confirmed that the period of service to be purchased is eligible pensionable service under the PSPP (i.e. details of your hours of work must be available).

This policy change will be available until further notice and will be of interest if you may have qualified for grandparenting under the pre-reform pension eligibility rules. If your original GMPP transfer occurred prior to December 31, 2019, any subsequent purchase of service relating to the original transfer will qualify towards grandparenting under the pre-reform pension eligibility criteria.

If you wish to purchase your additional GMPP service, please work with your employer to complete the GMPP Purchase of Service request form, available from our Member Services team.

If you have any questions, our Member Services teams is available to help Monday to Friday, 8:30 am to 5:00 pm, by phone at 709.701.3355, toll-free at 1.844.247.1237, or by email at [email protected]

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