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Changes permit joint trusteeship of the plan in the future
Halifax (27 April 2010) – The new NDP government in Nova Scotia announced major changes in the Public Service Superannuation Plan (PSSP) in its 2010-11 budget on April 6. It is intended to ensure that the plan is funded at approximately 100 percent by January 1, 2011.
For all active and retired members, indexing will be guaranteed to be at 1.25 percent of each of the next five years. After that period, indexing will only be provided depending on the financial health of the plan. This will mean indexing will only be provided if the plan is projected to be at least 100% for each subsequent five-year period.
For new employees starting on or after April 6, 2010, members can only receive their full pension benefit if they are 55 and their age plus years of service must be at least 85 (Rule of 85 instead of Rule of 80), and survivor benefits will be reduced to 60 percent of the pension benefit (instead of 66 2/3 percent after a five-year guarantee period. The changes also permit a transfer from the Minister of Finance being the sole trustee to joint trusteeship in the future.
According to Joan Jessome, President of the Nova Scotia Government and General Employees Union (NSGEU/NUPGE), “We know that these changes, although unpleasant, are necessary for the stability of the plan. We are not happy about some of our benefits being decreased. But the number one thing that needed to be done is to make sure that the plan is here for the long run and that it is stabilized”.
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The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE