Frequently Asked Questions
The following questions and answers are for information only and do not cover every detail of every question. If there is any discrepancy between this information and the Public Service Superannuation Act, the provisions of the Pubic Service Superannuation Act and Regulations will determine the entitlements and options available. To assist you, the questions and answers are under the following categories:
General
Contributions
Terminations
Retirement
Survivor Benefits
General
Who manages the Fund's investments?
The Minister of Finance is the Trustee of the Fund and is responsible for investing the Fund's assets. The actual investment function is carried out by staff of the Nova Scotia Pension Agency.
What is an actuarial valuation?
An actuarial valuation measures the value of the pension benefits earned to the valuation date by each member of the plan plus the value of pensions still to be paid to pensioners. It compares this with the value of the plan's assets to determine whether the plan has a surplus or an unfunded liability. It also determines whether the contributions by members and employers are sufficient to fund the current level of benefits. An actuarial valuation is carried out by a professional known as an actuary, who must be a Fellow of the Canadian Institute of Actuaries.
Are financial statements available to members?
Yes. The Nova Scotia Public Service Superannuation Fund Financial Statements are available on this website by clicking on the following link Financial Statements.
Who is eligible to join the Public Service Superannuation Plan?
Many individuals employed in the public service of the Province of Nova Scotia are eligible to be members of the Public Service Superannuation Plan (PSSP). Some employees in our list of employers may currently be eligible or may have been eligible in the past. Please click here for our list of employers under the PSSP.
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Contributions
What does vesting mean?
It means you have earned the right to a pension benefit. Under the PSSP a member is vested if one of the following is true:
- you have at least two years of pensionable service, some of which was after January 1, 1988;
- you have at least five years of pensionable service some of which was after January 1, 1986 (if no service after January 1, 1988);
- you have at least ten years of pensionable service (if no service after January 1, 1986).
What does commuted value mean?
The commuted value refers to the present value of the deferred pension to which a member is entitled. The commuted value calculation takes into account the amount of the benefit, how far away the member is from receiving it, the member's age, and assumptions regarding mortality and interest rates. The assumptions are those recommended by the Canadian Institute of Actuaries for the computation of commuted values.
Are my contributions tax-deductible?
All of your regular contributions to the Public Service Superannuation Plan are fully tax-deductible. This means they can be claimed as deductions from income under the Income Tax Act. Within certain limits your contributions to purchase prior service may also be tax deductible.
At what rate do I contribute to my pension plan?
Contribution rates are set by the Minister of Finance. There are two rates of contribution. There is a lower rate, 8.4%, payable on salary up to and including the Year's Maximum Pensionable Earnings (YMPE), and a higher rate, 10.9%, payable on salary in excess of the YMPE. The YMPE is a figure established by the Canada Pension Plan (CPP) on January 1 of each year.
Example # 1: (salary greater than YMPE): The YMPE for 2012 is $50,100. If you earn $60,000 in 2012, your contributions to the Public Service Superannuation Plan would be $5,287.50, and calculated as follows:
8.4% X $50,100 = $4,208.40
10.9% X ($60,000 - $50,100) = $1,079.10
Total Annual Contributions = $5,287.50
Example # 2: (salary less than YMPE): If you earn $35,000 in 2012, your salary would be less than the YMPE of $50,100. Therefore, your annual contributions would be $2,940.00, calculated as follows:
8.4% X $35,000 = $2,940.00
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Terminations
What are my options on termination?
Option # 1 – Reduced pension payable upon termination
If you are age 55 or above you may be entitled to receive a reduced pension payable upon termination.
Option # 2 – Deferred pension – unreduced
You may leave your contributions in the pension fund and wait until you become eligible for an unreduced pension. The pension eligibility rules are contained in the FAQ in the Retirement section.
Option # 3 – Deferred pension – reduced
You may leave your contributions in the pension fund and wait until you become eligible for a reduced pension payable at age 55. The pension eligibility rules are contained in the FAQ in the Retirement section.
Option # 4 – Commuted Value transfer
The commuted value of all your pensionable service may be transferred to a locked-in RRSP subject to a maximum amount allowable under the Income Tax Act. Any excess of commuted value above the maximum allowed may be paid into a non locked-in RRSP or paid directly to you net of income tax.
Option # 5 – Partial refund plus post 1987 commuted value transfer to an RRSP
Your contribution prior to 1988, plus interest, may be paid directly to you net of income tax, or transferred to a non locked-in RRSP; plus the commuted value of your pensionable service after 1987 must be transferred to a locked-in RRSP.
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Retirement
When am I eligible for a pension?
Amendments to the Public Service Superannuation Act have changed retirement eligibility rules for employees who start working for the Province of Nova Scotia or a participating employer on or after April 6, 2010.
If you started work prior to April 6, 2010 you may be eligible to retire and receive a pension when you satisfy one of these rules:
- Rule of 80 - You must be at least 50 years of age, and your age plus years of service must equal at least 80;
- Age 60 Rule - You must be at least 60 years of age and have at least 2 years of service;
- Age 55 Rule - You must be at least 55 years of age and have at least 2 years of service (this is a reduced pension);
- Attainment of 35 years of service.
If you started work on or after April 6, 2010 a Rule of 85 applies to you. You may be eligible to retire and receive a pension when you satisfy one of these rules:
- Rule of 85 (NEW) - You must be at least 55 years of age, and your age plus years of service must equal at least 85;
- Age 60 Rule - You must be at least 60 years of age and have at least 2 years of service;
- Age 55 Rule - You must be at least 55 years of age and have at least 2 years of service (this is a reduced pension);
- Attainment of 35 years of service.
How is my pension calculated?
Pre 65
2.0% x Best 5yr average salary x pensionable service
At 65
1.3% x Best 5yr average salary up to YMPE x pensionable service
Plus
2.0% x Best 5yr average salary above YMPE x pensionable service
How is my pension paid?
Pensions are paid monthly starting at the end of the month following the month in which you retire. Your pension will be automatically deposited into an account at the financial institution of your choice three banking days before the end of each month.
Is my pension indexed?
Please click here for information regarding indexing (Cost of Living Adjustment).
Who is my spouse?
The pension plan recognizes either a legal spouse or a common-law spouse; the former takes precedence over the latter. A pension is only payable to a common-law spouse if the relationship has been in existence for at least three years.
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Are the provisions for my spouse and children after I die?
Amendments to the Public Service Superannuation Act effective April 6, 2010 have resulted in changes to survivor benefit rules. If you were an employee with the Province of Nova Scotia or a participating employer prior to April 6, 2010, your survivor benefits remain the same. If you became an employee on or after April 6, 2010 there are new survivor benefit rules for you. These changes are noted below.
Surviving Spouse If You Die in Service
If you started work prior to April 6, 2010 and you die in service, your surviving spouse would be entitled to receive 100% of the pension benefit for a period of five years that you would have been entitled to receive if you were eligible for retirement. After the end of the five-year guarantee period, your spouse would receive 66 2/3% of your pension benefit, payable for life.
Note: If you first started work on or after April 6, 2010, the survivor entitlement is the same except at the end of the five-year guarantee period, your spouse would receive approximately 60% of your pension for life.
If You Die During the 5-Year Guarantee Period
If you die within five years after retiring, your surviving spouse would receive 100% of your pension benefit for the rest of the five-year guarantee period.
If You Die After the End of the Five Year Guarantee Period
If you started work prior to April 6, 2010 and you die after the 5-year guarantee period, your surviving spouse would be entitled to receive 66 2/3% of the pension benefit that you were receiving, payable for life.
Note: If you started work on or after April 6, 2010 and die after the end of the five-year guarantee period, your spouse will receive approximately 60% of your pension, payable for life.
Surviving Children
If you started work prior to April 6, 2010, surviving children are eligible to receive 10% of the pension benefit up to 18 years of age (or 25, if in full-time attendance at an educational institution). If there are more than 3 eligible children, 33 1/3% of the member’s pension benefit is divided equally among them. Note that during the 5-year guarantee period, children’s benefits are deducted from the 100% benefit paid to a surviving spouse. If there is no surviving spouse, eligible surviving children would be entitled to share the 66 2/3% spouse’s benefit.
Note: If you started work on or after April 6, 2010, surviving children are eligible to receive 10% of the pension benefit up to 18 years of age (or 25, if in full-time attendance at an educational institution). If there are more than 4 eligible children, 40% of the member’s pension benefit is divided equally among them. Note that during the 5-year guarantee period, children’s benefits are deducted from the 100% benefit paid to a surviving spouse. If there is no surviving spouse, eligible surviving children would be entitled to share the 60% spouse’s benefit.
Surviving Dependant
Survivor benefits may also be available to a person related to you who was dependent on you by reason of mental or physical infirmity. If you started work prior to April 6, 2010 and have no spouse or children, but have an eligible dependant, the dependant is entitled to receive the 66 2/3% spouse’s benefit.
Note: If you started work on or after April 6, 2010 the entitlement to an eligible dependant would be 60% of the spouse’s benefit.
No Surviving Spouse, Children or Dependants
If you die in service and are not survived by a spouse, children, or dependants, a refund of your pension contributions plus interest will be paid to your estate. If you retire and then die before receiving pension payments at least equal to your pension contributions plus interest, a refund of the difference will be paid to your estate.
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