Plan Provisions
Membership
Contribution Rates
Pension Eligibility & Formula
Purchases
Survivor Benefits
Designation of Beneficiary
Cost of Living Adjustment for Pensioners
Most people who are employed in the public service of the Province of Nova Scotia are members of the Public Service Superannuation Plan (PSSP). This includes permanent employees, probationary employees, employees who are designated by Order-in-Council and contract employees if the contract specifies pension plan membership.
Effective April 13, 2008, seasonal employees who are members of the Nova Scotia Government and General Employees Union (NSGEU), and who work for a specific period of more than four months in a season, are eligible for membership in the Public Service Superannuation Plan.
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Contribution rates are set by the Minister of Finance. There are two rates of contribution. Effective July 5, 2009 the lower rate, 8.4%, is payable on salary up to and including the Year's Maximum Pensionable Earnings (YMPE), and the higher rate, 10.9%, is 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 2010 is $47,200. If you earn $50,000 in 2009, your contributions to the Public Service Superannuation Plan would be $4,270.00, and calculated as follows:
8.4% X $47,200 = $3,964.80
10.9% X ($50,000 - $47,200) = $305.20
Total Annual Contributions = $4,270.00
Example # 2: (salary less than YMPE): If you earn $35,000 in 2010, your salary would be less than the YMPE of $47,200. Therefore, your annual contributions would be $2,940.00, calculated as follows:
8.4% X $35,000 = $2,940.00
Note: Prior to July 5, 2009 the contribution rates were 7.4% and 9.6%, below and above the YMPE, respectively.
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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.
If all your pensionable service was before 1988, the requirements are as follows:
- age equal to at least 55 and age plus years of pensionable service equal to at least 85
- age equal to at least 60 and years of pensionable service equal to at least 5 years
- age equal to at least 65 and years of pensionable service equal to at least 5 years
If all of your pensionable service was before April 1, 1986, the requirements are as follows:
- age equal to at least 60 and years of pensionable service equal to at least 10
- age equal to at least 65 (if you do not have any pensionable service after June 4, 1980, you must have at least 5 years of pensionable service in total)
If you are under age 65 when you retire, the pension you receive will include your lifetime pension plus a bridge payment. This bridge payment will cease when you reach age 65, when it is assumed that you will be receiving Canada Pension. Your basic pension including your bridge payment but not including indexing:
- 2% x (highest 5-year average pensionable salary) x (years of pensionable service)
The bridge payment, not including indexing, is calculated approximately as follows:
- 0.7% x (lesser of highest 5-year average pensionable salary and average YMPE during that 5-year period) x (years of pensionable service after 1965)
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click here for Purchasing Pensionable Service Brochure
Purchases of additional service are allowed under the Public Service Superannuation Act and Regulations, but are subject to the rules of Canada Revenue Agency (CRA).
You may be eligible to purchase a leave of absence by paying the equivalent of the contributions, accumulated with interest, that you would have made to the fund had you been a member during the period or periods in question.
Prior service previously refunded is calculated based on the actual refunded amount plus accrued interest to date of application.
See section on containing information on Reciprocal Transfer Agreements.
How to Make Payment
If service is recognized under the pension plan as a purchasable item, payment may be made by either a personal cheque (made out to the Minister of Finance) or a transfer of funds from an RRSP. CRA places certain restrictions on how this can be done. For further information regarding the purchase of prior service and eligibility, please contact the Nova Scotia Pension Agency.
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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.
Survivor Benefits for Two Surviving Spouses
In the event of a Plan member’s death, there is now provision for survivor benefits to be paid to two persons who satisfy the definition of spouse under the Act. We use an example here to explain this new clause. Example: A Plan member is legally married, and becomes separated from his or her spouse. They are no longer cohabiting in a conjugal relationship. Subsequently, the Plan member enters into a common-law relationship with a second spouse, while still legally married to the first.
In the event of a Plan member’s death, there is now provision for survivor benefits to be paid to two persons who satisfy the definition of spouse under the Act. We use an example here to explain this new clause. Example: A Plan member is legally married, and becomes separated from his or her spouse. They are no longer cohabiting in a conjugal relationship. Subsequently, the Plan member enters into a common-law relationship with a second spouse, while still legally married to the first.If the Plan member dies, both the legal spouse and the common-law spouse are entitled to pension benefits, the amount of which will depend on the period of time each cohabited with the Plan member in a conjugal relationship while the member was contributing to the Plan. Any payment that would have been made to a single surviving spouse of the Plan member would be apportioned between the two spouses. Let’s say that the Plan member cohabited with the legal spouse in a conjugal relationship for 10 years, and the common-law spouse for 5 years. The legal spouse would be entitled to 2/3 of the payment to be made to a surviving spouse. The common-law spouse would be entitled to 1/3 of the payment.
Key rules: - The Plan automatically provides benefits to a legal spouse. A second spouse must provide evidence of cohabitation in a conjugal relationship with the Plan member within 12 months of the death of the Plan member. If this 12 month deadline is not met, the second spouse has no claim to benefits;
- The spousal benefits of two spouses combined cannot exceed the amount that would have been payable if the Plan member died leaving a single surviving spouse;
- surviving spouse must provide evidence in writing of their cohabitation in a conjugal
relationship with the Plan member for the period in question (i.e. affidavits);
- To qualify for benefits a common-law spouse must have been living with the Plan member at the time of the Plan member’s death;
- The period of cohabitation for common-law spouse relationship must have been at least three years;
- If there is a division of pension upon marriage breakdown, please contact us.
Note: These are general guidelines only. For information as to your specific situation, please always contact us.
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Designation of Beneficiary
There is provision in the Public Service Superannuation Act for a Plan member to designate a beneficiary eligible to receive pension benefits upon the Plan member’s death. The designated beneficiary is entitled to receive a refund of member contributions plus interest (less any pension payments that have already been made, if applicable). If you do not designate a beneficiary, this refund will be paid to your estate.
Please note: you are NOT required to designate a beneficiary, this is completely OPTIONAL. If you choose to, however, the procedure is outlined below. Any Plan member can designate a beneficiary, BUT it cannot be any of the people listed in the Payment Order of Priority below. None of the people in this list can be designated as a beneficiary as they are already automatically eligible to receive a pension upon your death in the order that they appear. To designate a beneficiary you must choose someone other than those listed. The EXCEPTION here is adult children who are older than 18 years of age and are not in full time attendance at a recognized educational institution – they may be designated as a beneficiary.
Payment Order of Priority
Upon your death a pension is made payable to the following categories of people in this order – these people cannot be designated as a beneficiary:
- Spouse, and eligible children if any;
- If no spouse, then spouse’s benefit goes to eligible children;
- If no spouse or children, then to a related person who was dependent on you by reason of mental or physical infirmity.
Children who are automatically eligible to receive survivor:
- Children up to 18 years of age; and
- Children between 18 and 25 years of age if they are in fulltime attendance at a recognized educational institution.
Procedure for Designating a Beneficiary
You may download the Designation of Beneficiary Form from our Forms page, complete it and return to us. Alternatively, please contact us and we will mail a copy to you.
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