Nova Scotia Pension Agency > Frequently Asked Questions

Frequently Asked Questions

The following questions and answers are for general information only and do not cover every detail of every question. If there is any discrepancy between this information and the Nova Scotia Teachers’ Pension Act, the provisions of the Teachers’ Pension Act and Regulations will determine the entitlements and options available. To assist you, the questions and answers are under the following categories:

General
Contributions
Pensionable Service
Terminations
Retirement

General

1. Is there an Appeals Procedure in place for members and pensioners of the Nova Scotia Teachers' Pension Plan?

Yes. The Nova Scotia Pension Agency has made appeal provisions for active and retired members of the Nova Scotia Teachers' Pension Plan.

If a member wishes to dispute, for example, the calculation of his or her pension benefit, or a decision made by the Agency regarding the purchase of service, that member may initiate an appeal. Click here to download the Appeals Procedure.

As well, Joan Ling of the Nova Scotia Teachers' Union will assist active and retired members of the Pension Plan during the appeals process. Joan can be reached at (902)-477-5621, or toll free at 1-800-565-6788, or by email at jling@nstu.ca.

2. Who manages the Fund's investments?

The Teachers' Pension Plan Trustee Inc. 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.

3. What is an actuarial valuation?

An actuarial valuation measures the value of the pension benefits earned to the valuation date (December 31 of each year) 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 the Province 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. The annual valuation of the Teachers' Pension Plan is carried out as at December 31 each year. The report is usually available by June 30 and is posted to this web site as soon as it is approved by the Teachers' Pension Board of Trustees.

4. Who audits the Fund's Financial Statements?

The Fund's Financial Statements are audited each year by an independent external audit firm.

5. Are financial statements available to members?

Yes. The Nova Scotia Teachers' Pension Plan Financial Statements are available on this website by clicking the following link: Financial Statements.

Contributions

1. Do all teachers pay into the Teachers’ Pension Plan?

All Nova Scotia licensed teachers who are employed in the public school system or by certain other employers (Atlantic Provinces Special Education Authority, Nova Scotia Teachers' Union & Canadian Teachers' Federation) are required as a condition of employment, to be members of the Teachers’ Pension Plan. This includes both permanent and substitute teachers. Instructional staff at the Nova Scotia Community College are also required to be members except for those who were previously members of the Public Service Superannuation Plan. The Province matches contributions made by public school teachers. Other employers match their employees' contributions.

2. How long must I contribute to the Teachers’ Pension Plan?

As long as you are employed as a teacher you must contribute to the plan; however, you are not permitted to make contributions after you have 35 years of service.

Pensionable Service

click here for Purchasing Pensionable Service Brochure

1. Can I purchase service?

Purchases of additional service are allowed under the Teachers’ Pension Act and Regulations, but are also subject to the rules of Canada Revenue Agency (CRA). A teacher is eligible to purchase service under two categories: 1) authorized leaves of absence and 2) repayment of a refund. For further details please see Plan Provisions on this site.

2. Does the pension plan have a Reciprocal Transfer Agreement in place?

click here for Reciprocal Transfers Brochure
There are a number of reciprocal transfer agreements amongst the Teachers’ Pension Plan, the Public Service Superannuation Plan and teacher pension plans across Canada. For a list of the participating parties see the Reciprocal Transfer Agreements section of this website or contact the Nova Scotia Pension Agency.

Terminations

1. What options are available to me if I terminate?

If you terminate, regardless of your service, you always have the option of leaving your contributions in the pension plan. If you have less than two years of service, you may apply for a refund of your contributions plus interest. This may be paid directly to you less income tax, or may be rolled over tax free to an RRSP. If you have over two years of service the options available to you depend on your age. If you are 55 years of age or older, you cannot transfer to an RRSP or receive a refund, you must take a pension - either immediate or deferred. If you are less than 55 years and choose not to take a deferred pension you must transfer the value of your post-1987 service to a locked-in RRSP. You may also transfer your pre-1988 contributions or have them paid to you directly less income tax.

2. If I die in-service, what happens to my pension?

If you die and have over two years of pensionable service, your spouse will be entitled to a pension on the first of the month following your month of death. He/she would receive 60% of the pension that you would otherwise have received, had you been awarded a pension at the time of death. Children under 18 years of age would each receive 10% of your pension (to a maximum of 40%).

Enhanced Survivor Pension - This survivor pension option can be chosen by the member within three months of his/her retirement date. If you elect an option and die before your retirement date, the election is still valid. Please click on the following link for complete details on this option: Plan Provisions, then click on Survivor Pension Options.

Retirement

1. Can I receive a pension before age 65?

Retirement at age 65 is referred to as Normal Retirement. In order to retire prior to age 65 you must meet one of the following criteria:

age equal to at least 60 and years of service equal to at least 10
age equal to at least 55 and age plus service equals 85 or more
age equal to at least 55 and service equal to at least 20 years (this is a reduced pension)
age equal to at least 55 and service equal to at least 10 years (this is a reduced pension)
age equal to at least 55 and service equal to at least 2 years (this is a reduced pension)
age equal to at least 50 and service equal to at least 30 years (this is a reduced pension)
attainment of 35 years of service

2. What if I postpone my retirement?

A member who is employed after the normal retirement date (i.e. age 65) must contribute to the pension fund until the termination of that employment or until the member reaches age 71, whichever occurs first. Payment of a service pension must commence no later than December 31 of the year in which the employment terminates or the member attains age 71.

3. How much service must I have to be eligible for a pension?

You must have no less than 2 years of pensionable service. If all your service is before January 1, 1988 you require 10 years of service.

4. Must I apply for the pension?

Yes, one of the most important things to remember about your pension is that you must apply for it. It is not paid automatically upon retirement. It takes at least one month to put a pension into pay, so apply early - three months in advance if possible.

For your convenience, you may download all of the forms from our forms page.

5. What is the Bridge Benefit?

While you were a contributor to the plan you paid contributions at two rates: a lower rate on your salary up to the Year's Maximum Pensionable Earnings (YMPE) and a higher rate on your salary above that. Similarly, your pension is calculated at two rates: 1.3% on your average salary up to the YMPE and 2% on your average salary above the YMPE. This is your lifetime pension, i.e. it is paid from the point of your retirement for as long as you live. In addition, however, the pension plan pays you a bridge benefit. As the name suggests, this is intended to bridge the period from retirement to age 65 when you should be eligible for CPP. When you turn 65, the bridge benefit ceases to be paid.

6. What deductions are made from pensions?

Income tax is the only mandatory deduction from your pension. The amount is based on the TD1 Canada Revenue Agency Personal Tax Credit Return which you file with us when you retire.

7. What about health care?

The Province pays the entire cost of health insurance for retired teachers. To continue your health care coverage, you must send the Nova Scotia Teachers' Union Group Insurance Form (on the forms page) to Johnson Incorporated.

Johnson Incorporated
P.O. Box 9620
Suite 400
2701 Dutch Village Road
Halifax, N.S. B3K 5S4
453-1010 or Toll Free 1-800-588-3885.

8. May I work after being granted a pension? Do I contribute to the plan?

Yes, you may work for up to 69½ days in a school year after you retire without affecting your pension. On day 70, your pension will cease. It will resume when you stop teaching. In other words, you lose 1/195th of your pension for each day that you work more than 69½ days.

You may not contribute to the pension fund after you have accumulated 35 years of service or reached age 71.

9. Is there a provision to adjust pensions in line with increases in the cost-of-living?

Yes. Please click here for information on the CPI Minus 1% Method; and
here for the Variable Indexing Method.

10. Is my pension affected by marriage breakdown?

If you become divorced, your pension may be affected. You should contact one of our Client Services Consultants for information.

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