Finance
December 30, 2014

Ensuring Sustainable Pensions

Public Service Pension Plan Reform a Major Achievement for 2014

This past year saw historic progress in public service pension reform, made possible by a joint agreement between the Government of Newfoundland and Labrador and the five largest unions representing members of the Public Service Pension Plan. This agreement ensures the plan is sustainable and remains a defined benefit plan. It also provides for joint management and an equal sharing between government and plan members in any future surpluses and deficits.

"With agreements signed, and legislation passed in the House of Assembly with the full endorsement of all parties, we look forward to moving ahead with implementation of the agreements in 2015. Government will continue to work with the unions to finalize joint management through the establishment of the Public Service Pension Plan Corporation as it prepares to take over the administration of the plan. Meanwhile we are continuing efforts to inform those impacted about the details and the changes as it relates to their specific circumstances so that they can make informed decisions that best suits their situation."
- The Honourable Ross Wiseman, Minister of Finance and President of Treasury Board

There are approximately 29,000 contributing plan members in the Public Service Pension Plan and approximately 17,500 pensioners. The pension plan changes will come into effect on January 1, 2015, and include increases to contribution rates, and changes to pension eligibility and eligibility for group health and life insurance post-retirement benefits.

For more information, please visit the Human Resource Secretariat website, www.exec.gov.nl.ca/exec/hrs/pensions/plans_pspp.html. Inquiries can be emailed to pspp@gov.nl.ca. Individuals can also call 709-729-3600, or toll-free 1-844-373-9848.

QUICK FACTS

• 2014 saw historic progress in public service pension reform, made possible by a joint agreement between the Government of Newfoundland and Labrador and the five largest unions representing members of the Public Service Pension Plan.
• This agreement ensures the plan is sustainable and remains a defined benefit plan. It also provides for joint management and an equal sharing between government and plan members in any future surpluses and deficits.
• The pension plan changes will come into effect on January 1, 2015, and include previously announced increases to contribution rates, and changes to pension eligibility and eligibility for post-employment group health and life insurance benefits.

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Media contact:

John Tompkins Director of Communications Department of Finance 709-729-6830, 728-7762 jtompkins@gov.nl.ca

2014 12 30                              9:45 a.m.