Retirement Planning Session
Public Service Shared Risk Plan (PSSRP)
2015
Pensions & Employee Benefits Division (PEBD)
Department of Human Resources
http://www.gnb.ca/pssrp
http://www.gnb.ca/pssrp
Disclaimer
This presentation is for information purposes only. No rights are
conferred by this presentation. The Public Service Shared Risk
Plan Document and Funding Policy, the New Brunswick Pension
Benefits Act, and the Income Tax Act supersede this presentation
where discrepancies may occur. For authoritative wording
regarding this pension plan, please refer to the Plan Document
for the Public Service Shared Risk Plan.
http://www.gnb.ca/pssrp
Agenda
•
Overview of PSSRP
•
Benefits Payable upon Termination/Death
•
Other PSSRP Provisions
•
Insured Benefits
•
Other Key Points
•
Questions
PSSRP Overview
http://www.gnb.ca/pssrp
PSSRP Governance
A Board of Trustees is responsible for the administration of the PSSRP
 6 individuals have been appointed as Trustees including:
• 3 union members
• 3 government members (includes 1 retiree)
 2 observers
The Board of Trustees administers the PSSRP in accordance with:
PSSRP Overview
http://www.gnb.ca/pssrp
Employee Contributions
Current Rates
• 7.5% of earnings up to YMPE
• 10.7% of earnings in excess of YMPE
 YMPE: Year’s Maximum Pensionable Earnings under the
Canada Pension Plan (CPP) – 2015 YMPE = $53,600.
 CPP deductions cease upon reaching the YMPE.
PSSRP Overview
http://www.gnb.ca/pssrp
Vesting
Entitlement to pension benefits
Vesting under the PSSRP occurs upon the completion of the earlier of:
• Five years of continuous employment; or
• Two years of pensionable service in the PSSRP (including pensionable
service in the Public Service Superannuation Act (PSSA)); or
• Two years of membership in the PSSRP, including membership in any of the
following predecessor pension plans:
 The Pension Plan for Part-Time and Seasonal Employees
of the Province of NB (PT&S); or
 The PSSA.
PSSRP Overview
http://www.gnb.ca/pssrp
Benefits Accumulated
In determining the benefits accumulated, pensionable
service needs to be separated as follows:
PSSRP Overview
http://www.gnb.ca/pssrp
Benefits Accumulated
PSSRP Overview
http://www.gnb.ca/pssrp
Benefits Accumulated
 Calculation prior to any early retirement reduction factor
and Cost of Living adjustment
PSSRP Overview
http://www.gnb.ca/pssrp
Bridge Benefit Prior to Age 65
• The Bridge Benefit (also known as Integration) is intended to supplement
your income until age 65, at which time it ceases and you are eligible for an
unreduced CPP pension.
• CPP contributions are required on earnings up to YMPE.
• PSSRP contribution rates:
 lower on earnings up to YMPE, to recognize required contributions
into two plans.
 higher on earnings above YMPE, as no CPP contributions.
PSSRP Overview
http://www.gnb.ca/pssrp
Bridge Benefit Prior to Age 65
• Benefit accrual rates are based on contribution rates.
• The bridge benefit under the PSSRP and your CPP benefits may not be the
same amount.
• The PSSRP bridge benefit is payable as early as age 55, regardless of age at
which CPP pension begins.
PSSRP Overview
http://www.gnb.ca/pssrp
Active Member Calculation
 COLA assumed to be 1.7% each year
 Same concept applies to benefits payable at age 65
 Calculation prior to any early retirement reduction factor
PSSRP Overview
http://www.gnb.ca/pssrp
Early Retirement Reduction Factors
PSSRP Overview
http://www.gnb.ca/pssrp
Cost of Living Adjustment
•
Each year, based on the funding level of the PSSRP, it will be determined
whether the plan is able to provide indexation – also known as Cost of
Living Adjustment (COLA):
 The financial report (Actuarial Valuation) will outline the funding
level of the PSSRP; and
 The PSSRP’s Funding Policy will outline how much COLA could be
provided (up to average change in Consumer Price Index (CPI)).
•
The PSSRP is designed to provide average cost of living adjustments in
excess of 75% of the CPI over a 20 year period.
•
When COLA is provided, it will apply to active employees,
retirees and deferred members.
PSSRP Overview
http://www.gnb.ca/pssrp
Statement of Benefits
PSSRP Overview
Pension Estimate Calculator
• Can be used with or without the information provided on your
Employee Statement of Pension Benefits.
• The Calculator Tool is located on our website at: http://www.gnb.ca/pssrp
Example of a plan member approaching retirement:
 Employee will be 59 years old on Nov. 30th/15
 will be terminating employment on Nov. 30th/15
 Pension start date of Dec. 1st/15
Information on statement:
PSSRP Overview
http://www.gnb.ca/pssrp
Pension Estimate Calculator
PSSRP Overview
http://www.gnb.ca/pssrp
Pension Estimate Calculator Results
(3% x 1 year)
 Gross amounts
(5% x 6 years)
PSSRP Overview
http://www.gnb.ca/pssrp
Forms of Pension
There are various forms of pension at retirement:
Joint &
Survivor at
50%*
Joint &
Survivor at
60%
Joint &
Survivor at
100%
Life Pension –
5 Year
Guarantee
Life Pension –
10 Year
Guarantee
Life Pension –
15 Year
Guarantee
 Normal Form of Pension
PSSRP Overview
http://www.gnb.ca/pssrp
Forms of Pension
Joint and Survivor at 50%
• Payments made during lifetime of retiree.
• If retiree dies before spouse, payments continue to spouse (spouse at date
of death) for remainder of spouse’s life.
• 50% of pension amount at age 65 (before application of any early
retirement reductions) payable to spouse, or eligible dependent if spouse
dies or no spouse.
• If member has a spouse, a Spousal Waiver form must be completed by
the member’s spouse at time of retirement.
PSSRP Overview
http://www.gnb.ca/pssrp
Forms of Pension
Joint and Survivor at 60% or 100%
• Payments made during lifetime of retiree.
• If retiree dies before spouse, payments continue to spouse (spouse at date
of retirement) for remainder of spouse’s life.
• 60% or 100% of pension amount at age 65 (after application of any early
retirement reductions) is payable to spouse.
• If no spouse or if spouse dies, 50% of pension amount at age 65 (before
application of any early retirement reductions) is payable to eligible
dependent.
PSSRP Overview
http://www.gnb.ca/pssrp
Forms of Pension
Life Pension Guarantee (5, 10 or 15 Years)
• Payments made during lifetime of retiree.
• If retiree dies before end of guarantee period, the Designated Beneficiary
receives the remaining pension payments (being the pension payable at age
65, after application of any early retirement reductions) through monthly
installments.
• If member has a spouse, a Spousal Waiver form must be completed by the
member’s spouse at time of retirement.
PSSRP Overview
http://www.gnb.ca/pssrp
Designated Beneficiary
• A member may designate a beneficiary or beneficiaries to receive any
benefit which may be payable under the terms of the PSSRP upon the death
of the member.
• Upon the death of the member, if there is no spouse, eligible dependent or
designated beneficiary, any death benefits will be payable to the member’s
estate.
• If an active or deferred member designates a person other than his/her
spouse as a beneficiary, the entitlement of the spouse shall supersede the
entitlement of the beneficiary to a death benefit.
PSSRP Overview
http://www.gnb.ca/pssrp
Preliminary Retirement Statement
Date of termination: November 30, 2015
Date on which pension entitlement will commence: December 1, 2015
SECTION #1 – OPTIONS AVAILABLE
Your retirement benefit options are: (choose only one)
Monthly amount payable
_________________________________
To Pensioner
On death of
pensioner
A. Joint Life and Survivor Option payable at 50% to the
surviving spouse at member's death (or to eligible
children if no spouse)
from December 1, 2015 to November 1, 2021
from December 1, 2021
$4,723.19
$3,643.14
$1,906.62
$1,906.62
B. Joint Life and Survivor Option payable at 60% to the
surviving spouse specified at time of retirement (or
eligible children upon death of spouse based on Joint
Life and Survivor Option payable at 50%)
from December 1, 2015 to November 1, 2021
from December 1, 2021
$4,700.83
$3,620.76
$2,172.46
$2,172.46
C. Joint Life and Survivor Option payable at 100% to the
surviving spouse specified at time of retirement (or
eligible children upon death of spouse based on Joint
Life and Survivor Option payable at 50%)
from December 1, 2015 to November 1, 2021
from December 1, 2021
$4,546.66
$3,466.59
$3,466.59
$3,466.59
D. Life Pension with 10 Year Guarantee
from December 1, 2015 to November 1, 2021
from December 1, 2021 to November 1, 2025
from December 1, 2025
$4,723.19
$3,643.14
$3,643.14
$3,643.14
$3,643.14
$0.00
E. Life Pension with 15 Year Guarantee
from December 1, 2015 to November 1, 2021
from December 1, 2021 to November 1, 2030
from December 1, 2030
$4,672.48
$3,592.42
$3,592.42
$3,592.42
$3,592.42
$0.00
Under the Income Tax Act,
an optional form of pension
cannot be larger than the
Normal Form of Pension
(Option A).
PSSRP Overview
http://www.gnb.ca/pssrp
Schedule of Pension Payments
 Paid on the 24th of each month
 Pension Benefit begins the month after you become eligible
Date of termination
May 10th
First payment
June 24th
 Upon the death of a pensioner
Date of death
May 10th
Last payment
May 24th
Benefits Payable upon Termination/Death
http://www.gnb.ca/pssrp
Termination Benefits
If a member is not vested:
• Member receives a refund of their contributions with interest.
• The amount is payable as cash or can be directly transferred into an RRSP.
Benefits Payable upon Termination/Death
http://www.gnb.ca/pssrp
Termination Benefits
If a member is vested (prior to age 55)
• Member can defer their pension benefit;
 If the member defers their pension, the pension can begin as early as
age 55 (reduced) and no later than age 65 (unreduced).
OR
• Member can elect to transfer the Termination Value to a retirement
savings arrangement on a locked-in basis (LIRA, LIF, etc.)
 The Termination Value will not be less than the member’s
contributions plus interest
Benefits Payable upon Termination/Death
http://www.gnb.ca/pssrp
Termination Benefits
If a member is vested (on or after age 55)
• The member has the following options:
 Choose to begin receiving their pension immediately; or
 Defer their pension benefit until a date between their 55th and 65th
birthday and receive a reduced pension benefit; or
 Defer their pension benefit until age 65 and receive an unreduced
pension.
Benefits Payable upon Termination/Death
http://www.gnb.ca/pssrp
Death Benefits
Prior to retirement (Non-Vested Member)
• Refund of member’s contributions with interest to member’s surviving
spouse or designated beneficiary/estate if there is no spouse.
Benefits Payable upon Termination/Death
http://www.gnb.ca/pssrp
Death Benefits
Prior to retirement (Vested Member)
• If member has a spouse, the spouse has the option to:
 receive a monthly pension benefit of 50% of the amount payable at
age 65 (before application of early retirement reductions); or
 receive a lump sum payment equal to the Termination Value.
• If member does not have a spouse, the designated beneficiary/estate will
receive a lump sum payment equal to the Termination Value.
• If an eligible dependent is the designated beneficiary, a monthly pension as
described above is available instead of the Termination Value.

The entitlement of the spouse shall supersede the
entitlement of any beneficiary designation.
Benefits Payable upon Termination/Death
http://www.gnb.ca/pssrp
Death Benefits
At retirement (If a member dies after pension commenced)
• The death benefit will be paid in accordance with the form of pension
benefit the member elected at retirement.
Other PSSRP Provisions
http://www.gnb.ca/pssrp
Purchase of Pensionable Service
A member may be able to purchase the following periods of service
(certain restrictions apply):
• Previously refunded service
• Authorized leave without pay (e.g., maternity)
• Prior non-contributory full-time and part-time service (e.g., casual
employment)
• Long Term Disability Waiting Period
• MLA Service
Other PSSRP Provisions
http://www.gnb.ca/pssrp
Purchase of Pensionable Service
• The cost to purchase service varies depending on the type of service being
purchased.
• In most cases, the cost to purchase service will be the greater of:
 one times the current contribution rate; or
 the adjusted termination value.
Other PSSRP Provisions
http://www.gnb.ca/pssrp
Reciprocal Transfer Agreements
• A reciprocal transfer agreement (RTA) permits the portability of pension
benefits between pension plans.
• Currently there are RTAs between the PSSRP and:
 the Pension Plan for Part-Time and Employees of the Province of New
Brunswick (PT&S);
 the national public service pension plans (this includes all 10
provinces); and
 the Government of Canada Public Service pension plan.
• Other reciprocal transfer agreements are being negotiated.
Members will be notified when new agreements come into effect.
Other PSSRP Provisions
http://www.gnb.ca/pssrp
Marriage Breakdown Provisions
• The pension plan permits the division of pension assets upon marriage
breakdown.
• This applies to agreements, judgments or court orders dated after
December 31, 1996.
• Our office will determine, based on an actuarial calculation, the eligible
amount available for division based on the agreement, judgment or court
order.
• Funds are transferred on a locked-in basis.
• There are no provisions in the pension plan for purchasing the lost
benefits as a result of a marriage breakdown.
Other PSSRP Provisions
http://www.gnb.ca/pssrp
Work Time Flexibility Program
Only full-time members of the PSSRP who are within
five years of retirement may apply.
• Reduce work schedule (as low as 50% of full-time).
• Pay contributions on full-time salary.
• Receive full-time pension credit.
• Subject to Employer Approval and CRA limitations.
• Elected retirement date is irrevocable.
Insured Benefits
http://www.gnb.ca/pssrp
Dental Insurance
Dental Benefits
 Transfer from Active Plan to Retiree Plan.
 You are only eligible to continue in the plan if you are participating in as an
active employee in the UNB Dental Plan.

Monthly Premium
Single Coverage
Family Coverage
$20.15
$40.29
Other Key Points
• You should inform your employer at least six months in advance of your
retirement date to ensure you receive your pension in the month following
your termination date.
• The PSSRP Employee Booklet is available on our website which provides
detailed information on the provisions of the plan.
• Pension estimates can be calculated using the Pension Calculator Tool
available on our website: http://www.gnb.ca/pssrp.
• Formal pension estimates can be requested if you are within 12 months of
your retirement date.
• If you have questions regarding the pension options available at
retirement, please contact one of our Benefits Counselors.
Contact Information
http://www.gnb.ca/pssrp
Additional Information
http://www.gnb.ca/pssrp
Questions?