- Can a plan member stop contributing to the PSPP?
- What is the Definition of an employee as defined by the Public Service Pension Plan?
- What rate of interest is earned on contributions to the PSPP?
- What if a plan member changes to part-time employment?
- Are there information seminars for plan members?
- Are plan members provided with benefit statements?
1. Can a plan member stop contributing to the PSPP?
No.
As long as the definition of employee as defined by the Public Service Pensions Plan is met, contributions must continue.
2. What is the Definition of an employee as defined by the Public Service Pension Plan?
An employee is a person who is employed on a full-time basis, with a member employer for a period involving a minimum of 4 calendar months. Persons who are seasonal and working full-time hours are employees regardless of the length of the employment period. For school board employees the minimum requirement for eligibility is 25 hours per week. The definition of employee does not include students, or a casual, part-time or contractual person whose terms of employment specifically exclude him or her from participation in the pension plan.
3. What rate of interest is earned on contributions to the PSPP?
From 1991 to 1999, interest on employee contributions has been credited at the rate of the major Canadian banks for one year guaranteed investments. Prior to 1991, interest on required contributions was calculated at 5% per annum. From 2000 on, interest will be paid as directed by the Pension Benefits Act and Regulations. This rate is generally based on 5 year fixed term, term deposit rates.
4. What if a plan member changes to part-time employment?
A member, whose employment status changes to part-time, is no longer eligible to participate in the PSPP. It should be noted that, under Section 40 (5) of the Pension Benefits Act, a refund of contributions is not permitted. A part-time employee is required to participate in the Government Money Purchase Pension Plan (GMPP), provided that the employer is participating in the GMPP. Furthermore, there is a reciprocal arrangement whereby credits may be transferred between the GMPP and the PSPP.
5. Are there information seminars for plan members?
Yes.
The Pensions Division will participate in information seminars as requested by the employer.
6. Are plan members provided with benefit statements?
Benefit Statements are prepared on an annual basis and forwarded to employers for distribution to plan members.