Deputy Ministers' Pension Coverage
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Public Service Superannuation Act
Members of the Public Service Superannuation Plan, including Deputy Ministers, may qualify for pension benefits under the Public Service Superannuation Act when one of the following criteria is met.
Eligibility
- at least 50 years of age, with age plus years of service equaling at least 80;
- at least 60 years of age with 2 or more years of service;
- at least 55 years of age with 2 or more years of service (reduced pension).
Calculation of Benefit1
2% X (Highest 5 Years Average Salary) X (Years of Pensionable Service)
Note: at age 65 the pension benefit is recalculated as a result of integration with the Canada Pension Plan (CPP).
1 Lump sum payments such as bonuses, performance payments or retroactive compensation can artificially inflate pension estimates if they have not been correctly reported to us. It is possible that your actual pension benefit may be lower and you should take this into consideration.
Deputy Minister Supplementary Pension Rules
A Deputy Minister qualifies for a Deputy Minister’s pension when all of the following criteria are met. If the criteria are not met, the pension benefit and eligibility would be determined under the normal provisions of the Public Service Superannuation Act (above).
Eligibility
- at least 50 years of age;
- at least 20 years of service as a member of the Public Service Superannuation Plan (not including outside service transferred in, unless it was with the Federal Government); and at least 5 of these years must be as a Deputy Minister.
Calculation of Benefit1
2% X (Highest 3 years Average Salary) X (Years of Pensionable Service)
Note: at age 65 the pension benefit is recalculated as a result of integration with the Canada Pension Plan (CPP).
1 Lump sum payments such as bonuses, performance payments or retroactive compensation can artificially inflate pension estimates if they have not been correctly reported to us. It is possible that your actual pension benefit may be lower and you should take this into consideration.
Canada Pension Plan Benefits
Canada Pension Plan (CPP) benefits may be drawn at age 65 or taken as early as age 60. If you decide to draw CPP benefits early you would receive a reduced amount calculated by the Canada Pension Plan. For information on CPP benefits please contact the Canada Pension Plan at 1-800-277-9914.
The pension payable under the Public Service Superannuation Act is not affected by the date the Deputy Minister elects to start drawing CPP benefits.
Survivor Benefits
Provisions for survivor benefits apply to members of the Public Service Superannuation Plan and those who qualify for the Deputy Minister Supplementary Pension Rules.
Surviving Spouse
If a Deputy Minister dies in service, a surviving spouse would be entitled to receive 100% of the pension benefit that the Deputy Minister would have been entitled to receive if he or she were eligible for retirement. This benefit is guaranteed to be paid for a period of 5 years.
After the end of the 5-year guarantee period, the spouse would receive 66 2/3% of the Deputy Minister’s pension benefit, payable for life. If the Deputy Minister dies within 5 years after retiring, the surviving spouse would receive 100% of the Deputy Minister’s pension benefit for the rest of the 5-year guarantee period.
If a Deputy Minister dies after the 5-year guarantee period, a surviving spouse would be entitled to receive 66 2/3% of the pension benefit that the Deputy Minister was receiving, payable for life.
Surviving Children
Surviving children up to 18 years of age (or 25, if in full-time attendance at an educational institution) are eligible to receive 10% of a Deputy Minister’s pension benefit. If there are more than 3 eligible children, 33 1/3% of the Deputy Minister’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.
Surviving Dependants
A dependant is defined as a person who is related to you who is dependent on you by reason of physical or mental infirmity. If there is no surviving spouse or child but there is an eligible dependant(s), the dependant(s) would be entitled to receive the survivor benefit that would have been payable to the spouse, divided on an equal basis.
No Surviving Spouse, Children or Dependants
If a Deputy Minister dies in service and is not survived by a spouse, children, or dependant, a refund of his or her pension contributions plus interest will be paid to the designated beneficiary or estate.
If a Deputy Minister retires and then dies before receiving pension payments at least equal to his or her pension contributions plus interest, a refund of the difference will be paid to the designated beneficiary or estate.
Contributions
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 earnings up to and including the Year’s Maximum Pensionable Earnings (YMPE), and the higher rate, 10.9%, is payable on earnings in excess of the YMPE.
The YMPE is a figure established by the Canada Pension Plan on January 1 of each year. Pension contributions cease to be deducted at the earlier of: accruing 35 years of pensionable service, or reaching seventy-one years of age. The following is an example of the calculation.
The YMPE for 2010 is $47,200. If you earn $120,000 in 2010, your contributions to the Public Service Superannuation Plan would be $11,900.00, calculated as follows:
8.4% X $47,200 = $3,964.80
10.9% X ($120,000 – $47,200) = $7,935.20
Total Contributions for 2010: $11,900.00
Note: Prior to July 5, 2009 the contribution rates were 7.4% and 9.6%, below and above the YMPE, respectively.
Pension Indexing
Indexing is credited to pensions on January 1 of each year. It is calculated as the percentage increase in the average CPI for the 12-month period ending October 31 of the previous calendar year over the 12-month period ending October 31 for the calendar year prior to that.
The maximum increase in one year is 6%. If the calculated increase is less than 1%, the indexing for that year is carried forward and included in the following year’s indexing.
Disability Benefits
For information regarding long term disability benefits please contact:
NS Public Service LTD Plan Trust Fund
Halifax Professional Centre
5991 Spring Garden Road, Suite 901,
Halifax NS B3H 1Y6
Tel: 902-461-0421, Toll free: 1-877-461-0421
Fax: 902-466-3406
Email enquiries: comments@nsps-ltd.com
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