Frequently Asked Questions for New Members
1. How much do I contribute to the pension plan?
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 salary up to and including the Year's Maximum Pensionable Earnings (YMPE), and the higher rate, 10.9%, is payable on salary in excess of the YMPE. The YMPE is a figure established by the Canada Pension Plan (CPP) on January 1 of each year.
Example # 1: (salary greater than YMPE): The YMPE for 2010 is $47,200. If you earn $50,000 in 2010, your contributions to the Public Service Superannuation Plan would be $4,270.00, and calculated as follows:
8.4% X $47,200 = $3,964.80
10.9% X ($50,000 - $47,200) = $305.20
Total Annual Contributions = $4,270.00
Example # 2: (salary less than YMPE): If you earn $35,000 in 2010, your salary would be less than the YMPE of $47,200. Therefore, your annual contributions would be $2,940.00, calculated as follows:
8.4% X $35,000 = $2,940.00
Note: Prior to July 5, 2009 the contribution rates were 7.4% and 9.6%, below and above the YMPE, respectively.
2. Who administers the pension plan?
The Nova Scotia Pension Agency administers the pension plan. You can reach a Client Services Consultant between the hours of 8am and 4:30pm Monday through Friday. After hours you may leave a voicemail message or email us at PensionsInfo@gov.ns.ca .
3. How is my pension calculated?
The following is an example of how a pension is calculated and what happens at age 65. For this example, John is retiring at age 58 with 32 years of pensionable service. His highest average salary (HAS) is $55,000. HAS is calculated by averaging the 5 highest yearly salaries of your career.
2.0% X |
Highest AverageSalary (HAS) |
X |
Pensionable Service |
|
$55,000 |
32.000 years |
John's annual pension at age 58: |
$35,200 |
|
|
Average YMPE |
|
Pensionable Service |
|
$40,000 |
32.000 years |
= |
- $8,960 |
John's annual pension at age 65: |
$26,240 | |
Please see question # 6 for information on Canada Pension Plan integration.
4. What happens to my penson benefit at age 65?
Depending upon whether you decide to draw your Canada Pension Plan (CPP) benefit at age 60 or 65, you may experience a decrease in the overall monthly income you receive. There are many details around this topic but the following is a brief summary of the two scenarios which can occur:
Scenario # 1
If you elect to start receiving CPP benefits prior to age 65, this is what you should receive each month:
The lifetime portion of your public service pension
Plus
The bridge benefit of your public service pension (until age 65)
Plus
A reduced CPP benefit from the Canada Pension Plan
Scenario # 2
If you elect to start receiving the CPP benefit at age 65, this is what you should receive each month upon reaching age 65:
The lifetime portion of your public service pension
Plus
The full CPP benefit from the Canada Pension Plan
Again this is only a summary. If you would like more information on what will happen to your total overall income (Public Service Plan benfit plus Canada Pension Plan benefit) at age 65, please contact us.
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