Public Service Superannuation Plan NOT COMPLETE WITHOUT COMMENTARY

1. Public Service Superannuation PlanNOT COMPLETE WITHOUT COMMENTARY

2. Public Service Superannuation Plan The Public Service Superannuation Plan (PSSP) is a defined benefit registered pension plan that provides benefits to eligible public servants and their families upon attainment of 2 years of eligible service. Participation is mandatory, to a maximum of 35 years

3. Common Terms

4. Unreduced Pension Benefit Provided you meet one of the following sets of criteria: • Age 60 + 2 yrs eligible service • Age (minimum age 50) + yrs of eligible service = 80 • Age (minimum age 55) + yrs of eligible service = 85 (*applies if employed on or after April 6, 2010)

5. Reduced Pension Benefit • Age at least 55 + at least 2 yrs eligible service • Pension is reduced by 0.5% for each month prior to unreduced date (6% per annum) • For example – 3 years early is an 18% reduction

6. Pension Contribution Rates • The plan is integrated with CPP • Contributions increase over the YMPE ($53,600) • A Bridge Benefit is paid until age 65

7. Unreduced Pension - Example 1 Assume HAS $40,000 and Average YMPE $47,360

8. Unreduced Pension - Example 2 Assume HAS $55,000 and Average YMPE $47,360 - $7,640 above YMPE

9. Pension Splits • Occur as a result of marriage breakdown • Member is considered legally married until divorced. Require a copy of a Corollary Relief or Court Order • Former spouse is entitled to up to 50% of member’s pension earned from the date of marriage/cohabitation to the date of separation • Former spouse’s pension goes into pay when the members retires or when the member reaches age 65

10. Pension Split Payments • Pension to former spouse is paid monthly • Former spouse may also be entitled to receive payment of the commuted value of their share of the pension when the member becomes entitled, even if the member does not elect to do so

11. Purchases • Full-time casual service, of a minimum of 6 months continuous service • Outside service, from a recognized public authority. Please contact us for further information • Prior refunded service • Acting pay, for a period of at least 6 months in the acting position. Can purchase acting pay at the earliest of the end of the acting position or retirement

12. Purchases • Must purchase the full service; cannot purchase partial acting service

13. Additional Pension Benefits Canada Pension Plan Maximum monthly benefit at age 65 $1,065.00 Average at Age 65 $594.19 Old Age Security Maximum monthly benefit at age 65 $569.95 Restrictions apply, depending on total net income Source: www.servicecanada.gc.ca (July 2015)

14. Termination Benefits If you terminate employment after attaining 2 years of eligible serviceand arenot eligible for immediate unreduced pension. You will be entitled to one of the following: • A deferred pension payable at the earlier of age 60 or when (minimum ) age 50 + years of eligible service = 80 (minimum age 55 + service = 85 for members first employed on or after April 6, 2010) • A reduced pension payable as early as age 55 • Transfer Commuted Value (the present value of your pension) to a Locked-In RRSP (ITA Rules)

15. Definitions

16. Definitions Child The natural or adopted child of a member or former member; or a person for whom a deceased member/former member stood in loco parentis at the time of the death of the member/former member. Includes legal guardians Dependent The father, mother, grandfather, grandmother, brother, sister, child or grandchild of an employee who, at the date of the death of the employee, is by reason of mental or physical disability, dependent on the employee for support.

17. Death Benefits Having accrued 2 years’ eligible service: Spouse (pre retirement death) For 5 years, 100% (Guarantee) of member’s pension less children’s benefits. After the Guarantee, 66.67% or 60% for life with post-1991 bridging removed Spouse (post retirement death) Remainder of 5 year guarantee then, 66.67% or 60% for life with post-1991 bridging removed at age 65

18. Death Benefits Child(ren): Payable to age 18 or age 25 with annual proof of Full-Time attendance at a recognized educational institution: • 10% of member’s pension each (maximum 3 children) • proportionate share of 33.33% of member’s pension • when greater than 3 children • if no spouse, eligible children split 66.67% or 60% in place of the children’s benefit

19. Death Benefits Dependent (no spouse or children) 66.67% or 60% of member’s pension for life Designated Beneficiary or Estate If no eligible survivors, a refund of member contributions with interest will be paid to the member’s designated beneficiary or estate

20. Pension Indexing • Indexing is set in five-year blocks and is created in January of each year • Indexing until the end of 2015 is 1.25%. Indexing for January 1, 2016 to December 31, 2020 has been set at 0.85% each year • Future indexing is dependent on the funded ratio of the Pension Plan as at December 31 at the end of each 5-year cycle. If the plan is less than 100% funded, no indexing will be credited • Indexing is pro-rated for the first calendar year of a newly established pension

21. Retirement Package • Birth certificate/ Passport (photocopies), self and spouse if applicable • Spouse’s full name • Social insurance numbers, self and spouse if applicable • Copy of Proof of Marriage Document if applicable • Home address with postal code • TD1 Income Tax Form • Direct Deposit Enrollment Form or Void Cheque Please contact your HR department at least 2 months in advance !

22. Contact Us Nova Scotia Pension Services Corporation 1949 Upper Water Street 4th Floor,Purdy’s Landing Halifax NS B3J 3N3 Tel. Toll free in NS: 1 800 774 5070 Tel. Local: 424 5070 Fax: 902 424 0662 Email: pensionsinfo@nspension.ca www.novascotiapension.ca

23. Additional Benefits • Public Service Award • Group Insurance Plan • Retired Employees Health Plan These are not administered by NS Pension Services Corporation

24. Public Service Award (PSA) Payments Calculation- • Equal to one week of gross salary for each year of service to a maximum of 26 years (a partial year will be prorated) • The salary used in the calculation will be the greater of the salary the employee was receiving at the time of retirement or the 5 year average salary used in the employee’s pension calculation • Payable to those who will be receiving an immediate pension benefit and who do not receive a severance benefit

25. Public Service Award (PSA) Payments Payment Options- • Cash to the Employee (less withholding taxes) • Transfer to an RRSP tax free • Transfer to purchase prior service under the Public Service Superannuation Plan

26. Tax Free Transfer of PSA • As per 60(j) of the income tax act, transfer eligibility is equal to $2,000 for each year of service prior to 1996 (transfer does not decrease personal RRSP room) • Part of a year prior to 1996 is deemed to be a full year • PSA benefits greater than what is permitted under 60(j) are eligible to be transferred to the employee’s RRSP if there is room available Reminder – Any outstanding PSA Advances are deducted from PSA amounts and are TAXABLE. You may wish to consider arranging repayment from sources other than your PSA to avoid negative tax consequences.

27. PSA Transfer Examples Employee PSA entitlement: $25,000.00 Service Prior to Jan 1,1996 = 10 years $20,000.00 Transfer eligibility under 60(j) $20,000.00 Non eligible $ 5,000.00

28. Group Life Insurance & Health Plan

29. Group Life Insurance If retiring prior to age 65, coverage will continue to age 65 If retiring at age 65 or after, coverage will continue for 3 months past the date of retirement Pensioner is responsible for 100% of the premium cost for Basic and Optional insurance coverage Basic premium rate is $0.238 cents / $1,000 of coverage Optional premium rate is based on age

30. Group Life Insurance Coverage is not available if you defer your pension Pensioner can reduce or cancel coverage at any time; but once coverage is reduced or cancelled, it cannot be re-instated in the plan at a later date Existing designated beneficiary on file at the PSC is still valid after retirement. However, the pensioner may change the designated beneficiary at any time by completing a Beneficiary Nomination Form

31. Group Life Insurance Conversion Privilege: • A pensioner who has maintained coverage during retirement, will have the option to convert this coverage to an individual policy at age 65. The PSC will contact the pensioner prior to their termination date to explain the details of their of their group life insurance conversion • The insurer does not require medical evidence if the coverage is converted within 31 days of the termination date • The premium for the individual policy will not be the same as under the group policy

32. Health Plan Coverage under the Employees Health/Dental/Travel plan will continue for 28 days following the retirement date Blue Cross identification number and claims history are automatically transferred to the Pensioners Health plan The Pensioners Health plan has different plan maximums for the covered services and is not similar to the Employees Health plan Dispensing fee co-pay changes to a co-pay of $5.00 per prescription

33. Health Plan Coverage for prescription drugs will continue to age 65. Extended health benefits will continue after age 65. If your spouse is under 65, their drugs are covered until their 65th birthday. Pensioners who require drug coverage after age 65 can purchase drug coverage through the Seniors or Families Pharmacare Programs. The PSC must be notified of any of the following changes: Addition/deletion of dependent/s Dependents in university who are between ages 21-25 Overage dependent form required each school year Change Forms are available on PSC website Changes to your name or address are to be forwarded to the NSPSC; Blue Cross will be updated automatically

34. Monthly Health Plan Costs For 2014 – 15 • Premium cost share remains the same: Employer 65%; Pensioner 35% Health booklet & costs are on the PSC website www.gov.ns.ca/psc

35. Contacts for Retired Employees Group Life & Health Insurance Plan For pensioners covered under the Public Service Superannuation Plan contact: Nova Scotia Public Service Commission Benefits P.O. Box 943 Halifax NS B3J 2V9 Phone: 902-424-3240 E-mail Address: PSCBenefitInquiries@novascotia.ca Fax: 902-424-0756