Public Service Superannuation Plan Trustee Inc.(PSSPTI) has completed its comprehensive funded-health review (2020 Funded-Health Review) of the PSSP. The 2020 Funded-Health Review was conducted in accordance with provisions in the Public Service Superannuation Act (PSSA), which mandates PSSPTI to review the Plan’s funded health every 5 years.
The purpose of a funded-health review is to determine the Plan’s ability to afford indexing (also known as cost-of-living adjustments, or COLA) for the next 5 years and assess if any change is required to Plan benefits and contribution rates.
The Results:
The 2020 Funded-Health Review was based on the Plan’s funded status as at December 31, 2019, which was 98.5%. The results are:
- As the Plan’s funded status was below 100%, indexing is mandated to be zero for the next 5-year cycle (starting January 1, 2021 and ending December 31, 2025). Under the PSSA’s funding policy, when the funded status is below 100% on a stipulated valuation date there can be no indexing paid during the following 5-year cycle.
- As the Plan’s funded status was above 96% but below 100%, it was required that PSSPTI consider whether to adjust contribution rates. Upon its analysis and with advice provided by the Plan’s actuary, PSSPTI determined that no change in contribution rates is warranted at this time.
For Q&A’s regarding the Funded Health Review, please click here.
Please email any questions or concerns you may have regarding the funded-health review results to: PSSPTI@nspension.ca.