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A defined benefit plan delivers a defined retirement income based on a specific formula related to your annual earnings and your pensionable service. And that income lasts throughout retirement, which makes budgeting for retirement much easier.

For more information on Â鶹´«Ã½â€™s defined benefit plan, please see the pension summary section.

The pension provided under this Plan is based on a pre-determined formula that uses pensionable service, the average of the best three years of remuneration received by the member, and a multiplier.  Your unreduced pension payable at your Normal Retirement Date if calculated as follows:

For Service up to December 31, 2023:  

• The average of your best three years of earnings x years of service in the Plan to Dec 31, 2023 x 2%

PLUS

For service on and after January 1, 2024:

• Years of service from Jan 1, 2024,  multiplied by the sum of (a) 1.8% of the best 3 years’ average earnings up to the average YAMPE, and  (b) 2% of the best 3 years' average earnings above the average YAMPE

The total pension you are entitled to receive at retirement is a combination of pension earned before and after January 1, 2024.  

The pension plan provides full, unreduced pensions as early as the first of the month after you reach age 65.  Early retirement pensions are available as early as the first day of the month after age 55; however, an early retirement reduction will be applied.

Note: Years of service are limited to 35, and the total pension payable is subject to limits set by the Income Tax Act.

The pension plan has many moving parts to ensure it continues to operate successfully now and into the future.

Â鶹´«Ã½ has a structure in place for the governance and administration of the Plan that consists of the Board of Governors, the Pension Advisory Committee (PAC) and Fund Trustees.

• The Board of Governors acts as the Administrator of the Plan, monitors the investment of the Plan assets, amends Plan rules subsequent to PAC recommendations, collects and deposits member contributions and contributions from the employer, as well as maintains all necessary administrative records.
• Pension Advisory Committee (PAC) considers matters relating to pension benefits and the administration of the Plan and makes recommendations relating to the administration of the Plan and the Plan design. The committee also seeks to promote awareness and understanding of the Plan among its members.
• PTF/RTF Trustees implement investment policies to align with the Plan’s obligations, oversee fund investment management and monitor the investment managers. The Trustees’ primary focus is on the actuarial return targets required to meet the benefit objectives. The investments have met and exceeded the respective return targets over the last 24 years since the plan last enjoyed a strong surplus position. The Trustees also review and consider discretionary or catch up indexing.
• The Plan also utilizes the services of an actuary to determine the financial position of the Plan (how much money there is in the Plan (the Plan’s assets) and how much money the Plan needs to pay out the benefits promised (the Plan’s liabilities)). The actuary also establishes the minimum and maximum contributions to the Plan until the next valuation and ensures the Plan meets the statutory filing requirements under the Nova Scotia Pension Benefit Act and the Income Tax Act.