The objective of this article is to explain and publicize certain fundamental and unique changes made to Nova Scotia’s Public Service Superannuation Plan (PSSP). Trustees, sponsors, and administrators of other traditional public-sector Canadian pension plans may find these changes interesting and instructive as they consider potential evolutions to their own plans.

After many years and much effort, the PSSP is now open for any qualifying employer in the Province to apply to join, regardless of whether public-sector, private-sector, or non-profit. Further, the PSSP now offers new contribution participation levels at 80% and 60%, in addition to its regular level of 100%. The regular PSSP contribution rates are 8.4% under the YMPE, currently $71,300, and 10.9% above. Recognizing that these rates can be challenging for some private-sector and other Nova Scotia employers to fund, the new options allow greater flexibility for participation.

The PSSP is the first traditional defined benefit (DB) plan in Canada to adjust its parameters to incorporate this level of accessibility. In existence for 102 years and counting, the PSSP is one of the most secure retirement options available in the Province. The Plan is administered in Nova Scotia by Nova Scotians, is overseen by a trustee board comprised entirely of Nova Scotians, and holds significant investments in the Province.

The PSSP's modernization journey began in 2009, following a change in government. At that time, the PSSP had been significantly impacted by the Great Financial Crisis of 2007–2008 and was underfunded. The Minister of Finance served as the sole trustee of the PSSP, and the Plan's deficit was a severe challenge for government accounting. The Nova Scotia Government Employees Union (NSGEU) advocated for shared control of the PSSP, supporting a move toward a joint trusteeship model.

By 2010, fundamental changes to the PSSP had been initiated:

• Almost $500 million in cash was injected into the PSSP. Along with making pensioner indexing expressly contingent on the health of the Plan and implementing a few prospective benefit reductions for active members, these measures restored the funded status of the PSSP to 100% on a going concern basis.
• A jointly trusteed board, with equal employer and employee representation, was established to oversee the PSSP. The board took over on April 1, 2013.
• A detailed funding policy was embedded in the Public Service Superannuation Act. With this framework in place, and alongside other financial changes, the Province removed its guarantee of PSSP obligations. The PSSP became “off-book” for the Province.

For the past twelve years, the PSSP has been entirely self-financing, self-regulating, and self-governing. There is no sponsors' board, and no reporting lines to the Province. While the Minister of Finance and Treasury Board appoints some members of the trustee board, the board operates independently.

Following its inception in 2013, the PSSP’s trustee board focused on plotting a sustainable course for the future. Although the funded status was decent, the Plan's demographic profile presented challenges, with annual benefit payments exceeding contributions by $150-$200 million.

The trustee board concentrated on growing membership to ensure long-term sustainability. The first major opportunity came in 2015 with Acadia University. Facing the high costs and administrative burden of managing its own DB plan, Acadia opted to transfer its pension assets and liabilities into the PSSP through newly enacted legislation, resulting in several hundred new members.

Building on this success, similar legislation enabled the transfer of pension plans from other sectors:

• The University Pension Plan Transfer Act (UPPTA) facilitated the integration of additional universities.
• The Municipal and Other Authorities Pension Plan Transfer Act (MOAPPTA), enacted in 2016, extended the opportunity to municipalities and other authorities.

Since then, more than 20 municipalities and other authorities have joined the PSSP.

In recent years, the PSSP trustee board continued to explore innovative strategies to expand membership further. Engagement with the provincial government and support from key stakeholders, including the NSGEU, led to the enactment of the Private Sector Pension Plan Transfer Act (PSPPTA) in late 2023, proclaimed into force in early 2024.

In the autumn of 2024, the PSSP trustee introduced 'PSSP VANTAGE,' offering participation levels at 80% and 60% of the regular contribution rate, allowing employers and employees to join under terms that suit their financial capacities while preserving defined benefit security.

Key lessons from the PSSP experience include:

• The importance of structural flexibility: The PSSP’s governance model allows broad powers for its trustee board, ensuring financial and operational autonomy.
• Stakeholder collaboration: The expansion efforts would not have been possible without the alignment of key stakeholders, including the Province and the NSGEU.
• Legislative support: Successive governments enabled expansion through targeted legislation.

Between 2015 and 2024, 26 new employers, 4,000 new employees, and approximately $500 million in assets were added to the Plan during "Growth Phase One." With PSPPTA and the VANTAGE options now in place, "Growth Phase Two" seeks to build on that momentum.

Through these strategic expansions, the PSSP is now open to any qualifying Nova Scotia employer. NS Pension remains committed to advancing retirement security across the Province, and the PSSP's evolution marks a significant step toward achieving that vision.

Doug Moodie, CEO, Nova Scotia Pension Services Corp. (NS Pension)

Doug has been CEO of NS Pension for 8 1/2 years. Before that he was a lawyer with the Nova Scotia Department of Justice, largely working with the Department of Finance and Treasury Board on pension-related matters. Prior to that, Doug practised law for 15 years at the Toronto office of a national firm. He holds LL.B and LL.M degrees from Dalhousie University.