Skip to content

Nova Scotia offers new pension option to private sector employers

By Level Chan

When proclaimed in force, the Nova Scotia Private Sector Pension Plan Transfer Act (the “Transfer Act”) enacted by Bill 339, Financial Measures (Fall 2023) Act will allow the transfer of private sector pension plans to the Nova Scotia Public Service Superannuation Plan (“the Plan/PSSP”).

Private sector employers who can join the Plan

The Transfer Act creates a process for any employer not currently in the Plan to join. Currently, that option is only available to:

  • Nova Scotia universities;
  • a municipality, service commission, village or village commission; and
  • a public-sector employer such as government agencies, boards, commissions or tribunals, as well as certain providers of essential health and community services, and employers of medical doctors or judges.

Process for joining the Plan

If the employer has a pension plan, it can be transferred into the PSSP. The Transfer Act sets out the framework for transferring assets and liabilities from private sector plans to the PSSP, including:

  • The PSSP trustee and the transferring employer must enter into a transfer agreement setting terms for the transfer.
  • A transfer must be approved by the Superintendent of Pensions, who may refuse if a transfer agreement does not adequately protect the interests of members and beneficiaries.
  • Members eligible for benefits under the transferring plan must be given notice of the proposed transfer and the opportunity to vote on it. A transfer will not go ahead if more than one-third object from either (i) the active members, or (ii) the retired members, former members and other persons entitled to benefits.
  • A group agreement, such as with a union or other employee association, may be used for the transfer.

After transfer, the pension benefits of the transferred pension plan members will be governed by the PSSP.

If an employer ceases participation within ten years of transferring to the PSSP, it must pay a pro­rated share of any funding deficit attributable to its employees in the PSSP.

Employers may also join the PSSP on a go-forward basis without transferring an existing pension plan.

What this means for employers

The Transfer Act provides a new option for employers to offer, or continue to offer, a defined benefit pension plan with a prescribed funding policy. After joining the Plan, contributions and benefits will be in accordance with its terms. Employer administration and financial obligations would be limited to those required under the Plan, which is managed by a non-profit corporation with pension expertise.


This client update is provided for general information only and does not constitute legal advice. If you have any questions about the above, please contact a member of our Pensions and Benefits Group.

Click here to subscribe to Stewart McKelvey Thought Leadership

SHARE

Archive

Search Archive


 
 

Changes affecting federally regulated employers

June 10, 2024

By Killian McParland and Sophie Poulos There have been many changes in recent months affecting employers governed by federal labour and employment laws. In September 2024, Stewart McKelvey will be hosting a webinar to review…

Read More

Impending changes to Nova Scotia’s Workers’ Compensation Act – Gradual onset stress

June 4, 2024

By Mark Tector and Annie Gray What’s changing? Currently, workers’ compensation coverage in Nova Scotia applies to only a narrow subset of psychological injuries. Specifically, in Nova Scotia – as in all Atlantic Provinces –…

Read More

Appeal Courts uphold substantial costs awards for regulators

May 22, 2024

By Sean Kelly & Michiko Gartshore Professional regulators can incur substantial costs through discipline processes. These costs are often associated with investigations, hearings as well as committee member expenses and are an unfortunate by-product of…

Read More

Less than two weeks to go … Canada Supply Chain Transparency Reports are due May 31st

May 21, 2024

By Christine Pound, ICD.D., Twila Reid, ICD.D., Sarah Dever Letson, CIPP/C, Sheila Mecking, Hilary Newman, and Daniel Roth Introduction The first reports under the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the…

Read More

Court upheld municipality’s refusal to disclose investigation report

May 1, 2024

By Sheila Mecking and Sarah Dever Letson A recent decision out of the Court of King’s Bench of New Brunswick,[1] upheld the Municipality of Tantramar’s decision to withhold a Workplace Assessment Report under section 20(1)…

Read More

Occupational Health and Safety sentencing decision – Nova Scotia

April 29, 2024

By Sean Kelly & Tiegan Scott Earlier this month, the Provincial Court of Nova Scotia issued its sentencing decision in R v The Brick Warehouse LP, 2024 NSPC 26, imposing a monetary penalty of $143,750 (i.e.,…

Read More

Canada 2024 Federal Budget paves the way for Open Banking

April 22, 2024

By Kevin Landry On April 15, 2024, the Canadian federal budget was released. Connected to the budget was an explanation of the framework for Canada’s proposed implementation of Open Banking (sometimes called consumer-driven banking). This follows…

Read More

Reset for renewables: Nova Scotia overhauls energy regulation and governance in advance of influx of renewable energy

April 5, 2024

By Nancy Rubin and James Gamblin The Government of Nova Scotia has embarked on a path to dramatically reshape the regulation and governance of the energy sector with the passage of Bill 404, the Energy…

Read More

An employer’s guide to human rights law in Atlantic Canada

April 2, 2024

By Kathleen Starke and Annie Gray Human rights landscape Human rights legislation prohibits discrimination in specific contexts, including employment and the provision of services. In all Atlantic Provinces, Human Rights Commissions are responsible for enforcing…

Read More

Recognizing subtle discrimination in the workplace: insights from recent legal cases

March 4, 2024

By Sheila Mecking and Michiko Gartshore Subtle discrimination can have a much stronger and longer effect on employees when not properly addressed. It can also result in costly consequences for an employer who does not…

Read More

Search Archive


Scroll To Top