Interested municipalities and other public sector authorities could soon be able to transfer their pension plans into the Public Service Superannuation Plan.
The Municipal and Other Authorities Pension Plan Transfer Act introduced today, Nov. 1, could help local governments and other public sector organizations make the pension benefits they provide to their members more sustainable over the long term.
“Interested municipalities and other public sector organizations will be able to join a larger, stronger plan to provide increased security to their membership,” said Finance and Treasury Board Minister Randy Delorey. “Adding members to the Public Service Superannuation Plan under the terms of the act would also broaden the plan’s base, enhancing its financial health.”
In spring 2015 government enabled university pension plans to transfer into the Public Service Superannuation Plan. Government is now extending this option to municipalities and other authorities in the broader public sector.
The legislation could benefit all municipalities and eligible public sector organizations, but particularly those with defined benefit pension plans.
Any proposed transfer must be approved by the Public Service Superannuation Plan’s independent trustee. The trustee will ensure that the plan and its current members are not negatively affected.