Finance and Treasury Board Minister Diana Whalen introduced legislation today, April 23, that could offer more security to university pension plan members and save universities millions of dollars.
For the first time, university pension plans can be transferred to the Nova Scotia Public Service Superannuation Plan.
“This historic legislation could help reduce costs at universities while giving more security to their pension members,” said Ms. Whalen. “It also makes sense for the Public Service Superannuation Plan, by opening the door for it to grow its membership.”
The University Pension Plan Transfer Act could benefit all universities, but particularly those with defined benefit pension plans, such as Acadia University.
Members of the Acadia University Pension Plan and the school’s board of governors have agreed to transfer 700 people to the Public Service Superannuation Plan. The trustee of the Public Service Pension Plan is reviewing the proposed transfer to ensure that it is cost-neutral to the provincial plan and its members.
The university estimates it will save $3.6 million a year, beginning in 2017.
The transfer is expected to be completed by July 1.