The PSPP (the Plan) is a Defined Benefit Pension Plan that provides you with a lifetime of monthly payments upon retirement. This will be a valuable financial asset when you are ready to retire.
You are automatically enrolled in the Plan when you become permanently employed by a participating employer. You contribute to the Plan through regular payroll deductions, which are matched by your employer. Contributions to the Plan are mandatory if you are a permanent employee.
The Plan uses a formula to determine how much pension you will receive when you retire. The following components are used to calculate your PSPP benefit:
- your career average salary at date of termination;
- your total pensionable service at date of termination; and
- the rate at which your pension grows (ie. accrual rate) with each year of service
For more information, see the Plan Summary (PDF).