Province looking to allow organizations, businesses to join public sector pension plan

The Nova Scotia government wants to allow businesses and organizations outside the public service to be able to join the pension plan that civil servants, and some municipal staff, university and other public sector employees pay into.

A bill introduced Friday at Province House would open up the public service superannuation plan to any private sector group already with a pension plan, or any business that wanted to join it.

Existing plans would have to be fully funded to be eligible for transferring into the superannuation plan. Those who belong to a pension plan would get to vote on a possible merger.

To be successful, at least two-thirds of plan members must support joining the provincial plan.

Finance Minister Allan MacMaster said the government is acting on a recommendation put forward by the trustee that oversees the plan.

In a review last year, the board recommended dozens of possible changes that include pursuing "opportunities to merge other public, quasi public and private sector employer plans."

Lower age of contributors

MacMaster said expanding membership to the plan might lower the average age of contributors.

According to the latest annual report, the median age of active members is 48. There are currently as many retirees drawing from the plan as there are employees paying into it.

Expanding the pool of younger members is a way to ensure the plan has enough money to cover the pension benefits of those who will draw from it when they retire.

MacMaster also suggested joining the fund might appeal to employers looking to offer their employees an added benefit.

"For them to be able to offer a defined benefit plan, in a very simple way by joining this plan, that could be a nice feature that they can offer to attract employees and retain employees," said MacMaster.

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