The PSPP Sponsor Board has approved several enhancements to PSPP that will take effect on January 1, 2027.
Work and retirement patterns are changing, and careers are no longer always linear. Some people are choosing to work longer or delay taking their retirement benefits.
The enhancements will help PSPP keep pace with these changes while providing more flexibility and value for members.
The full value of your pension benefit, right away
Today, members who leave PSPP before completing two years of pensionable service are generally entitled to their contributions plus interest.
Starting January 1, 2027, members who leave the Plan will be entitled to the full value of the pension benefits they have earned from the day they join PSPP.
Keep building your pension benefits
Until now, members who reached 35 years of pensionable service were required to stop contributing to PSPP and stop earning additional pension benefits.
Starting January 1, 2027, the 35-year cap is being removed. This means you’ll continue contributing to your pension and earning additional pension benefits for as long as you work. Members who had already reached the 35-year limit and stopped contributing will begin contributing again and continue building their pension.
Ensuring fairness after age 65
With more and more people working past age 65, there’s a need for PSPP to keep pace. Changes to PSPP will recognize members who choose to delay starting their pension beyond age 65. This means pensions that begin after age 65 will better reflect a member’s later retirement date.
All of these enhancements will happen automatically. There’s no special action required on your part. Tools and examples are being developed to help members understand how these enhancements may affect their future pension. More details on these changes will be shared in the coming weeks.