Examples & Illustrations

Understanding the 2027 PSPP Enhancements

The PSPP enhancements taking effect on January 1, 2027 are designed to provide members with greater flexibility and additional opportunities to build pension benefits.

Because every member’s situation is different, the examples below are intended to illustrate how the enhancements work and what they could mean for you. More detailed examples and calculations will be added closer to implementation.

Good to know: Contribution rates are not changing as a result of these enhancements.

Continuing to Build Pension Benefits Beyond 35 Years

Beginning January 1, 2027, the 35-year pensionable service limit will be removed from PSPP rules.

Example: Continuing to Work After Reaching 35 Years of Pensionable Service

You’ve reached 35 years of pensionable service but decide to continue working for your employer.

Today, once you reach 35 years of pensionable service, you stop contributing to PSPP and stop earning additional pensionable service.

Starting January 1, 2027, you will be able to continue earning pensionable service and building pension benefits for as long as you remain employed in a PSPP-participating position.

What Could This Mean for You?

  • More years of pensionable service.
  • Additional opportunities to build pension benefits.
  • A higher pension at retirement than would have been available under the previous rules.

Returning to Contributions After Reaching 35 Years

Example: You’ve Already Reached the 35-Year Limit

You reached 35 years of pensionable service several years ago and have continued working.

Starting January 1, 2027, pension contributions will resume and you will once again earn pensionable service while you remain employed in a PSPP-participating position.

What Could This Mean for You?

  • Continued growth in your pension benefit.
  • Recognition of your ongoing participation in the workforce.
  • Additional pensionable service earned after January 1, 2027.

Working Beyond Age 65

Beginning January 1, 2027, PSPP will better recognize members who choose to delay starting their pension beyond age 65.

Example: Delaying Retirement

You become eligible to start your pension at age 65 but decide to continue working.

Under the enhancement, your pension will better reflect your later retirement date when you eventually begin receiving your pension.

What Could This Mean for You?

  • Recognition for working longer before starting your pension.
  • Pension benefits that better reflect your actual retirement age.
  • Additional opportunities to build pension benefits if you continue working in a PSPP-participating position.

How the Enhancements May Work Together

Example: Continuing to Work Beyond Age 65

You have already reached 35 years of pensionable service and decide to continue working beyond age 65.

Beginning January 1, 2027, you may benefit from both enhancements:

  • You can continue earning pensionable service beyond 35 years.
  • Your pension will better reflect your later retirement date.

Together, these enhancements recognize members who choose to remain in the workforce and continue building their pension.

More Detailed Examples Are Coming

Additional examples, illustrations and educational resources are being developed to help members better understand the value of the 2027 PSPP enhancements and the opportunities they provide to continue building pension benefits.

Check back regularly for updates, or register for an upcoming webinar to learn more.