Joining
the Plan
Our pension plan is a shared risk model — which is why it’s called the Shared Risk Plan.
Your pension benefit is based on your years of service, how much you earn and when you joined the Plan.
As a shared risk plan, the Plan employs a risk-focused management approach aimed at delivering a high degree of certainty that full base benefits will be payable in most possible economic scenarios. That means it is built to withstand the most difficult economic situations, and to provide a pension that has a high level of security over time.
You and your employer contribute to the Plan while you’re an employee, and when you retire, you will receive a monthly pension payment for the rest of your life.
You must be vested to receive a pension benefit, which means you must have two years of credited service in the Plan or five years of continuous employment service.
The foundational concept of the Shared Risk Plan is to provide members with a pension that delivers:
In a shared risk plan like ours, the following are linked to the financial position of the Plan:
CONTRIBUTIONS:
How much active members and employers contribute
INDEXATION:
The cost-of-living increases applied to accrued pension benefits
BENEFITS:
The amount of pension benefits retired members receive
An actuarial valuation is conducted each year to assess the Plan’s financial position, and compares Plan assets with liabilities to determine the funding level ratios.
TERMINATION VALUE FUNDED RATIO:
Used to calculate benefits when a member ends employment, dies, has an eligible spousal relationship breakdown, or retires, in accordance with the terms of the Plan and the New Brunswick Pension Benefits Act.OPEN GROUP FUNDED RATIO:
Indicates the long-term financial health of the Plan and influences decisions on indexation and deficit recovery.
The actuarial valuation also includes two risk management tests, as granting indexation is subject to meeting the two risk management goals outlined in the Plan’s Funding Policy.
PRIMARY RISK MANAGEMENT GOAL:
The likelihood that base benefits will not need to be reduced in any year over the next 20 years.
SECONDARY RISK MANAGEMENT GOAL:
The average expected level of indexation over the next 20 years, for all members.
Refer to the table below to see when indexation can be granted in a given year and for missed years, as well as when benefit improvements can be introduced.
Primary Risk Management Goal met | Secondary Risk Management Goal met | Open Group Fund Ratio is above 105% | Open Group Fund Ratio is above 115% | |
---|---|---|---|---|
Indexation in a given calendar year is granted | ||||
Indexation for missed years granted | ||||
Benefit improvements are introduced |
Your contributions are automatically deducted from your paycheck and invested in the pension fund.
9%
of earnings contributed by regular employees
12%
of earnings contributed by Police and Fire Management Employees
Police and Fire Management Employee means a full-time or part-time non-unionized Employee of the Employers who meets the following criteria: (i) was previously employed, in any jurisdiction, in a unionized police or fire position, and (ii) is employed in a police or fire position with the Employers.
Your employer matches every dollar you contribute. Plus, until 2028, your employer will put in an additional 5% to improve the financial health of the Plan.
You can contribute and earn service in the Plan for the duration of your employment — there is no cap. However, income tax legislation has a maximum age you can contribute to a pension plan — which is 71 (at this age, you must begin receiving a pension).
If you go on an eligible leave, such as maternity leave or parental leave, you will have 12 months from the date you return to work to purchase that period of service.
The cost is based on the actuarial cost of the benefit being purchased and you will be required to pay the entire actuarial cost.
The Plan will cover the cost of calculating and processing the purchase. Any additional costs (for example, if you request additional calculations for that same period of service) will be paid by you.
To purchase service from a period of eligible leave, please contact TELUS Health at 1-855-201-7830.
When you enrol in the Plan, you will be required to choose a beneficiary or beneficiaries. You will be able to designate a beneficiary or beneficiaries on your enrolment form.
If you wish to change or update your beneficiary or beneficiaries, please use the Request for Change of Information Form and submit it to TELUS Health at info@frederictonsrp.org.
Please note: The Pension Benefits Act (New Brunswick) specifies that if you have a spouse, he or she is automatically your primary beneficiary. Even if you name someone else as your beneficiary, such as a child, your spouse will remain your primary beneficiary.
“Spouse” means:
COMMON-LAW PARTNER
A person who, not being married to you, is or was cohabiting in a conjugal relationship with you for a continuous period of at least two years immediately before the date of retirement.LEGAL SPOUSE
A person who is married to you.Your “legal spouse” is entitled to a right or benefit claim under this Plan over the competing claim of a “common-law partner” (unless the claim is barred by a valid domestic contract between you and the “legal spouse” or a decree, order or judgment of a competent tribunal).
Our pension plan is a shared risk model — which is why it’s called the Shared Risk Plan.
Your pension benefit is based on your years of service, how much you earn and when you joined the Plan.
As a shared risk plan, the Plan employs a risk-focused management approach aimed at delivering a high degree of certainty that full base benefits will be payable in most possible economic scenarios. That means it is built to withstand the most difficult economic situations, and to provide a pension that has a high level of security over time.
You and your employer contribute to the Plan while you’re an employee, and when you retire, you will receive a monthly pension payment for the rest of your life.
You must be vested to receive a pension benefit, which means you must have two years of credited service in the Plan or five years of continuous employment service.
The foundational concept of the Shared Risk Plan is to provide members with a pension that delivers:
In a shared risk plan like ours, the following are linked to the financial position of the Plan:
CONTRIBUTIONS:
How much active members and employers contribute
INDEXATION:
The cost-of-living increases applied to accrued pension benefits
BENEFITS:
The amount of pension benefits retired members receive
An actuarial valuation is conducted each year to assess the Plan’s financial position, and compares Plan assets with liabilities to determine the funding level ratios.
TERMINATION VALUE FUNDED RATIO:
Used to calculate benefits when a member ends employment, dies, has an eligible spousal relationship breakdown, or retires, in accordance with the terms of the Plan and the New Brunswick Pension Benefits Act.OPEN GROUP FUNDED RATIO:
Indicates the long-term financial health of the Plan and influences decisions on indexation and deficit recovery.
The actuarial valuation also includes two risk management tests, as granting indexation is subject to meeting the two risk management goals outlined in the Plan’s Funding Policy.
PRIMARY RISK MANAGEMENT GOAL:
The likelihood that base benefits will not need to be reduced in any year over the next 20 years.
SECONDARY RISK MANAGEMENT GOAL:
The average expected level of indexation over the next 20 years, for all members.
Refer to the table below to see when indexation can be granted in a given year and for missed years, as well as when benefit improvements can be introduced.
Primary Risk Management Goal met | Secondary Risk Management Goal met | Open Group Fund Ratio is above 105% | Open Group Fund Ratio is above 115% | |
---|---|---|---|---|
Indexation in a given calendar year is granted | ||||
Indexation for missed years granted | ||||
Benefit improvements are introduced |
Your contributions are automatically deducted from your paycheck and invested in the pension fund.
9%
of earnings contributed by regular employees
12%
of earnings contributed by Police and Fire Management Employees
Police and Fire Management Employee means a full-time or part-time non-unionized Employee of the Employers who meets the following criteria: (i) was previously employed, in any jurisdiction, in a unionized police or fire position, and (ii) is employed in a police or fire position with the Employers.
Your employer matches every dollar you contribute. Plus, until 2028, your employer will put in an additional 5% to improve the financial health of the Plan.
You can contribute and earn service in the Plan for the duration of your employment — there is no cap. However, income tax legislation has a maximum age you can contribute to a pension plan — which is 71 (at this age, you must begin receiving a pension).
If you go on an eligible leave, such as maternity leave or parental leave, you will have 12 months from the date you return to work to purchase that period of service.
The cost is based on the actuarial cost of the benefit being purchased and you will be required to pay the entire actuarial cost.
The Plan will cover the cost of calculating and processing the purchase. Any additional costs (for example, if you request additional calculations for that same period of service) will be paid by you.
To purchase service from a period of eligible leave, please contact TELUS Health at 1-855-201-7830.
When you enrol in the Plan, you will be required to choose a beneficiary or beneficiaries. You will be able to designate a beneficiary or beneficiaries on your enrolment form.
If you wish to change or update your beneficiary or beneficiaries, please use the Request for Change of Information Form and submit it to TELUS Health at info@frederictonsrp.org.
Please note: The Pension Benefits Act (New Brunswick) specifies that if you have a spouse, he or she is automatically your primary beneficiary. Even if you name someone else as your beneficiary, such as a child, your spouse will remain your primary beneficiary.
“Spouse” means:
COMMON-LAW PARTNER
A person who, not being married to you, is or was cohabiting in a conjugal relationship with you for a continuous period of at least two years immediately before the date of retirement.LEGAL SPOUSE
A person who is married to you.Your “legal spouse” is entitled to a right or benefit claim under this Plan over the competing claim of a “common-law partner” (unless the claim is barred by a valid domestic contract between you and the “legal spouse” or a decree, order or judgment of a competent tribunal).