Pension Plan Info

Please note that the Newsletter is available at the following link:

http://www2.gnb.ca/content/gnb/en/departments/treasury_board/human_resources/content/pensions_and_benefits/pp/srp_cupe.html

Interested in learning more about your pension plan?

shared risk video

The key to a successful retirement is careful advance planning. That’s why your pension plan’s Board of Trustees has created a short video that will provide you with an overview of how your pension plan works. Whether you’re a long-time public servant or an employee who has just joined the plan, this video will help to highlight the most important aspects of your pension plan.

Running just over 4-minutes, this video is designed as a general introduction to your pension plan.    When it comes to understanding how  your pension plan works for you personally,  we encourage you to contact a member of the Pension and Employee Benefits Division (PEBD) with your questions.  You can reach PEBD at 1-800-561-4012.

Understanding how your pension plan works is the first step in planning a successful retirement.  Check out this new online resource today.


 Pension Plan: Frequently Asked Questions

1.   When will this new pension plan be in effect?

These changes will come in effect July 1st 2012.

2.    How will this affect my pension? Will I get the same benefit as now?

Generally speaking the benefit should stay about the same level as they are now for future service.

3.   How much are my contributions going to increase in order to improve our pension plan?

Starting July 1st 2012 contribution for full-time and part-time workers will be 9% of earnings and 10.1% for the employers.

4.   Will the pension formula change to determine how much I will get when I retire?  

For service accumulated until July 1st 2012 there is no change. The amount of pension accumulated until that date is the same and is not reduced. After July 1st 2012, the pension benefit will be calculated using a different method. It will be 1.4% times the earning in that year of service. That amount could be adjusted to the increase in the cost of living if the funding ratio of the plan is at the appropriate level. The bridge that you are currently getting if you retire from age 55 to 65 will not change and the amount remains the same.

5.   Is there any change in the reduction for early retirement? Can I still retire at 55?

Yes, there are some changes for early retirement. In the past you could take your pension at age 60 without any reduction. Starting July 1st 2012 and for service after July 1st 2012 there will be a reduction of 5% per year until age 65. No reduction will be apply to service accumulated before July 1st, 2012. You can still retire at age 55 but with a change in the amount of reduction.  In the past if you retire at age 55 there was a reduction of 3% per year between age 55 and 60. Starting July 1st 2012 and for service after July 1st 2012 there will be a reduction of 5% per year until age 60. In summary the reduction will be 5% if you retire between age 55 and 65. Again this will only apply to service accumulated after July 1st, 2012.

6.   What about indexing? Will it still be there?

Before July 1st 2012, the pension was adjusted by 2% every year. This guarantee is removed. Starting on July 1st 2012 indexing will be conditional if the funding ratio of the plan is at the appropriate level.  If the funding ratio is at the appropriate level you could get the increase in the cost of living measured by Statistics Canada and it could be more than the present 2%. This will be tested every year and if one year you do not get the full cost of living it could be given back to you when the plan reaches the appropriate funding level.

7.   Retirees - How does it affect them?

The only change for the retirees is indexing which will go from the current 2% to the conditional indexing formula. The retiree’s basic pension is not reduced and is not impacted by the changes.

8.    What will happen to Part-time Do we have to go into this plan? Is it mandatory?

Before July 1st 2012, part-time workers could only joined the Part-time and Seasonals pension plan if they wished. As of July 1st 2012, part-time will joined the full-time pension plan. This will be mandatory, meaning that you have to participate

9.  Is there going to be a pension when I retire? Will this really work?

The goal of all these changes is to protect the accumulated pension of our members and to put the plan in a better financial situation to provide the benefits in the future. In order to that we need more contributions from the workers and the employer and we need to reduce the risk when investing the funds of the plan.

10.  What is the New Eligibility and Participation Requirements?

pdfShared Risk Plan for CUPE Employees of NB Hospitals

If you need more information,  you can also send us your questions at this e-mail This email address is being protected from spambots. You need JavaScript enabled to view it..">This email address is being protected from spambots. You need JavaScript enabled to view it..  We will try to respond in a timely fashion.