Order Amending Schedule I to the Public Service Superannuation Act: SOR/2018-195

Canada Gazette, Part II, Volume 152, Number 21

Registration

October 1, 2018

PUBLIC SERVICE SUPERANNUATION ACT

P.C. 2018-1209 September 28, 2018

Her Excellency the Governor General in Council, on the recommendation of the President of the Treasury Board, pursuant to subsections 42(3) footnote a and (4) footnote a of the Public Service Superannuation Act footnote b , makes the annexed Order Amending Schedule I to the Public Service Superannuation Act.

Order Amending Schedule I to the Public Service Superannuation Act

Amendments

1 Part I of Schedule I to the Public Service Superannuation Act footnote 1 is amended by deleting the following:

2 Part III of Schedule I to the Act is amended by adding the following in alphabetical order:

Coming into Force

3 This Order comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

Effective March 29, 2018, PPP Canada Inc. (PPP Canada) was dissolved. Amendments to Schedule I of the Public Service Superannuation Act are necessary to reflect the dissolution of this Crown corporation.

Background

PPP Canada was created in 2008 to spearhead the Government of Canada’s efforts to promote the use of public-private partnerships (P3) within the federal government. Its mandate was to improve the delivery of public infrastructure by achieving better value, timeliness and accountability to taxpayers through P3s.

PPP Canada has fulfilled its mandate and the P3 model is now a generally accepted approach across provincial, territorial and municipal jurisdictions. Accordingly, on November 1, 2017, the Governor in Council authorized the Minister of Infrastructure and Communities to dissolve PPP Canada. PPP Canada is now dissolved.

The Public Service Pension Plan

The Public Service Pension Plan (the Plan) is established under the Public Service Superannuation Act. The Plan is a contributory defined benefit plan that serves more than 592 166 active and retired members, survivors and deferred annuitants. The Plan is the largest of its kind in Canada in terms of total membership, covering substantially all employees of the Government of Canada. Members include employees of departments and agencies in the federal public service, certain Crown corporations and the territorial governments. Part I of Schedule I of the Public Service Superannuation Act lists governmental organizations participating under the Plan, including boards, commissions and corporations. As a result, employees of these organizations are members of the Plan.

The Governor in Council can add or remove organizations from Part I when a federal entity is established or dissolved. Governmental organizations which no longer exist or have left the Plan (e.g. to set up their own employee pension plan) are listed in Part III of Schedule I. These entities are deemed to have formed part of public service for pension purposes during the period they existed and their employees are entitled to the pension benefits accrued during the period they contributed to the Plan.

Pension coverage of PPP Canada’s employees

PPP Canada is included in Part I of Schedule I of the Public Service Superannuation Act. As a result, PPP Canada’s employees have been contributors to the Plan.

As part of PPP Canada’s winding down process, the majority of PPP Canada’s employees were transferred to other government departments and they continue to contribute to the Plan as federal public servants. Terminated employees ceased contributing to the Plan and, based on their particular situation (e.g. age and years of service), they are entitled to pension benefits available under the Plan. These benefits include an immediate pension, a deferred pension, a disability pension, an annual allowance or a transfer value. Under the Plan, terminated employees with less than two years of service receive a return of their contributions with interest.

Objectives

The objective of the amendments is to update Schedule I of the Public Service Superannuation Act to reflect the dissolution of PPP Canada.

Description

The amendments delete PPP Canada from Part I of Schedule I of the Public Service Superannuation Act and add PPP Canada to Part III of the Schedule. Part I lists existing governmental entities participating under the Plan, whereas Part III lists governmental entities which used to participate under the Plan.

“One-for-One” Rule

The “One-for-One” Rule does not apply to this Order because it does not impose any administrative burden on business.

Small business lens

The small business lens does not apply to this Order, as it will not impact small businesses.

Consultation

These amendments are administrative in nature and internal to federal government operations; no impact on former employees of PPP Canada is anticipated, as these changes do not alter their pension benefits. Accordingly, no consultations were undertaken.

Rationale

Since PPP Canada no longer exists, the corporation is removed from Part I of Schedule I of the Public Service Superannuation Act.

The addition of PPP Canada to Part III of Schedule I, as an organization that was deemed to form part of the public service, ensures that employment with PPP Canada, while it existed, is considered as employment in the public service for the purpose of the Plan. This addition ensures that individuals who were employed with PPP Canada and who again become contributors under the Plan can elect for that employment to count as a period of service in the public service under the Plan.

These amendments do not alter nor impact the accrued pension benefits of employees affected by PPP Canada dissolution. No costs would be incurred by the Government of Canada as a result of this change.

Contact

Deborah Elder
Executive Director
Pension Policy and Programs
Pensions and Benefits Sector
Treasury Board of Canada Secretariat
Ottawa, Ontario
K1A 0R5
Telephone: 613-952-3121