PSSP & TPP - no longer considered "related plans"
The Public Service Superannuation Plan (PSSP) and the Teachers’ Pension Plan (TPP) are no longer considered to be ‘related plans’.
Historically, TPP members have been prevented from contributing to the PSSP while receiving a pension benefit from the TPP. This was due to the plans being considered ‘related’. Today, the plans have separate Trustees. The Trustee for the TPP is the Teachers’ Pension Plan Trustee Inc. (TPPTI) and the Trustee for the PSSP is the Public Service Superannuation Plan Trustee Inc. (PSSPTI).
Recently, the Trustee for the PSSP (PSSPTI) analyzed the Public Service Act with regards to this issue, obtained input from Canada Revenue Agency, and then determined that the two plans are no longer related plans. Specifically, subsections 54(1) and 54(2) of the Public Service Superannuation Act no longer apply to the Teachers’ Pension Plan.
What does this mean?
- Employees, who retire under the TPP and have an opportunity to work for an employer who participates in the PSSP, will now be able to contribute to the PSSP while in receipt of a TPP pension, assuming they meet the PSSP’s eligibility requirements.
- Employees, who retire under the PSSP and have an opportunity to work for an employer who participates in the TPP, will now be able to contribute to the TPP while in receipt of a PSSP pension, assuming they meet the TPP’s eligibility requirements.