Pension
Teachers' Pension Plan 2015The Nova Scotia Teachers' Pension Plan (TPP) and the Canada Pension Plan (CPP) are coordinated except as otherwise stated. ContributionsAll teachers contribute whether they teach for a year, a month or a day. The contributions are calculated as follows: To the TPP: To the CPP: This is the 2015 amount of the Year's Maximum Pensionable Earnings as prescribed by the Canada Pension Act. It is adjusted yearly according to the changes in the Average Industrial Wage in Canada. DeductionsContributions are deducted from each salary cheque. For teachers earning over $53,600 some monthly deductions will be larger than others. This is because the 4.95% contribution to the CPP is taken from the total monthly salary and accumulates each month until the maximum of $2,479.95 has been deducted. Once this amount of $2,479.95 has been deducted no further CPP deductions will be made. RefundsAs of January 1, 1988, teachers who leave teaching but do not retire, and who have been contributors to the Teachers' Pension Plan (TPP) for at least two years may not withdraw contributions in respect of service since January, 1988. Provincial laws require locking in of such contributions. The options available to the teacher are:
Teachers with less than two years' service who leave teaching will be eligible for a cash refund. Retired teachers who substitute will not make contributions to the Teachers' Pension Plan. If contributions are inadvertently taken from substitute pay, the retired teacher should contact the school board for which he or she substituted to arrange for a refund. Advice to teachers who are leaving teaching: contact the Nova Scotia Pension Agency (In Metro, 424-5070; toll-free, 1-800-774-5070) and ask "What are my pension options"? Under the CPP no contributions are refundable. However, there is provision for a return of any overpayment made by the teacher. There is provision on the annual income tax form to claim tax credit and/or a refund of such overpayments. IndexingTeachers retiring after August 1, 2006 will have indexing based on the funded level of the pension plan. If the funded level is below 90%, then there will be no indexing. If it is between 90% and 100%, the Trustees may pay 50% of CPI (Consumer Price Index). If it is above 100% funded, then full indexing will be paid unless it brings the funded level below 100%. No less than 50% of CPI will be paid at any time the fund is over 100%. The Trustees will pay an amount between 50% and full CPI as long as the fund does not go below 100%. Teachers retired prior to August 1, 2006 remain with CPI -1% unless they elected the new rules by July 31, 2006. Indexing will be paid in the month of July. List of BenefitsUnder the Coordinated Plan there are provisions for:
To view an outline of each select from the list above. Note:
Part-Time Employment - Full-Time ServiceFor the school year 2014-2015, teachers may elect to work part-time and make pension contributions to earn pension service equal to that earned in the previous school year. The maximum period that a teacher may participate in this arrangement is a total of two years in a lifetime. The teacher must work less days and earn less money than in the year prior to entering this arrangement. The agreement to work less time must be arranged between the teacher and the employer. The teacher must also work for a minimum of 40%. Pensions Based on Commuted ValueIt is possible for teachers age 55 to 59 who have from two to 19 years of service to receive a pension based on commuted value. Some of the service must have occurred since January 1989. The actual amount of pension will vary depending on the teacher's salary and certain actuarial assumptions such as rate of inflation and rate of investment return. Further details are available from the Nova Scotia Pension Agency. Refund Payments (TPP Only)When a teacher who has taught less than two years dies, the amount of his/her payments to the TPP shall be paid to the surviving spouse. If no spouse, to the children, then to the dependants of the teachers, if no dependants, then to the estate. DetailsFor further details on the Teachers' Pension Plan, contact Nova Scotia Pension Services Corporation, 902-424-5070, 1-800-774-5070 toll-free or visit their website. Further information on the Canada Pension Plan is available from your local Social Development Canada office, by calling 1-800-277-9914, or visiting their website. Retiring teachers please check the following for additional information:The Teachers' Pension Plan and Retirement Tips, a handbook containing information on pension, retirement service awards, group insurance benefits, Employment Insurance benefits and the Retired Teachers Organization is available for download (click here) or on request through NSTU Central Office 902-477-5621 or toll-free 1-800-565-6788. Click here to return to the top of the page. Contacts for further information:Nova Scotia Teachers Union Nova Scotia Pension Services Corporation Canada Pension
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Johnson Inc. Pension
Teachers' Pension Plan 2015The Nova Scotia Teachers' Pension Plan (TPP) and the Canada Pension Plan (CPP) are coordinated except as otherwise stated. ContributionsAll teachers contribute whether they teach for a year, a month or a day. The contributions are calculated as follows: To the TPP: To the CPP: This is the 2015 amount of the Year's Maximum Pensionable Earnings as prescribed by the Canada Pension Act. It is adjusted yearly according to the changes in the Average Industrial Wage in Canada. DeductionsContributions are deducted from each salary cheque. For teachers earning over $53,600 some monthly deductions will be larger than others. This is because the 4.95% contribution to the CPP is taken from the total monthly salary and accumulates each month until the maximum of $2,479.95 has been deducted. Once this amount of $2,479.95 has been deducted no further CPP deductions will be made. RefundsAs of January 1, 1988, teachers who leave teaching but do not retire, and who have been contributors to the Teachers' Pension Plan (TPP) for at least two years may not withdraw contributions in respect of service since January, 1988. Provincial laws require locking in of such contributions. The options available to the teacher are:
Teachers with less than two years' service who leave teaching will be eligible for a cash refund. Retired teachers who substitute will not make contributions to the Teachers' Pension Plan. If contributions are inadvertently taken from substitute pay, the retired teacher should contact the school board for which he or she substituted to arrange for a refund. Advice to teachers who are leaving teaching: contact the Nova Scotia Pension Agency (In Metro, 424-5070; toll-free, 1-800-774-5070) and ask "What are my pension options"? Under the CPP no contributions are refundable. However, there is provision for a return of any overpayment made by the teacher. There is provision on the annual income tax form to claim tax credit and/or a refund of such overpayments. IndexingTeachers retiring after August 1, 2006 will have indexing based on the funded level of the pension plan. If the funded level is below 90%, then there will be no indexing. If it is between 90% and 100%, the Trustees may pay 50% of CPI (Consumer Price Index). If it is above 100% funded, then full indexing will be paid unless it brings the funded level below 100%. No less than 50% of CPI will be paid at any time the fund is over 100%. The Trustees will pay an amount between 50% and full CPI as long as the fund does not go below 100%. Teachers retired prior to August 1, 2006 remain with CPI -1% unless they elected the new rules by July 31, 2006. Indexing will be paid in the month of July. List of BenefitsUnder the Coordinated Plan there are provisions for:
To view an outline of each select from the list above. Note:
Part-Time Employment - Full-Time ServiceFor the school year 2014-2015, teachers may elect to work part-time and make pension contributions to earn pension service equal to that earned in the previous school year. The maximum period that a teacher may participate in this arrangement is a total of two years in a lifetime. The teacher must work less days and earn less money than in the year prior to entering this arrangement. The agreement to work less time must be arranged between the teacher and the employer. The teacher must also work for a minimum of 40%. Pensions Based on Commuted ValueIt is possible for teachers age 55 to 59 who have from two to 19 years of service to receive a pension based on commuted value. Some of the service must have occurred since January 1989. The actual amount of pension will vary depending on the teacher's salary and certain actuarial assumptions such as rate of inflation and rate of investment return. Further details are available from the Nova Scotia Pension Agency. Refund Payments (TPP Only)When a teacher who has taught less than two years dies, the amount of his/her payments to the TPP shall be paid to the surviving spouse. If no spouse, to the children, then to the dependants of the teachers, if no dependants, then to the estate. DetailsFor further details on the Teachers' Pension Plan, contact Nova Scotia Pension Services Corporation, 902-424-5070, 1-800-774-5070 toll-free or visit their website. Further information on the Canada Pension Plan is available from your local Social Development Canada office, by calling 1-800-277-9914, or visiting their website. Retiring teachers please check the following for additional information:The Teachers' Pension Plan and Retirement Tips, a handbook containing information on pension, retirement service awards, group insurance benefits, Employment Insurance benefits and the Retired Teachers Organization is available for download (click here) or on request through NSTU Central Office 902-477-5621 or toll-free 1-800-565-6788. Click here to return to the top of the page. Contacts for further information:Nova Scotia Teachers Union Nova Scotia Pension Services Corporation Canada Pension
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