Joining the NBPSPP
Offering your employees a secure pension isn’t just a benefit — it’s a strategic investment in retention and long-term workforce stability.
The New Brunswick Public Service Pension Plan (NBPSPP) is a proven, professionally managed pension solution designed to deliver lifetime retirement income and peace of mind for both employers and employees.
The NBPSPP is New Brunswick’s largest pension plan and is extremely secure. Supporting its sustainable growth will allow more New Brunswickers access to a secure source of retirement income. Economic security for retirees benefits everyone.
Whether you currently sponsor a pension plan or are exploring options for the first time, joining the NBPSPP offers distinct advantages:
- A trusted, secure model – The NBPSPP is a jointly governed, shared-risk plan that balances long-term sustainability with meaningful member benefits. This model protects against the financial volatility and funding risks typically associated with traditional defined benefit plans.
- Professional management and strong governance – The NBPSPP is overseen by an experienced Board of Trustees and administered by Vestcor Inc., Atlantic Canada’s largest investment manager and a seasoned pension administrator.
- Cost predictability for employers – Contribution rates are stable and predictable, helping you manage budgets confidently while providing a valued benefit to employees.
- Proven results – The NBPSPP has a strong performance history and a clear track record of meeting funding and benefit security objectives, including providing cost of living adjustments to its members to ensure their pensions keep up with inflation. To date, the NBPSPP has been able to grant cost-of-living adjustments that fully match the rate of inflation.
- Ease of participation – Employers can join the NBPSPP under a well-defined governance framework, with guidance and support throughout the transition process.
- Support for employees – Members of the NBPSPP have easy access to the Member Services Team, a highly-rated, New Brunswick-based team with expertise on the NBPSPP. They are available by phone, email, or in-person. If your employees have questions about the NBPSPP, the Member Services Team has the answers.
- Initial discussions
We will help your organization answer any questions about the PSPP, how it works, and how it may impact the employees. We will provide support to all parties who are needed to make a decision on whether to join the PSPP. If your organisation would like to proceed, then a non-disclosure agreement is signed, and employee data is supplied to the PSPP for preliminary analysis. - Due diligence
Both your organization and the PSPP will perform due diligence. The PSPP will provide your organization with all information needed to perform its own due diligence and provide support for gaining the approval of any required group. An application to join the PSPP would be prepared and approved by your organization and the PSPP. - Employee communication
We will work with you to help inform and educate your employees. This can include holding information sessions, preparing communication materials, and providing financial tools. - Joining and onboarding
Contributions begin to be remitted on behalf of eligible employees, service begins to accrue under the PSPP, and the PSPP is responsible for plan administration. Your organization continues to be responsible for any existing retirement saving arrangement.
Your organisation would need to approve joining the NBPSPP.
The Board Trustees of NBPSPP are required to approve all new employers joining the NBPSPP.
Employees must be notified, and their approval, or collective bargaining agent’s approval, may be required depending on contractual obligations with your organization.
The Superintendent of Pension’s approval is only required if there is a transfer of assets.
Employees currently contribute 7.5% of pensionable earnings up to the YMPE and 10.7% of pensionable earnings above the YMPE.
Employers currently contribute 11.25% of pensionable earnings.
The contribution rates may be increased or decreased in the future in accordance with the plan’s Funding Policy.
Additionally, as of January 1, 2029 the contribution rates will be adjusted such that contributions will be equal between the employee and employer.
No. All costs for the NBPSPP are paid from within the plan. Any financial obligations are limited to the contributions required.
The funding policy limits any increases and decreases of contributions to 1.5% of pensionable earnings for employees and employees (3.0% total) based on the funded status of the plan. The plan is currently well funded, and the open group funded ratio based on the actuarial valuation as of January 1, 2025, was 136.5%.
The NBPSPP is governed by an independent Board of Trustees who hold a fiduciary duty toward the plan. The board is responsible for administering the NBPSPP in accordance with the Income Tax Act, the New Brunswick Pension Benefits Act, the plan text, as well as the funding policy.
The day-to-day administration and investment of the NBPSPP is conducted by Vestcor.
An independent auditor is responsible for verifying that the financial statements have been presented fairly by preparing an annual audit with generally accepted audited standards.
An actuarial valuation is completed annually to determine the funded status of the NBPSPP by a professionally accredited actuary.
Employers in the NBPSPP are required to remit required contributions and ensure employee information is up-to-date.
Employees would join for future service only which means that employees would begin accruing service in the NBPSPP, but they would keep their existing DC accounts. The DC plan could remain open for past balances.
Existing DC balances remain the employee’s property. They may stay in the current DC plan, be transferred to a locked‑in retirement vehicle, or follow your plan’s standard rules. The transition would not reduce past DC entitlements.
Not at this time. We would be interested in hearing from you if this is of interest to your organisation.