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Management Discussion
and Analysis Pension Administration

PSPP Corporation is the administrator of the Public Service Pension Plan and the trustee of the Plan fund, and as such has a duty to act in the interest of Plan members and beneficiaries.

Our vision is:
“A well managed plan.
Well served members.”

PSPP Corporation is responsible for the administration of PSPP in the best interest of the Plan and Plan members. However, PSPP Corporation is required by legislation to contract day-to-day pension administration services to Alberta Pensions Services Corporation (APS). APS also manages the Member Services Centre on our behalf.

APS operates on a non-profit cost recovery basis with all costs being paid for by the pension plans served by APS. The services provided by APS are outlined in a pension service agreement between APS and PSPP Corporation. The agreement also sets out benchmarks for specified services to ensure that APS provides timely and accurate services to PSPP members. PSPP Corporation works with APS to determine how to best meet service requirements. APS provides PSPP Corporation with a Quarterly Service Report that reports on APS’ service levels and performance for the prior quarter and year to date. To understand emerging trends and current practices from other pension plans across Canada, PSPP Corporation attends peer group forums such as Quantitative Service Measurement.

$203

Total administrative
cost per member (in 2022)

Our goal is for members to see us as trusted partners in their retirement journey. We continue to enhance the services we provide by leveraging our existing communication and digital channels. Some of the enhancements initiated in 2022 included our paperless initiative.

Pension Administration Cost

All of the costs involved in the management and administration of PSPP are paid by Plan members and employers out of the PSPP fund.

Pension administration costs include all expenses incurred by PSPP Corporation as well as fees charged to PSPP by APS for day-to-day administration. APS fees are calculated pursuant to a cost-recovery framework based on PSPP membership, transaction levels and other cost drivers. Administration costs in 2022 were $14,151,000. See Note 12 of the PSPP financial statements for information about administrative expenses.

PSPP's administrative cost per member (including active members and pensioners) in 2022 was $203.

Enjoy the health I have, travel when we can and spend time with our grandchildren and children. As you get older more health issues arise and we are better able to deal with them without worrying about an income coming in. I feel we’re blessed in Canada to retire with a PSPP pension and be able to enjoy it!!

Barbara

Guy in blue shirt smiling at camera

Paperless Initiative

PSPP Corporation has been moving forward on a paperless initiative since 2021 in an effort to control costs and to improve security of information. As part of these efforts, members have been strongly encouraged to sign up for Your Pension Profile (YPP), a secure online portal where they can manage their pension information, download tax documents and ask questions using a secure messaging system.

As of December 2022, 55.3% of PSPP members - active, deferred and retired - had registered for YPP. With the paperless initiative and a series of outreach efforts, the registration will further increase.

PSPP Corporation announced in December 2022 that member forms will no longer be accepted through employers.

The paperless initiative extends to member onboarding as well. New members will receive an electronic letter welcoming them to PSPP, outlining the benefits of membership, and including a link to a short orientation video.

Member Engagement

Alongside enhancing some of the services, our Member Sessions improved to provide more tailored sessions to the specific needs of members.

In 2022, a total of 98 group sessions were delivered, resulting in approximately 122 hours of education provided to our members. Over 2,500 members participated so far.

The topics of the sessions
included the following:

  • Working with your Pension
  • What happens if…Your life events
  • Transferring and Buying Service
  • Preparing for your Retirement
  • Pension Options
  • Step by Step to Retirement
  • Life in Retirement
  • Your Pension Profile – a Live Walk Through
PSPP Aupe Convention 2022

PSPP Corporation exhibitor booth at the AUPE convention

Our employers also play a very integral role in ensuring the overall success of the Plan. As such, touchpoints with our employers are key.

Employer Meetings

In the fall of 2022 PSPP Corporation Executives began meeting in person with PSPP employers, starting in Southern Alberta, to promote the value proposition of PSPP and the support we provide to employers. Employers recognize the value of PSPP as an attraction and retention tool but welcomed additional help communicating the value of the Plan to their current employees and future hires.

Employers were excited to meet and engage with the PSPP Corporation team and used this meeting as an opportunity to make suggestions to our pension reporting processes, ask questions and/or clarify Plan Text rules. A key takeaway from employers is that they are looking for posters and other communications to promote the Plan’s value proposition to their employees and prospective employees.

Employer Round Table Sessions

During the 2022 year, PSPP Corporation held two roundtable events, one in the Spring and one in the Fall. Roundtable events give employers an opportunity to network with their peers while

discussing various ideas and issues with their reporting obligations. The roundtable forum also gives PSPP Corporation the ability to update Employers to any changes to Plan benefits or administration and add valuable employer training to better support their employee/member needs.

Both 2022 sessions were held virtually, with 63 attendees representing 27 employers at the Spring session and 46 attendees representing 18 employers at the Fall session.

Plan Amendments

One of the PSPP Sponsor Board’s responsibilities is making and amending Plan rules.

In 2022, the Sponsor Board updated the terms under which members can remove their funds from the Plan. Previously, a member who terminated before age 55 could still withdraw their CV after age 55. As of July 1, 2022, members can no longer withdraw their CV after age 55 regardless of when they terminated. This change was made to ensure fairness amongst all members regardless of their age at termination.

Management Discussion and Analysis

Plan Funding Investment Performance Plan Financial Highlights Pension Administration