On December 10, 2014, the Government of Newfoundland and Labrador signed a Joint Sponsorship Agreement (JSA) with the five largest unions representing the employees of the Public Service Pension Plan. This agreement provides for joint management of the pension plan and equal sharing of future surpluses and deficits in the pension fund between government and plan members. A pivotal element of the JSA is the establishment of an independent corporation known as the Public Service Pension Plan Corporation (PSPP Corporation) as a statutory corporation without share capital and which is not a Crown agent. The PSPP Corporation was established to administer the plan and manage the investment of the Public Service Pension Fund.
The Corporation is managed by a Board of Directors, the roles and responsibilities of which are defined in sections 36.3 through 36.4 of the Public Service Pensions Plan Act, 1991 and Appendix B of the Joint Sponsorship Agreement. The Board of Directors is accountable for the exercise and discharge of the objects of the corporation which are as follows:
For additional information on the role of the PSPP Corporation, please refer to:
Pursuant to the JSA, the Board of Directors is comprised of 14 persons who are to be appointed as follows:
There is a Chair and Vice-Chair of the Board of Directors. The initial Chair was appointed by Government from among the Directors. The initial Vice-Chair was appointed by the Unions from among the Directors. The Chair and Vice-Chair serve for a two year term. At the end of each term on a rotating basis, the Government Appointees will appoint a Chair or Vice-Chair of the Corporation from their Board members; and the Union Appointees will appoint a Chair or Vice-Chair from their members.
Each of the Government Appointees, as a collective, and the Union Appointees, as a collective, must possess competencies, by reason of experience, commitment or knowledge, in the following areas:
The Board of Directors must also ensure that all new Directors receive a comprehensive orientation, ensuring that they fully understand:
Continuing education opportunities will also be provided to all Directors so that they can maintain or enhance their skills and abilities and ensure that their knowledge and understanding of the objects of the Corporation remain current.
The following qualifications have been identified (as per the JSA):
A Board Director, in exercising his or her powers and discharging his or her duties, must also:
Additionally, according to the JSA, the Board of Directors should also possess the following personal characteristics:
Both the Government and the Unions must ensure that their appointees, as a collective, have these personal characteristics.
At the beginning of each fiscal year, the Board will schedule at least four meetings to be held during the year. Each Board Director will be provided the date, time and location of these meetings. No other notice will be required for these meetings. It should be noted however that any director may request the Chair to convene a meeting of the Board.
All meetings of the Board will be held within the Province. A meeting of the Board may be held by means of telephone or such other communication facilities.
Additionally, the Board may from time to time appoint a committee or other advisory body, it deems necessary. Membership of such committees/advisory boards may be comprised of Board Directors and/or persons other than Directors. Any such committee/advisory board may formulate its own rules of procedure, subject to such regulations or directions as the Board may make, including the frequency of meetings. Presently, the following sub-committees have been established:
A description of each of the above sub-committees is provided in the additional information section at the end of this profile.
Board members may also be expected to spend additional time to review materials and prepare for Board and Committee meetings.
Each Director must be a resident of Canada for the duration of his or her appointment.
All Directors will serve for a three-year term with the exception of the initial appointment of Directors. For the initial appointment of Directors:
No later than six months before the expiry date of a Director’s term, the Chair provides written notice to the entity that appointed the Director of the expiry of the term.
A Director continues to serve until their representative is appointed or they resign, in which case the entity that appointed that Director, within 30 days of receive notice of the vacancy, appoints a successor Director to serve for the remaining term of that Director.