HALIFAX, NS — Public Service Superannuation Plan Trustee Inc. (PSSPTI) announced today the financial results of the Public Service Superannuation Plan (PSSP or the Plan) for the fiscal year ending March 31, 2025, along with the outcome of its legislated five-year funded health review.
For the fiscal year, the Plan achieved an absolute one-year return of 7.03 per cent. This performance exceeded the actuarial assumed rate of return of 6.50 per cent but did not reach the policy benchmark of 9.21 per cent. Net investment income totalled $562 million for the year.
“Benchmarks for key asset classes like real estate, infrastructure, and private equity remained historically high, and most peer plans faced similar challenges,” said Leo McKenna, Chair of the PSSPTI Board. “While returns fell short of the benchmark, the Plan’s absolute performance was solid, and our diversified asset mix continued to serve the Plan well.”
As at March 31, 2025, the Plan was 106.8 per cent funded on a going-concern basis, an increase of 3.0 per cent from the previous year. The Plan reported a surplus of $525 million, with net assets available for payment of benefits totalling $8.275 billion and actuarially calculated liabilities of $7.750 billion.
In addition to investment performance, PSSPTI continued its focus on membership growth through the launch of PSSP VANTAGE, a first-in-Canada initiative that offers employers new participation levels of 80% and 60%. This innovation is designed to broaden access to defined benefit pensions across Nova Scotia’s public, private, and non-profit sectors while maintaining fairness and cost-neutrality to existing members.
2025 Funded Health Review Outcome: Five Years of COLA (Indexing) Approved
As required by the Public Service Superannuation Act’s (PSSA) funding policy, PSSPTI conducted its five-year funded health review in early 2025. The purpose of this review is to evaluate the Plan’s ability to provide Cost-of-Living Adjustments (COLA, also referred to as indexing) for the next five-year period and to determine whether any changes are required to contribution rates or Plan benefits.
The Results
The 2025 Funded Health Review was based on the Plan’s funded status as at December 31, 2024. At that time, the Plan was 114.6% funded, with a funding surplus of $1.05 billion.
Following the Review, and in accordance with the PSSA’s funding policy, PSSPTI approved the following actions:
- Granting of COLA (indexing) at 2.61% per year for the next five-year cycle, from January 1, 2026, to December 31, 2030.
- Allocation of approximately $525 million of the funding surplus to the Plan’s strategic reserve to help protect long-term financial sustainability.
- Determination that contribution rates for members and employers were sufficient to support the Plan and no changes to contribution rates were required at this time.
After these decisions were applied, the Plan’s funded status was 106.8%, with a surplus of $525 million allocated to the strategic reserve as at December 31, 2024.
“I am very pleased to confirm that the Board has approved annual COLA of 2.61 per cent for pensions in pay from January 1, 2026, through December 31, 2030. The funded health review also confirmed that no other changes to the Plan were necessary at this time,” said McKenna.
The next funded health review will take place in 2030, based on the Plan’s funded status as at December 31, 2029.
-30-
For media inquiries, please contact:
Gisèle Taylor, Senior Communications Advisor
Nova Scotia Pension Services Corporation
C: 902-240-3244 | taylorgd@nspension.ca
www.novascotiapension.ca