What makes the PSPP such a valuable retirement asset?

Membership in a Defined Benefit (DB) pension plan such as the PSPP brings with it several advantages which can help to achieve long-term financial stability and pave the way for a secure, worry-free retirement. Unlike a Defined Contribution (DC) plan, DB plans provide a predictable, lifelong income based on a formula that considers your salary history and years of service. Here are some of the valuable benefits of the PSPP.

1. Guaranteed income for life: no matter how long you live, you will receive a fixed, reliable income throughout your retirement.
2. Protection from market volatility: unlike DC plans, which are impacted by market performance and investment choices, members of the PSPP are shielded from market fluctuations and volatility which affect Plan returns.
3. Protection from inflation: your defined benefit pension is protected against inflation to help you maintain your purchasing power throughout retirement through a cost of living adjustment (COLA).
4. Spousal and survivor benefits: the PSPP provides options for you to designate the beneficiaries of your pension, as well as for insured medical benefits (if eligible).
5. Early retirement and disability benefits: if your age and pension credit equals 90 points (Factor 90), or if you're at least 60 years old and have 20 years or more of pension credit (60/20), you have the option of retiring early with an unreduced pension. In the unfortunate event you are no longer able to work due to a permanent disability, you may also qualify for a disability pension.

These and other features make the PSPP a valuable part of your overall retirement plan.