PEBA's Transition to Not-for-profit FAQs

The Public Employees Benefits Agency (PEBA) is pursuing a new operating structure in order to better serve its plan members and employers. It will become a not-for-profit corporation (NPC), arm’s length from the Government of Saskatchewan.

There will be no changes to the pension and benefits plans that PEBA manages. They will continue to operate in exactly the same way, and will continue to be overseen by their respective boards. For members, their contribution rates, entitlements and services are not changing in any way.

Nothing changes for PSSP members. The NPC will have a contract with the Government of Saskatchewan to provide administrative services. The Government will continue to fund member pensions.

This effort was conceived and spearheaded by the Public Employees Pension Board and the Municipal Employees’ Pension Commission, the bodies that oversee their respective pension plans. Board and Commission members are appointed by employers and unions whose members are in the pension plans. The Board and Commission have been meeting with the employers and unions of members since 2021 to ensure they understand the changes that are underway, and that their members’ pensions will not be affected.

In addition to PEPP and MEPP, PEBA manages 11 pension plans and 16 benefit plans.

Characteristics of privatization include less regulation and typically involve the issuance of shares to private interests. In this case, there are no private interests involved. It’s simply a transition from government agency operation and oversight to operation and oversight by a not-for-profit corporation and board. There are no shares involved. Several protections are in place to prevent privatization: the control and oversight of representative boards, legislation governing the plans, and provincial and federal regulatory oversight.

In 2022, the legislative process began. It is anticipated that the new NPC will begin operating in 2024.

In order to establish PEBA as a not-for-profit corporation, given that it is currently an agency of the Government of Saskatchewan, legislative changes are required. After debate in the Legislature and discussion in the Standing Committee on Crown and Central Agencies, The Public Pension and Benefits Corporation Act received Royal Assent in the Saskatchewan Legislative Assembly on May 17, 2023.

PEBA is one of the last provincial government agencies in Canada that administers pensions on behalf of pension plan boards. Almost all other provincial plans are administered by an arm’s length organization, which is considered best practice. This change will streamline and strengthen governance by having the not-for-profit overseen by a skills-based, corporate board of directors.

Things are operating well right now at PEBA and in its relationship with the PEPP Board and MEPP Commission and the smaller pension plans. That means it’s an opportune time to take the next step toward best practice and ensure PEBA meets the plans’ needs now and into the future.

You can email pssp@plannera.ca or call 1-306-787-2684 or toll free 1-877-506-6377. We would be pleased to answer your questions.