CUPE members in the health sector have the opportunity to be members of one of four pension plans.
- Saskatchewan Healthcare Employees Pension Plan (SHEPP): defined benefit pension plan – www.shepp.ca
- Local Authorities Pension Plan (LAPP): defined benefit pension plan registered in Alberta – www.lapp.ca
- The Regina Civic Employees' Superannuation and Benefit Plan (RCPP): defined benefit pension plan – www.reginapensions.ca
- Public Employees Pension Plan (PEPP): defined contribution plan – www.peba.gov.sk.ca
What is the difference between a defined benefit pension plan and a defined contribution plan?
Defined Benefit Plan
- The benefits are “defined”, or guaranteed, for as long as the retiree lives. There is a “pension promise” – retirees can predict what their income will be for the rest of their lives.
- If there isn’t enough money in the fund, the employer (and sometimes employee) contributions increase.
- This is a collective approach, with working employees paying into the fund so that retiree benefits can flow out of it.
Defined Contribution Plan
- Defined contribution plans are also called money purchase plans.
- This is an individual approach – each employee has an individual savings account.
- Everyone’s “account” is a different size, depending on their salary, how long they’ve been in the plan, and the performance of their investments.
- On their retirement day, they are given the amount of money that is in their account (that might be bigger or smaller on that day, depending on market returns).
Health Benefit Plan
CUPE health sector members have an opportunity to be members of the following benefit plans:
- Core Dental Plan
- Extended Health and Dental Plan
- Disability Income Plan
- Life Insurance Plan
Contributions for the core dental, extended health and dental, and life insurance plans are paid in full by the employer on behalf of members. Contributions for the disability income plan are shared equally between employees and employers.
These plans are administered by Shared Service Saskatchewan (3sHealth).