1. What change ends "mandatory retirement"?

In 2006, the government decided to amend The Saskatchewan Human Rights Code to change the definition of age. (The previous definition of age was "any age of 18 years or more but less than 65 years"; the current definition is "any age of 18 years or more"). The effect of this change, which became law on November 17, 2007, is that employers can no longer make retirement at age 65 mandatory.

2. What does the "end of mandatory retirement" mean for employees of Executive Government?

Employees in both the Public Employees Pension Plan (PEPP, defined contribution plan, or "new plan") and the Public Service Superannuation Plan (PSSP, defined benefit plan, or "old plan") can plan their retirements around their personal needs and interests, and will have the ability to choose to retire or continue to work beyond the age of 65.

After November 17, 2007, employees are no longer required to request approval to work beyond the age of 65.

3. How will benefits be affected for employees who work beyond age 65?

The government has a history of employing people over the age of 65, both by extension of normal employment and as new employees. The pension and benefit plans in place do not change.

With a few exceptions, these employees will continue to enjoy the same rights and privileges as all employees:

• Group Life Insurance will remain the same;
• Dental Plan will remain the same;
• Extended Health Plan will remain the same;
• Pension Plans:

• Disability Income Plan coverage for CUPE 600 and out-of-scope employees is not available once the employee reaches age 64 and 35 weeks; for those employees receiving plan benefits, these would end at age 65. (The Human Rights Code allows employers to make distinctions based on age in insurance-based programs). Members of the SGEU are covered by the SGEU Long Term Disability plan and will need to contact their plan administrator for information;
  
• Worker's Compensation for employees aged 63 and older is restricted to two years of coverage (Worker's Compensation is also an insurance-based program);

4. Is access to Canada Pension Plan (CPP) benefits affected if an employee works beyond age 65?

An employee can apply for, and receive CPP benefits at age 65 or later, even if he or she continues to be employed.

If one applies to begin receiving CPP benefits before they turn 65 (i.e. between the ages of 60 and 65), their Canada Pension Plan pension will begin:

• the month after they stop working, or
• at the point when they earn less than the allowable maximum pension payment (currently at $863.75) for two consecutive months.

Employees drawing CPP must notify their employer as CPP contributions must cease.

5. Can an employee retire and subsequently be re-employed?

While it is possible to be re-employed with the government, post-retirement, the employer cannot commit, in advance of retirement, to rehiring the employee after they have retired. To receive pension benefits and other associated benefits such as the retirement death benefit certificate and membership in the Retirees Extended Health Plan, the employee must actually retire, i.e. leave employment with the employer for a period of time. There should be no understanding at the time of retirement, that the employee will be returning to employment with the government. An employee who attempts to "make a deal" to retire and then be immediately re-employed is not really retiring, and making such a commitment may preclude the provision of retirement benefits.

6. If a retiree decides some time into their retirement to enter into a new employment relationship with the government, what are the implications?

Members of the old pension plan who have retired and are subsequently re-employed will be restricted to working a maximum of six months before their pension is affected; employment of greater than six months will result in their pension payments being suspended, as required by The Public Service Superannuation Act.

Departments should note that Section 23 of The Public Service Regulations, 1999, requires the employer to notify the Public Service Superannuation Board in writing if an employee superannuated under the old plan has been appointed to a position with the public service.

There are no such pension implications affecting post-retirement employment for those who retired under the new plan (PEPP).

All employees, regardless of the plan under which they have retired will, upon being rehired, be required to contribute to the new pension plan for the term of their new employment to a maximum of age 69.

Should their new employment relationship extend beyond age 65 benefits will be available as described in #3 above.