Pension & Benefits

• The sector is joining a defined benefit pension plan offered through CAAT and a comprehensive group benefits plan (medical, dental, orthodontic, vision, life and long-term disability coverage, EFAP, emergency travel coverage) through the Health Association of Nova Scotia (HANS).
• Plans will follow employees no matter where they work as long as they remain eligible and employed by a provincially licensed and funded child care centre or family home agency in Nova Scotia participating in the HANS and CAAT plans.
• Operators and their employees will be onboarded to these new plans over the next 12 months, beginning in May 2024 and completed by December 2024. Employees will receive a one-time retroactive employer pension contributions to January 1, 2024, regardless of when they enrol.
• The province will fund operators for 100% of employer contributions towards HANS and CAAT plans.
• Licensed family home child care providers will receive grant funding to purchase their own health benefits and support their contributions to a Registered Retirement Savings Plan.
• Wages will increase for ECEs working in provincially licensed and funded child care centres and family home child care agencies on April 1, 2024. This adjustment is in addition to regular public sector economic increases that ECEs began receiving last year. The updated wage scale is now available.

What kind of pension plan is being offered?

A defined benefit pension plan is being provided through CAAT, which means: Predictable and guaranteed retirement income, conditional Inflation protection increases. Survivor benefits. Early retirement features. A fully funded and sustainable pension that is not reliant on the financial health of any one employer.

What kind of group benefits plan is being offered?

A comprehensive group benefits plan through the Health Association of Nova Scotia (HANS), including: Health, Dental, Life and Disability Insurance for employees. Health, Dental and Life Insurance for an employees’ spouse and dependent children. Access to the Employee and Family Assistance Program (EFAP). Emergency Travel Coverage.

Who’s providing the group benefits plan?

The Health Association of Nova Scotia (HANS) provides the group benefits plan, a not-for-profit non-government organization with over 60 years of service. They serve over 30,000 active employees and 10,000 retirees and are one of the largest, longest-standing provider of group benefits administration services in Nova Scotia’s health system.

Who’s providing the defined benefit pension plan?

CAAT provides the defined benefit pension plan, a not-for-profit organization managed by a joint employee and employer board. They offer pensions to 86,000+ members across Canada. They are 124% funded as at January 1, 2025 for great benefit security.

Who is eligible for newly announced group benefit?

ECEs and support staff employed by a provincially licensed and funded child care centre or family home child care agency. Employees must be hired on either a permanent basis or a temporary basis for 12 months or more. Employees must work at least 14 hours per week per their employment contract (40% of a regular work week). The entirety of the individual’s employment (all hours as part of the employment contract) must be dedicated to the delivery of child care at that organization (in or out of ratio). This includes Directors/Assistant directors, ECEs, untrained staff, cooks, inclusion supports, and administrators.

Who is eligible for newly announced pension plan?

ECEs and support staff employed by a provincially licensed and funded childcare centre or family home childcare agency. The entirety of the individual’s employment must be dedicated to the delivery of childcare at that organization (in or out of ratio). All permanent and temporary employees will start participating in DBplus on their date of hire. All casual Employees have the option to start participating in DBplus after completing either: 700 hours of employment with the Employer, or receiving earnings from the Employer of not less than 35% of the Year’s Maximum Pensionable Earnings, as defined under the Canada Pension Plan Act in each of two consecutive calendar years immediately prior to joining the DBplus provisions of the Plan.

What is considered permanent and temporary employment?

Permanent full-time: Permanent employees working full-time hours each week. For example, 35 or 40 hours. Permanent part-time: Permanent employees working less than full-time hours each week. For example, 10 hours per week, or 20 hours per week. Temporary contract: Employees working consistent part-time or full-time hours for a set contract length – for example, 12 months. This includes individuals filling in for parental leaves. Casual: Employees who do not work a set number of hours per week on a permanent basis. This includes substitute ECEs and summer students. Casual employees are not eligible for or required to participate in pension and benefits.

Will Licensed Family Home providers be able to join the plans?

Individuals working in family homes are self-employed, therefore a different approach was taken. Licensed family home providers (classified ECEs and others) receive grant funding to support RRSP contributions and to source their own health benefits.

Will unionized centres be required to join the plans?

Yes.

Do those eligible have to join the plans?

All eligible employees must participate in the life insurance, long term disability insurance, and pension plans however employees may opt out of health and dental coverage if they are currently covered through their spouse (proof of coverage is required).

Why are support staff being required to join plans?

Group benefits plans work best when all employees participate and therefore help spread risk and costs across the highest number of people. Our goal is to ensure that all employees working in the sector can access the benefits they need, not just some. Through this work, all eligible employees will have access to comprehensive health, dental, life, disability and extended benefits to ensure their health and wellness needs are supported, and they are able to receive predictable payments throughout retirement.

When will organizations and their employees begin transitioning to the plans?

All employees have access to an Employee and Family Assistance Program (EFAP) beginning January 2024. The sector began enrolling in the group benefits and pension plans in May 2024. Following the announcement, work began to provide employers and employees with the information needed to understand the group benefits and pension plans. Given the large number of employers and employees enrolling, enrollment occurred in four phased groups throughout 2024: May 1, July 1, October 1, and December 1. All organizations were enrolled by December 31, 2024. Regardless of when an operator onboarded, the Province funded a one-time retroactive contribution for employees’ pensions, backdated to January 1, 2024

Why can’t all organizations enrol at the same time?

Hundreds of organizations and thousands of employees needed to enrol in these new plans, so a phased approach was required. Rushing the process could have resulted in errors that impacted group benefits coverage and pension contributions.

How will enrollment dates be determined for each organization?

Enrollment groups were based on factors such as whether an organization already had a group benefits plan in place and the complexity of transitioning the organization. Phasing gave operators time to move from current benefits plans, if applicable, to the new plans. The Department and plan providers worked with employers to determine which phase made the most sense.

Will all prescriptions currently covered on existing plans be covered on the new group benefits plan?

If an individual is already receiving coverage for a prescription drug through their current Employer Health Plan, they can provide proof of prior coverage at the time they transition to the new benefits plan. If the drug is on the HANS formulary, it will be covered without requiring a prior authorization process. If it is not on the formulary, it will require a prior authorization process. More details will be provided to individuals about this process.

What will employees have to pay for these plans?

All employees must pay 35% of the total cost for their group benefits costs (employer pays 65%) and 5% for their pension contribution (employer pays 5%). The specific amount deducted from each individual’s pay will be based on the type of coverage they determine (family versus individual coverage), and their rate of pay.

Will Operators have to pay anything out of pocket to cover their employees’ contributions to pension and benefits plans?

No. The Province is fully funding the employer contribution at 65% for the HANS group health benefits and 5% for the CAAT Defined Benefit Pension Plan. The Province is also fully funding the HANS membership fee for all organizations, the cost of HANS’ extended benefits administration services, and the cost of the HANS payroll service for any organization that chooses to use it.

If an employee changes centres, will their pension and group benefits plan move with them?

Yes, these plans give ultimate flexibility to employees throughout their entire career in Nova Scotia’s provincially licensed and funded early learning sector. Their plan access will remain the same as long as they continue to work in provincially licensed and funded early learning and child care centres or a family home agency in Nova Scotia that is participating in the group benefits and pension plans.

Do employees have to pay any membership fees to participate in the group benefits or pension plans?

No, employees are not required to pay any membership fees. Membership applies only to employers, not employees, and the Province will be fully funding employers for their membership fees.

How many centres currently have group benefits and pension plans?

According to surveys conducted by the Department, approximately 65% of centres currently have some form of benefits plan, but coverage varies greatly. Only about 25% of the sector has some degree of retirement benefits, many of which are Group Registered Retirement Savings Plans (RRSP).

Are any organizations exempt from joining the plans?

If an organization offers services in addition to early learning and child care, it may have existing group benefits and pension plans in place and the removal of individuals delivering child care from these plans may present undue hardship to the rest of the plan. In these circumstances they may be considered for an exemption, however the majority of organizations in Nova Scotia’s sector do not fall within this category. The Department will work individually with centres that offer services beyond child care to determine if an exemption applies. Limited other individual centre specific exemptions may be applicable.

How will events unfold?

Centres have now been onboarded, and the program is fully implemented. The Department will continue to support centres as the program operates, including providing onboarding guidance for new centres entering the program and supporting existing centres as they expand to additional locations. The Department will also continue to connect operators with plan providers, including HANS and CAAT, and provide ongoing support as needed to ensure effective participation in the program.

I don’t work in the sector but want to stay connected to this work? How can I do that?

Our website will be updated regularly with recordings of our calls, FAQs and general information. You can also sign up for our newsletter for regular updates about this work, and much more.

Does any of this information apply to Pre-primary?

No. This information applies to provincially licensed and funded early learning and child care centres and family home child care agencies, outside of the school system. Pre-primary staff receive the benefits of collective agreements negotiated with their employers, which are the Regional Centres for Education (RCE) and the Conseil scolaire acadien provincial (CSAP).