On May 1, 2001, the province of PEI signed a new Teachers’ Pension Transfer Agreement which covers all provinces except Newfoundland. Previously, PEI only had Transfer Agreements with Saskatchewan, Manitoba, New Brunswick, Nova Scotia and Newfoundland. Even though Newfoundland was not signatory to this new agreement, the prior agreement that PEI had with that province will remain in force for the time being.

Under this new agreement, teachers will be able to transfer pensionable service between the province’s party to the agreement. Transfers will be based on the Actuarial Value of the teacher’s pensionable service in both the importing and exporting plans. Differences in calculated value could be attributable to differences in salaries, benefits, economic assumptions and other assumptions used by the two plans. Factors such as the annual real rate of return, the annual inflation rate, the annual interest rate, the projected salary increases in each plan could all have an impact on the amount available for transfer. The above are not meant to be all inclusive but are only examples of factors impacting on the calculated value to be transferred.