Question Period Note: PSPIB AND REVERA

CBC published an article on May 25 about the Public Service Pension Investment Board (PSPIB) and its relationship with Revera, a company that runs long-term care facilities in Canada and in other countries and is currently facing a class-action lawsuit related to deaths as a result of COVID-19. The President of the Treasury Board was interviewed for the article.

• Senior Canadians have built this country. Some of them literally fought for it. They’re my parents, your parents, our grandparents.

• As a society, we need to have an open and serious conversation about the way we treat our senior citizens.

• They deserve better. We deserve better, and we must do better.

• The PSPIB operates at arm’s length from the federal government. It is not part of the federal public administration and its multi-billion dollar business and affairs are managed by a Board of Directors. PSPIB investments decisions are its own.

• I am aware of the investments in Revera. I am also aware of reports of legal action against this company. On this, I have no further comments.

• The PSPIB is a crown corporation, established under legislation and its reports are tabled each year in Parliament.

• There is an established process for nominating members of the Board of Directors, based on recommendations from a nominating committee.

• Revera Inc. has been a wholly owned subsidiary of the PSPIB (also known commercially as PSP Investments) since 2007. The PSPIB is a Crown corporation established by Parliament by the Public Sector Pension Investment Board Act in 1999. The PSPIB reports to Parliament through the President of the Treasury Board, who is responsible for PSPIB’s legislation, and includes certain information about Revera Inc. in its annual report.

• The PSPIB operates at arm’s length from the federal government. It is not an agent of Her Majesty and its business affairs are governed by a 11-member Board of Directors. Since April 1, 2000, the PSPIB has been investing the amounts transferred by the Government of Canada on behalf of the pension plans for the public service, the Canadian Armed Forces – Regular, the Canadian Armed Forces – Reserve (since its establishment on March 1, 2007), and the Royal Canadian Mounted Police.

• The Treasury Board of Canada Secretariat (TBS) does not recommend the appointees to the PSPIB Board of Directors to the President, however, it does play the role of the secretariat to the Nominating Committee for the PSPIB. Qualified candidates are recommended to the President by this Nominating Committee.

• Pursuant to the Public Sector Pension Investment Board Act, the President of the Treasury Board is responsible for establishing a Nominating Committee whose mandate is to establish a list of qualified candidates for proposed appointment as a director of the board of the Public Sector Pension Investment Board. The Chairperson is appointed by the President of the Treasury Board after he or she has consulted with the Ministers of National Defence and Public Safety. Upon recommendation of qualified candidates by the Nominating Committee, the President of Treasury Board will make a recommendation for appointment to the Governor in Council.

• Revera Inc. is an owner, operator and investor in the senior living sector. Through its portfolio of partnerships, Revera owns or operates more than 500 properties across Canada, the United States and the United Kingdom, offering seniors’ apartments, independent living, assisted living, memory care, and long-term care.

KEY FACTS
• There is an established and merit-based process for nominating members to the Board of Directors. The President of the Treasury Board appoints members based on recommendations from a Nominating Committee.
• Revera is a wholly-owned operating subsidiary of PSPIB and is governed by a board of directors.
• Revera has been operating elder care facilities around the world for close to 60 years.
• Revera has its own sources of financing and prepares independent audited financial statements.