Question Period Note: Revera – Public Sector Pension Investment Board

The Public Service Pension Investment Board (PSPIB) and its investments, particularly its relationship with Revera Inc., have received consistent media attention in 2020 and 2021. Revera Inc., a company that runs long-term care and senior housing retirements residences in Canada, the United States and the United Kingdom, is currently facing a class-action lawsuit related to deaths as a result of COVID-19, and unions have called on the Government to transfer ownership of Revera so as to make it public. Recent media coverage has also focused on PSPIB’s partnership with Pretium, a joint venture that will invest in single-family home rentals across major markets in the southeastern and southwestern United States. Coverage focused on the venture’s handling of evictions from low-income racialized neighbourhoods in the United States.

·The Public Sector Pension Investment Board (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.
·The mandate of the PSPIB is to invest net proceeds from the contributions of the public service, Canadian Armed Forces, Reserve Force, and Royal Canadian Mounted Police pension plans in capital markets, in the best interests of the plan contributors and beneficiaries.
·PSPIB makes publicly available its Responsible Investment Policy which informs its investment activities and guides the way it conducts operations.
If Pressed (on Revera):
·We are aware of reports of legal action against this company and cannot comment further on matters before the courts.

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 in accordance with 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 an 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.
There is an established and merit-based process for nominating members to the Board of Directors of the PSPIB. The Governor in Council appoints members based on recommendations from the President of the Treasury Board, who selects qualified candidates from a list generated by an independent nominating committee.
The Treasury Board of Canada Secretariat does not recommend the appointees to the PSPIB board of directors to the President; however, it serves as 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 PSPIB. 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.
Notable events
June 2, 2020: The Ontario government took over the management of one of Revera’s long-term care facilities (Forest Heights) for a period of 90 days.

September 11, 2020: The Ministry of Long-Term Care lifted the mandatory management order that was in place and management of the facility reverted back to Revera.

September 23, 2020: The Speech from Throne committed the Government to working with the provinces and territories to set new, national standards for long-term care so that seniors get the best support possible.

November 8, 2020: The Manitoba Government launched an independent investigation into an outbreak of COVID-19 at the Maples Long Term Care Home. The final report, written by Dr. Lynn Stevenson, former associate deputy minister of British Columbia Health, makes 17 recommendations for Revera, the Winnipeg Regional Health Authority, the Health Incident Command Structure, and Manitoba Health and Seniors Care, along with several recommendations noted as additional consideration.

November 19, 2020: The leader of the NDP, Jagmeet Singh, held a press conference with representatives of PSAC and other bargaining agents to criticize the government’s handling of Revera and other long-term care facilities.

January 28, 2021: The Centre for International Corporate Tax Accountability and Research published a report titled Tax Dodging by a Canadian Crown Corporation, which outlined that “an in-depth analysis of Revera’s UK care homes indicates a pattern of aggressive corporate tax avoidance and may provide insights into Revera’s corporate conduct and culture in Canada.”

January 2021: The PSPIB announced the launch of a joint venture that will initially invest $700M into single-family rentals across major markets in the southeastern and southwestern United States. Negative media attention has suggested that PSPIB is putting profits over people, noting that Progress and Front Yard Residential, a company Pretium acquired in January, have filed for nearly 1,000 evictions between them since the beginning of the pandemic.

February 2021: the Manitoba Government committed to implementing all 17 recommendations outlined in the external review of Maples Long Term Care Home.
April 16, 2021: In a joint letter with 13 other bargaining agent members of the National Joint Council, PSAC requested that Treasury Board President Jean-Yves Duclos take the lead in talks between the Public Sector Pension (PSP) and ministries of health in each province with the goal to move Revera from private, to public ownership.
April 19, 2021: Budget 2021 proposes to provide $3 billion over five years, starting in 2022-23, to Health Canada to support provinces and territories in ensuring standards for long-term care are applied and permanent changes are made. To keep seniors safe and improve their quality of life, the federal government will work collaboratively with provinces and territories, while respecting their jurisdiction over health care, including long-term care. This work would ensure seniors and those in care live in safe and dignified conditions.

None