Starting on April 1, 2005, the Province has been accounting for the Retention Fund program balance on a notional basis. This means the Retention Fund Program does not have money that has been physically or otherwise placed in a retirement or investment fund but holds the total fund amount as a liability on their financial statements and pays qualifying physicians as they apply.
Though the program has been accruing notional funds since 2005, it went through a development period including a ruling by CRA for tax purposes and began paying eligible physicians in 2012. According to program guidelines, FFS physicians who provide at least 15 consecutive years of service in the province will be eligible to receive a lump sum payment from the program upon leaving their New Brunswick practice. There is an eligibility allowance for brief leaves of absence as well as physician death or disability which is described in the program document, linked below.
In 2023, the program paid an average of $86,700 to approximately 30 physicians, many receiving over $100,000, which equates to about $2.60M.
Physicians accrue shares and years of service in the program for every year they continue to work as a FFS physician in New Brunswick. As with the dollar amount allocated to the program, shares are also notional. Shares are earned differentially based on a physician’s income on an FTE basis as well as how many years of service they have provided in the Province. The value of shares is calculated every year and is determined by the total of the program’s notional dollar amount divided by the total accrued shares. Government also provides interest on the notional fund based on their special purpose Government rate.
Physicians are not eligible for payment until they have fulfilled the conditions of the program as listed above. When a physician becomes eligible for payment, an application for payment from the program is made directly with the NBMS. However, once application is made, the physician is only eligible to provide Locum services, therefore physicians must ensure they are prepared to exit regular practice in New Brunswick.
FFS physicians can access their Retention Fund program statements online at any time using the NBMS Website’s My Account function. Statements outline how many shares and years of service a physician has accrued as well as the total notional dollar amount allocated to the program and the share value. More detailed information about the program is available in this program document. Physicians that would like more information on the program or to speak to the Program Specialist can contact the NBMS at support@nbms.nb.ca.