Summary of proposed changes:

IMPROVING LIFETIME PENSION – Removing Bridge & Early Retirement Subsidies

• By removing the bridge & subsidies, MPP will reallocate these funds to fund higher Lifetime benefits for all members.

RATE CHANGES – Move to Single contribution rates & Flat accrual rates

• Proposing:  A Single contribution rate of 8.61%, Flat accrual rate @1.9%
• Fair & Equitable to all members; Everyone will contribute at the same rate and receive the same proportional benefit.

PREPARING FOR THE FUTURE – Improving Long-Term Sustainability of the Plan

• Stabilizing contribution rates & safeguarding inflation adjustments.
• New Health Benefit Trust being implemented; this will allow the Trust to earn investment income which will help fund/improve Retirement benefits.

Final decision on these Plan changes are to be made in early 2021, with implementation effective January 2022.

For more information, visit www.mppredesign.ca