Municipal Pension Plan Redesign – proposed changes
There are upcoming proposed changes to your Municipal Pension Plan (MPP), that will affect you.
The Pension Corporation has put together a quick and helpful 4-minute video to help explain these proposed changes, which can be found here: https://www.mppredesign.ca/general-members/
They have also supplied a wealth of information, calculators and tools for you to learn more about how these proposed changes will affect your Retirement.
Please visit www.mppredesign.ca for more information.
You are part of Group 1, when referencing the Pension groups.
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