The Employer Bulletin is published as a service for the employers of MEPP. For further information or clarification, contact MEPP’s Customer Focus Coordinator: Phone: 787-2684 in Regina, Toll free: 1-877-506-6377 E-mail: [email protected]Please retain this MEPP Employer Bulletin for your reference. Employer Bulletin Municipal Employees’ Pension Plan Summer 2011 Employers Are The Face Of MEPP As a participating employer, you play an important role in the daily administration of the pension plan, especially with new and potential members. We rely on you to enrol new members, and to be a resource for members. You are the first line of communication with new MEPP members and those with the opportunity to join the Plan. We want to make sure you and your employees are well informed. To help you and your new employees, we’ve created It Pays to Belong, included with this bulletin. It Pays to Belong contains information relevant to all Plan members, but will be particularly helpful for your new employees. You can give them a copy on their first day when you discuss the Plan with them. If they have the option to join MEPP, this may help them understand why they should. If they are new to the Plan, it will show them some of the benefits of Plan membership. Should you have copies of an old FOCUSSheet called “Should I Join MEPP?” replace them with It Pays to Belong. Learn the Basics Another way to learn the basics of MEPP is by hosting a Ready, Set, MEPP presentation. This short presentation covers the basics of the Plan, and is useful to new members, existing members, and employers. By calling the MEPP Customer Focus Coordinator (CFC) at 798-2353 you can arrange a presentation for your staff - small numbers can be accommodated. The CFC is available during office hours. On Our Website MEPP provides ways to learn about the Plan through the MEPP website. The MEPP Member Booklet provides an overview of Plan provisions, while MEPP In-Depth information sheets cover more specific topics, like designating a beneficiary, or making transfers into MEPP. Frequently asked questions (FAQs) and a glossary of terms are available. The Employer Administration Guide is on the website and will help when guiding your employees through the enrolment process. Later this year, we will be changing the MEPP website to help you and your employees more easily find information.
Transcript
The Employer Bulletin is published as a service for the employers of MEPP. For further information or clarification, contact MEPP’s Customer Focus Coordinator:
Phone: 787-2684 in Regina, Toll free: 1-877-506-6377E-mail: [email protected]
P l e a s e r e t a i n t h i s M E P P E m p l o y e r B u l l e t i n f o r y o u r r e f e r e n c e .
E m p l o y e r B u l l e t i n
Municipal Employees’ Pension Plan
Summer 2011
Employers Are The Face Of MEPP As a participating employer, you play an important role in the daily administration of the pension plan, especially with new and potential members. We rely on you to enrol new members, and to be a resource for members. You are the first line of communication with new MEPP members and those with the opportunity to join the Plan. We want to make sure you and your employees are well informed.
To help you and your new employees, we’ve created It Pays to Belong, included with this bulletin. It Pays to Belong contains information relevant to all Plan members, but will be particularly helpful for your new employees. You can give them a copy on their first day when you discuss the Plan with them. If they have the option to join MEPP, this may help them understand why they should. If they are new to the Plan, it will show them some of the benefits of Plan membership. Should you have copies of an old FOCUSSheet called “Should I Join MEPP?” replace them with It Pays to Belong.
Learn the BasicsAnother way to learn the basics of MEPP is by hosting a Ready, Set, MEPP presentation. This short presentation covers the basics of the Plan, and is useful to new members, existing members, and employers. By calling the MEPP Customer Focus Coordinator (CFC) at 798-2353 you can arrange a presentation for your staff - small numbers can be accommodated. The CFC is available during office hours.
On Our WebsiteMEPP provides ways to learn about the Plan through the MEPP website. The MEPP Member Booklet provides an overview of Plan provisions, while MEPP In-Depth information sheets cover more specific topics, like designating a beneficiary, or making transfers into MEPP. Frequently asked questions (FAQs) and a glossary of terms are available. The Employer Administration Guide is on the website and will help when guiding your employees through the enrolment process.
Later this year, we will be changing the MEPP website to help you and your employees more easily find information.
Municipal Employees’ Pension Plan
It Pays To It Pays To It Pays To BelongBelongBelong
New to the Municipal Employees’ Pension Plan (MEPP)? Have the opportunity to join the Plan? Here are some things you should know – about pensions in general and MEPP specifically.
MEPP is a defined benefit pension plan serving members since 1973. Today, MEPP is a healthy, well-managed plan.
Retirement Income SourcesCanadians have three basic sources of retirement income: Employment pensions, government programs and personal savings. Less than half of Canadians are members of an employer-sponsored pension plan. By joining MEPP, you earn a pension on top of the government sources (Canada Pension Plan and Old Age Security) and personal savings like Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).
Tax SavingsBeing a MEPP member means your taxable income on each paycheque drops immediately by the amount you contribute to the Plan. This is different from RRSPs, in which your taxable income is not reduced until tax time.
Contributions Contributions to MEPP come off each paycheque, so saving for retirement is easy. As a member of MEPP, you don’t shoulder the burden of saving for your retirement yourself. Your employer contributes an equal amount every time you get paid.
ContributionsContribution Rates at January 1, 2011General Members 7.40% Designated Members 10.2% Your employer contributes at the same rate.
ExampleLet’s say you are a general member and your monthly salary is $2,000, each month you and your employer each contribute:
0.074 (your rate) x 2000 (your salary) = $148.00
As Your Pension GrowsThe FirsT Two Years
If you terminate within the first two years of your employment with a MEPP employer, you are entitled to your contributions, and any accumulated interest. MEPP will write you outlining your options.
aFTer Two Years Once you have been employed with a MEPP employer for more than two years, you are entitled to receive a pension from the Plan, and your funds must be used to provide you with retirement income. If you terminate, MEPP will send you a letter explaining what options are available.
MEPP also has benefits available for terminal illness and disability. If you die before retirement, your beneficiary will receive a death benefit from MEPP.
A Lifetime Pension BenefitWhen you retire and become a MEPP pensioner, you will receive a pension from MEPP for the rest of your life. You cannot outlive your pension. If you have a spouse at retirement, MEPP will provide your spouse a survivor benefit for their lifetime if you die. Should you retire before age 65, MEPP provides a bridge benefit, a payment you receive only until you are 65.
Want To Know More? There are many ways to answer your questions, and experience MEPP’s dedicated customer service.
● Phone or e-mail our staff with questions or to schedule an appointment for a personal consultation.
● Visit our website, perhaps to review the MEPP Member Booklet, where you will find more information about the Plan.
● After your first year of Plan membership, you can access MORe, MEPP’s online retirement planner.
● Attend a Ready, Set, MEPP presentation to learn the basics about MEPP.
● Spend a day at a RetireWithEase workshop to learn about retirement planning.
Here To ServePhone: Toll-free 1-877-506-6377 In Regina 787-2684
You can contact us Monday to Friday 8:00 a.m. to 5:00 p.m.
Web: www.peba.gov.sk.caPension CalculationLet’s say you are a general member with a Highest Average Salary* (HAS) of $2,000 a month ($24,000 a year) with 20 years of service at age 60.
Pension:The formula for the pension is 1.5% x HAS x Years of Service, so you would receive:
0.015 x 24,000 x 20 = $7,200 a year or $600 a month for your lifetime
PLUSBridge: The formula for the bridge benefit is 0.5% x HAS x Years of Service, so you would receive:
0.005 x 24,000 x 20 = $2,400 a year or $200 a month until age 65
*Your HAS is the average of your highest three years of pensionable salary.
