Coordination is an option that allows eligible MEPP members who retire before 65 to receive a temporary increase to their pension payments. Upon turning 65, when other kinds of retirement income often start to be paid, this temporary increase is removed and a permanent coordination reduction begins, resulting in permanently reduced pension payments.
Canada Pension Plan (CPP) and Old Age Security (OAS) are two examples of other retirement income. The permanent reduction to your MEPP pension payment will continue regardless of any changes to your federal benefit amounts or other retirement income sources.
If you select the coordination option, it is critical to ensure that your retirement income from all sources is enough to compensate for the permanent reduction to your MEPP pension payment, which will occur when you turn 65. You may wish to seek the advice of an independent financial professional to determine the best choice suited to your financial circumstances. Your choice cannot be changed after your first pension payment has been made.