Income Taxes

Taxes are deducted from a member’s monthly pension payment, similar to those deductions made from earnings when a member was working.

Income tax deductions are based on the personal tax information a member has reported to MEPP. 

Members can review the amount of tax deducted from their pension by logging in to Your Pension Profile.

The amount of tax deducted from a member’s MEPP pension can be adjusted if:

• they become eligible for tax credits such as disability credit, dependent support credit or tuition credit; and/or
• they receive multiple sources of income and would like more tax to be deducted.

The member will need to complete a provincial or territorial TD1 form and/or a federal TD1 form, depending on the type of change they are requesting.

These forms can be found on the CRA website.

If a member’s information changes, such as their home address, they should update their information in Your Pension Profile or contact the Member Services Centre. The member's provincial or out-of-country tax rate will be adjusted accordingly.

MEPP recommends that members speak to an accountant, tax preparer or to CRA if they have questions about tax deductions.

A member’s T4A or NR4 is a summary of income from their pension plan, and it is used when they file their tax return. A tax slip is provided annually for any pension they receive that is administered by Alberta Pensions Services.

Members' tax slips are loaded into Your Pension Profile as soon as they are ready, which is typically early February. Logging in to the online account is the quickest way to receive a tax slip. Once logged in, members can find copies of all tax slips from MEPP on the Tax Slip page.

Printed copies of tax slips are not mailed if a member has selected “Go Green” or email as their communications preference in their online account.

If a member has not selected “Go Green” or they do not have an online account, a printed copy of their tax slip will be mailed by the end of February.

Please note that members who live outside Canada may receive an NR4 slip instead of the T4A.

The income tax deducted from a member’s pension varies based on the Canadian province, territory, or country in which they reside.

If a member moves out of province or country, they need to update their information using Your Pension Profile or by contacting the Member Services Centre. The member’s provincial or out-of-country tax rate will be adjusted accordingly.

Many countries have tax agreements with the Government of Canada, which means a member’s income may be taxed at a different rate. Members can find a listing of these agreements and tax rates on the Government of Canada's Benefits for Canadians Living Abroad page.

If a member is moving to (or currently living in) a country that does not have a tax treaty with Canada, the member’s MEPP pension will be taxed at a standard rate of 25%.