Income Taxes

Taxes are deducted from your monthly pension payment, similar to those deductions made from earnings when you were working.

Income tax deductions are based on the personal tax information you have reported to MEPP. 

You can review the amount of tax deducted from your pension when you log in to Your Pension Profile.

The amount of tax deducted from your MEPP pension can be adjusted if:

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

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

These forms can be found on the CRA website.

If your information changes, such as your home address, update your information in  Your Pension Profile or  contact us. Your provincial or out-of-country tax rate will be adjusted accordingly.

We recommend you speak to an accountant, tax preparer or to CRA if you have questions about tax deductions.

Your Annual Tax Slips

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

Your tax slip is loaded into Your Pension Profile as soon as it is ready, which is typically early February. Logging in to your account is the quickest way to receive your tax slip. Once logged in, the Tax Slip page is where you can find copies of all tax slips from MEPP.

Printed copies of your tax slips are not mailed if you have selected “Go Green” or email as your communications preference in your online account.

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

Please note that, if you live outside Canada, you may receive an NR4 slip instead of the T4A.

Income Tax Considerations

The income tax deducted from your pension varies based on the Canadian province, territory, or country in which you reside.

If you move out of province or country, please update your information using Your Pension Profile or by contacting us. Your provincial or out-of-country tax rate will be adjusted accordingly.

If You Live (or Intend to Live) Outside of Canada

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

If the country you are moving to (or currently live in) does not have a tax treaty with Canada, your MEPP pension will be taxed at a standard rate of 25%.

Register for the new Your Pension Profile to manage your pension online!