Both members and employers make regular contributions to MEPP. These contributions are automatically deducted from a member’s pay and remitted with the employer’s portion for investment into the MEPP fund by the fund's Investment Manager.
Members’ contributions to MEPP are tax-deductible, meaning they reduce the income on which a member pays taxes every year. Year-end tax slips from employers reflect the adjustment. Visit the Canada Revenue Agency's website for more information.
| 2025 Contribution Rates | 2026 Contribution Rates | |
|---|---|---|
| MEPP Members | 12.0% | 12.0% |
| MEPP Employers | 12.0% | 12.0% |
| Total | 24.0% | 24.0% |
The Management Employees Pension Board (MEPB, or the Board) routinely monitors the financial health of the Plan and sets the total contribution rate required to fund the Plan. This rate necessarily changes over time; it is determined by the results of regular actuarial valuations performed by the Plan's actuary. The Government of Alberta sets the split of the total contribution rate between the employer and Plan members.
Eligible Salary
A member’s pensionable salary, up to an annual maximum limit, determines their pension contribution amount. Pensionable salary includes gross basic pay for the performance of regular job duties.
In MEPP, pensionable salary might also include additional pay received while covering another position (sometimes called an "acting pay").
There are some types of pay that are not pensionable:
- Overtime pay
- Expense allowances
- Variable pay (such as bonuses)
For questions about whether a type of pay is pensionable, members can speak with their employer.
Salary Cap
The salary cap is set by the Plan rules and is considered when calculating a member’s highest average salary. If a member’s salary exceeds the annual salary cap, and their employer participates in the Supplementary Retirement Plan (SRP), both the member and their employer will also make contributions to SRP.
MEPP's 2026 salary cap is $196,611.00.
Maximum Amount of Service
One component of pension calculation is pensionable service. The Plan's maximum pensionable service is 35 years, or 35 years between MEPP and the Public Service Pension Plan (PSPP) if a member has Combined Pensionable Service (CPS). Service purchased through a buyback or transfer into MEPP also counts towards pensionable service.
While members no longer make pension contributions once they reach the 35-year service cap, they can continue to work. For members who work for a MEPP employer, any increases to their salary will be considered in their pension calculation. If salary increases after 35 years, pension payments might also increase.