Transfers Into MEPP

MEPP has transfer agreements with a number of Canadian public sector pension plans. If someone were a member of another registered pension plan before joining MEPP, they may be able to transfer their former plan benefit entitlement into MEPP. The member may also be able to purchase prior years of service.

Both of these options impact a member’s pension calculation by increasing MEPP pensionable service, which increases the amount of pension they will receive from MEPP. This means that if a member transfers from their former pension plan into MEPP, their MEPP pension will be higher, and they may be eligible to retire sooner with an unreduced pension.

MEPP has the information and pension tools members need to get a transfer started, including a Pension Estimator to see how transferring service into MEPP might affect a MEPP pension. 

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Eligible Pension Plans in Alberta

Transfer from the Local Authorities Pension Plan (LAPP) , Public Service Pension Plan (PSPP) , or the Special Forces Pension Plan (SFPP) under the National Transfer Agreement: 

• To initiate a transfer, complete and submit the Appendix A: Transfer Information Request and Authorization form under the National Transfer Agreement. 
• The transfer application must be received by MEPP within one year of the date the member joined MEPP. 

Transfer from the Alberta Teachers' Pension Plan and Private School Teachers' Pension Plan under the Teachers’ Transfer Agreement: 

• To initiate a transfer, complete and submit the Application to Transfer Pension Entitlements between MEPP and Alberta Teachers’ Pension Plans form under the Teachers’ Transfer Agreement. 
• The member must have stopped participating in their former plan on or after Jan 1, 1995. 
• The transfer application must be received by MEPP within one year of the date the member joined MEPP.

Transfer from another eligible provincial pension plan* under the National Transfer Agreement:

• To initiate a transfer, complete and submit the Appendix A: Transfer Information Request and Authorization form under the National Transfer Agreement.
• The transfer application must be received by MEPP within one year of the date the member joined MEPP. 

*The National Transfer Agreement covers the following pension plans outside of Alberta:

Transfer from the federal Public Service Pension Plan under the Federal Transfer Agreement:

• To initiate a transfer, complete and submit the Appendix A2: Request for Transfer Estimate form under the Federal Transfer Agreement.
• The transfer application must be received by MEPP within one year of the date the member joined MEPP.

• A member cannot be active in their former plan, but their funds must still be held in that plan.
• A member must be active in MEPP when they apply to transfer their former plan service into MEPP.
• Some plans will not allow a member to transfer out if they are already entitled to an unreduced pension with them; members should check with their former employer or former plan’s administrator to see if this limitation applies to them.
• It is always a good idea to send the transfer application to both MEPP as well as the former plan’s administrator. 

With more pensionable service to a member's credit under MEPP:

• the member could become vested sooner, making them eligible for a lifetime pension;
• the member may be able to retire sooner with an unreduced MEPP pension; and 
• it may result in the member receiving a higher single pension benefit than if they were to receive separate pensions from multiple pension plans. 

Once MEPP has received a member’s transfer application, MEPP will calculate the cost of transferring the member’s former plan service into MEPP. MEPP will then send the member an information package with the transfer details, including the cost and applicable election timelines, so that the member can decide whether they wish to proceed with the transfer. The cost to transfer service from a former pension plan will depend on the benefit design under the member’s former plan and unique circumstances.

Pension plans use different benefit formulas. Because of this, the benefit a member earned in their former plan might not match the cost of buying the former plan service in MEPP.

If the benefit on the former plan service is at least as much as the cost of buying the former plan service under MEPP, the member will not have to pay anything else, and the full amount of service from their former plan will be credited as pensionable service under MEPP.

If the cost of buying the former plan service under MEPP is higher than the benefit on the service under the former plan, this will result in a transfer shortfall. The member will receive credit for a portion of their former plan service under MEPP, and they will have the option of paying the difference to receive credit for the transfer shortfall service in MEPP.

Paying for a transfer shortfall means a member could retire earlier with a larger MEPP pension than if they did not buy the transfer shortfall service. If a member chooses not to buy the transfer shortfall service at the time of the transfer but wishes to do so later on, the cost could be higher.

If a member leaves MEPP before reaching age 55 and elects to take a lump-sum payment instead of a pension, the transfer shortfall service they purchased will not be included in their commuted value calculation. Instead, they will receive a refund of what they paid for that service, plus interest.

Both a transfer into MEPP from a former pension plan as well as buying back transfer shortfall service, if applicable, can affect a member’s RRSP contribution room due to a Past Service Pension Adjustment (PSPA).