A defined benefit pension plan offers members predictability and security because it uses pensionable salary and years of pensionable service to calculate the pension amount. In other words, the pension you will receive is not based on investment growth or how much you have paid into the Plan over time.
MEPP also offers pension options to best suit members' unique retirement needs.
With MEPP, once you are vested in the Plan and eligible to retire, you will know exactly how much money you are going to receive each month.
Typically, you become vested in the Plan once you have earned five years of pensionable service, but this timeline can be affected by:
- transfers from another pension plan;
- turning 65 while you are an active member in the Plan; and
- joining the Plan after age 65.
If you are not vested and remove your funds from MEPP after leaving the Plan, you will receive only your contributions with interest. Vested members who leave MEPP before turning 55 years of age have the option of waiting to receive a lifetime pension or taking a lump sum payout based on the commuted value (CV) of that pension.