Working While Receiving a Pension
It is possible for members to return to the workforce after they begin to collect their MEPP pension. While there is no minimum amount of time required between starting a pension and re-entering the workforce, a member must have terminated their previous employment or taken a position where they no longer contribute to MEPP or the Public Service Pension Plan (PSPP).
If a member begins a new job with a MEPP or PSPP employer, they must let their employer know that they are currently receiving a MEPP pension and cannot participate in either plan.
Before re-entering the workforce after starting a MEPP pension, members should consider the following:
- Members cannot start contributing to MEPP or PSPP again to increase the pension amount they are currently receiving, even if they retired before age 65 and are receiving a reduced pension.
- Members can work for an employer with a different pension plan and, if eligible, contribute to that pension plan without impacting their MEPP pension.
- There may be income tax implications if members work while receiving a pension. If a member has income from multiple sources, such as a pension and current employment, they can request additional tax be withheld from their MEPP pension payment to avoid owing money at tax time. If a member would like to increase the amount of tax deducted from their pension, they can send in an updated TD1 form.