MEPP Contributions

Thursday, 27 January 2011

Here is a brief explanation of why you will notice an increase in MEPP contributions on your pay stub and consequently a decrease in net pay, beginning Jan 1, 2011.

MEPP Contribution :

In January 2010, the first phase of contribution rate increases occurred for MEPP members. Rates went to 6.4 per cent from 5.4 per cent for general members and 8.75 per cent for designated police and firefighters. A further contribution rate increase on January 1, 2011 has bumped the rate up to 7.4 per cent and 10.2 per cent for emergency members. These contribution rate increases are matched by employers.

As a result you will notice an increased deduction on your January pay stubs for MEPP. (total earnings x 7.4% = your MEPP paystub contribution ).

Why are contributions increasing?

Contributions fund the Plan. For some time, the contributions being made have not been covering the cost of the benefits being earned by members. Contribution rate increases were chosen by the Municipal Employees' Pension Commission over benefit reductions as the preferred option to maintain Plan stability and keep the Plan fully funded. Increases beyond January 1, 2011 are not anticipated, nor are contribution rates expected to decrease. The Commission continues to monitor the financial health of the Plan and will notify members and employers of any future contribution rate changes.

MEPP

Municipal Employees' Pension Plan

MEPP Website: Click Here

Phone Number: 1-877-506-6377

The following MEPP documents are available:

Canada Pension Plan (CPP)

Were you were born in the years 1947 to 1951? If you have not retired yet, you should pay particular attention to four changes to the Canada Pension Plan (CPP).

The changes became law on December 15, 2009. Most take effect in 2012. Some workers born in the 1947-1951 years might wish to start drawing CPP retirement benefits before 2012 to have the old rules apply. Most may prefer the new rules.

Canadian Pension Plan

Finance Minister Jim Flaherty appears to be backtracking on his support for an expanded Canada Pension Plan (CPP) in the lead up to the finance ministers meeting Dec. 19 and 20 in Alberta.

Instead of making higher CPP benefits the top priority, Flaherty wants to create a pooled private RRSP system which is bad for Canadians—but good for Canadian banks and mutual fund companies.

We need your help. Canadians don't need the banks and financial industry getting another opportunity to gouge them out of their hard earned savings. We need leadership from our governments. Please visit CUPE's online action centre to send one final message to Prime Minister Stephen Harper and Finance Minister Jim Flaherty, reminding them doubling CPP is the best and most efficient way to help Canadians save more for their retirement and solve the pension crisis - and please share this message with your friends and co-workers.

Manulife Financial

Manulife Financial Website: Click Here
Phone Number: 1-800-268-6195
Group Policy Number: 22746
Certificate Number: Your Employee Number (found on monthly pay statement).