MPP

The MPP is reporting a surplus. It’s largely a result of higher than expected investment returns. That’s good news for the BCGEU members in Community Social Services and Community Health enrolled in the plan.

Here’s a snapshot of what we learned at the MPP’s board meeting on September 22, 2016: 

·         The MPP is fully funded at 104.6 per cent.

·         The discount rate was adjusted from 6.5 to 6.25 per cent. The plan absorbed more than $800-million in liabilities. What this means is the plan has to produce less of a return to meet its funding requirements.

BCGEU members working in community social services have until March 31, 2015, to purchase past pensionable service with the same employer, thereby increasing their guaranteed retirement income. 

Workers can use RRSP savings to buy past pensionable service - with no tax holdback if you do a direct transfer.

While it may seem costly to buy past pensionable service, you will increase your guaranteed retirement income - your paycheque for life. RRSPs can not promise the same benefit.