PROPOSED CHANGES TO THE MUNICIPAL PENSION PLAN
Plan partners of the Municipal Pension Plan (MPP) have come to an Agreement in Principle (AiP) about proposed changes to update the pension plan and are proposing significant updates to the plan that will improve equity and, for most plan members, will result in an improved lifetime pension. The proposed changes will affect active members in the MPP and will ONLY apply to service earned after January 1, 2022. This means that nothing earned prior to January 1, 2022 will be changed or modified.
The proposed changes improve equity in the plan in three important ways:
1. Moving to a flat accrual rate
2. Moving to a single contribution rate
3. Removing the bridge benefits on future service and pre-age-60 early retirement subsidies
The plan partners believe the proposed changes, in addition to changes implemented over the past few years, will greatly improve equity in the plan, provide benefit improvements for most plan members, and protect the plan’s sustainability into the future.
The plan partners are looking to share the key components of the AiP and answer questions members might have before they make a final recommendation to the Board in spring 2021. HEABC is a member of the Plan Partner Working Group and supports these changes.
In mid-September, the attached Member Bulletin and promotional tools were shared with your Finance and Human Resource leads. Please consider sharing this same information more broadly with your staff. The poster, newsletter update and postcard may be used as-is, or integrated within your existing employee communications tools and channels. The Member Bulletin is for your information only.
The primary call to action is for plan members (employees) to go to the MPP Partners’ Redesign website at www.mppredesign.ca to read in detail about the proposed changes. The website provides tools and resources that explain the proposed changes for specific audiences, including FAQs, a short video on proposed plan design changes, an online calculator to estimate how the proposed changes may effect individual members, and a place for questions/comments to be submitted to the Plan Partner Working Group.
If you need to reach PHC’s Infection Prevention and Control Team (IPAC), please call local 69357. Do not contact individual IPAC team members.