We wish to inform our members that the reciprocity agreement between MEPP and the Saskatchewan Teachers Federation, facilitating transfers between MEPP and the Saskatchewan Teachers Retirement Plan (STRP), will terminate on June 30, 2024. Please plan accordingly and contact us for further assistance on how this change might affect your retirement planning.
If you join MEPP and have service in a previous employer’s pension plan, you may be able to transfer that service into MEPP.
Transferring service into MEPP increases your eligibility and pensionable service which may allow you to retire sooner and/or increase your monthly pension benefit.
The other benefit to consolidating your service into MEPP is there's one less pension to manage at retirement.
Portability agreements
With a portability transfer, you transfer your service from one registered pension plan to another. Under a portability transfer, the pension plan transferring your service out is the exporting plan. The pension plan receiving your service is the importing plan.
How transfers work
If you're considering transferring your service, a calculation will determine the amount needed to obtain an equal amount of service in MEPP.
If the amount required to obtain the service with MEPP is more than the amount available to transfer, you have the option to pay the difference within one year. If you don't make the payment within one year, the cost will be recalculated and you will be required to pay an upfront administration fee.
If the amount required to obtain the service in MEPP is less than the amount available for transfer, your previous plan will determine what can be done with the remaining amount.
Initiating a transfer
To initiate a portability transfer into MEPP, complete the MEPP Pension Portability Information Request form to obtain the transfer information.
Considerations
Before deciding to transfer, compare the provisions of both plans to determine the impact of a transfer. A transfer might increase or decrease your RRSP room. A cash refund would increase your taxable income for the year.
Here are some specific provisions to consider:
- Retirement benefits: When can you start receiving your pension with each plan?
- Retirement survivor benefits: What are the benefits available to a joint pensioner or beneficiary if you die after you retire?
- Indexing: Is the pension indexed?
- Pre-retirement termination benefits: What happens to the transferred amount if you die before you are eligible to retire?
Seek expert advice
You may want to discuss a potential transfer with the administrators of both pension plans, as well as with your financial planner or a tax expert before deciding to make the transfer.
You can also contact our Retirement Information Consultants who are CERTIFIED FINANCIAL PLANNER™ and QUALIFIED ASSOCIATE FINANCIAL PLANNER® professionals. They can answer your questions on this topic.
Make your decision
If you decide to proceed with the transfer to MEPP, complete the MEPP Pension Portability Information Request form and send to MEPP.