Changes to the Municipal Pension Plan
September 17, 2020
To: Members enrolled in the MPP
We are happy to advise you that the plan partners of the Municipal Pension Plan have come to an Agreement in Principle (AiP) about proposed changes to update the pension plan.
The AiP is part of a comprehensive, multi-year review of the pension plan and builds on past changes made by the plan partners. These changes have included simplifying employer contribution rates (removing age and gender differentials), supporting a sustainable level of indexing and establishing a rate stabilization account to stabilize future contribution rates. Throughout the review, plan partners have been guided by the following principles:
- improve equity for members,
- align benefits with how the majority of members use them,
- set a strong foundation for the long-term sustainability of the plan, and
- stay within the current cost envelope.
Supported by a strong actuarial, legal and policy review process, plan partners are proposing significant updates to the plan that will improve equity and, for most plan members, will result in an improved lifetime pension (excluding the bridge benefit from age 65).
We encourage all participating plan members to visit the newly created www.mppredesign.ca site or log into the “My Account” page on the MPP website https://mpp.pensionsbc.ca
Lori Mayhew, Secretary-Treasurer
Christy Slusarenko, Vice President Combined Units