Pension Contributions

As a MEPP member, you will make regular contributions to the Plan. They are automatically deducted from your pay and your employer for investment into the MEPP fund by the fund's Investment Manager.

Your contributions to MEPP are tax deductible, meaning they reduce the income on which you pay taxes every year. Your year-end tax slip from your employer will reflect the adjustment. Visit the Canada Revenue Agency's website for more information.

Both employees and employers make pension contributions to MEPP.

MEPP Contribution Rates (as of February 1, 2017)
Members 12.80%
Employers 17.20%
Total Combined Contribution Rates 30.00%

The Management Employees Pension Board (MEPB, or the Board) routinely monitors the financial health of the Plan and sets the total contribution rate required to fund the Plan. This rate necessarily changes over time; it is determined by the results of regular actuarial valuations performed by the Plan's actuary. The Government of Alberta sets the split of the total contribution rate between the employer and Plan members.

Eligible Salary

Your pensionable salary, up to an annual maximum limit, determines your pension contribution amount. Pensionable salary includes your gross basic pay for the performance of your regular job duties.

In MEPP, pensionable salary might also include the additional pay you receive while covering another position (sometimes called an "acting pay").

There are some types of pay that are not pensionable:

  • Overtime pay
  • Expense allowances
  • Variable pay (such as bonuses)

If you have questions about whether a type of pay is pensionable, speak with your employer.

Salary Cap

The Income Tax Act sets a maximum annual salary limit for pension calculations. This limit is known as the salary cap, and it changes every year. This cap ensures your benefit does not exceed the legislated defined benefit limits under current tax laws.

The salary cap amount is considered when calculating your highest average salary. If your salary exceeds the annual salary cap, and your employer participates in the Supplementary Retirement Plan (SRP), both you and your employer will also make contributions to SRP.

The maximum annual salary cap for 2018 is $147,222.

Maximum Amount of Service

One component of your pension calculation is pensionable service. The Plan's maximum pensionable service is 35 years, or 35 years between MEPP and the Public Service Pension Plan (PSPP) if you have Combined Pensionable Service (CPS). Service you purchase through a buyback or transfer into MEPP also counts towards your pensionable service.

While you no longer make pension contributions once you reach the 35-year service cap, you can continue to work. If you work for a MEPP employer, any increases to your salary will be considered in your pension calculation. If your salary increases after 35 years, your pension payments might also increase.