Cost to transfer service depends on the previous plan and your unique circumstance.
Pension plans use different benefit formulas. Because of this, the benefit you earned in your previous plan might not match the cost of buying the same amount of service in MEPP.
If your previous plan service costs at least as much as the MEPP benefit, you may not have to pay anything else, and the full amount of service will be credited to MEPP.
If the cost of buying MEPP service is higher than the benefit from your previous plan, this will result in a shortfall. You will receive a portion of the service credit you had originally earned, and you will have the option of buying back the difference.
Paying for this shortfall means you could retire earlier with a larger MEPP pension than if you did not buy the service. If you choose not to purchase the service now but do so later on, the cost could be higher. A purchase like this can also affect your RRSP contribution room due to a Past Service Pension Adjustment (PSPA).
If you leave the plan before 55 years of age and take a lump-sum payment instead of a pension, the shortfall service you purchased will not be included in your commuted value calculation. Instead, you will receive a refund of what you paid for that service plus interest. You will not be entitled to receive a pension in the future if you select this option.
Once we have received your application, we will calculate the cost of transferring your previous service to MEPP. We will then send you an information package with the purchase details, including the cost and timelines so that you can decide whether or not you wish to proceed with the transfer.