|Questions regarding 2.33 / SA|
We had a question regarding what happens to the SA agreement that we had before...the answer is given below.
The bridge benefit will be calculated using the member’s combined group 2 and group 5 service.
Q18. What happens to a member’s SA account when they move to group 5?
A. The SA contributions remain in the Plan and earn interest until the member retires or transfers their pension benefit out of the Plan. The options to the member remain the same as they are today.
Q15. A few of my employees already have 35 years of service in the MPP. Should I transfer them to group 5?
A. Yes. Since group 5 enrolment is mandatory for all eligible members designated by the employer, members who have 35 years of service should be transferred to group 5. However, these members will not make contributions or accrue further service at either the 2.0 or the 2.33 accrual rate, and any members who contribute to an SA will have to stop. You must continue to report service and salary for these members, because this information is used to calculate their highest average salary for the pension benefit formula.
The Board’s terms and conditions for group 5 enrolment require mandatory participation in group 5 for all eligible members designated in the employer application. They also require the cessation of SA contributions.