The Multi-Employer Pension Plan (MEPP), a plan that covers members in federally regulated workplaces, will see benefit increases!
Due to the plan’s stability and performance, in addition to market conditions, the Trustees, based on the advice of the Plan’s Actuary, have decided to provide this benefit increase. Even after providing this increase, the plan’s financial position remains strong and is expected to stay that way in the future. It’s possible that if the plan’s funded status remains healthy that the Trustees and their advisors may consider providing benefit increases in 2025 and 2026. The Trustees and advisors monitor market conditions carefully and regularly, and won’t shy away from improving benefit improvements when it’s prudent and possible.
What Does This Mean For You?
Retirees will see a 25% increase in their monthly payments starting with the February 2024 payment, which will also include the adjustment for the January 2024 increase.
Contributing members, who either make contributions or for whom contributions are made on or after January 1, 2024 will also benefit. Their pension accrual rate will increase by 25%! So, for every dollar of contributions made after January 1, 2024, your pension accrual rate will rise from 0.92% to 1.15%.
The pension fund will issue more information in the coming weeks, make sure you’re signed for the newsletter by going to https://www.iammepp.ca/contact.html to make sure you’re contact and mailing information is up to date.
“ This is an all-around win for all members who belong to this plan, working and retired, and clear evidence that belonging to a pension plan is a sure way to build retirement security. These improvements partly reflect the due diligence and care that the Trustees, along with our advisors under the direction of Trustees, take in managing the viability and health of our members’ pensions.” commented David Chartrand, Canadian General Vice President.
David Chartrand went on to say that, “IAM pension plans are among the best in Canada, and ranked 9th out of 52 comparable pension plans, both in terms of performance and administration. It pays to be a union member, even once you’re retired- the difference unions make in working people’s lives and retirees is irrefutable.”
For any questions related to this, please contact Ivana Saula, Research Director isaula@iamaw.org
