Small Bump Started on July 1
To ensure the Municipal Pension Plan continues to be healthy and sustainable in the future, a contribution rate increase of 1.4 per cent went into effect July 1, 2014. Plan members and employers will share this contribution rate increase. Members rates will increase 0.7 per cent of pensionable salary and employer rates will increase by 0.7 per cent of pensionable salary.
Effective July 1, 2014 Selkirk contribution rates are:
- For pensionable earnings up to $52,500 contribution rate: 8.50%
- For pensionable earnings over $52,500 contribution rate: 10.00%
- For all pensionable earnings - Selkirk's contribution rate: 9.92%
This rate increase was the result of the latest actuarial valuation, an independent financial review of the Plan's assets, liabilities, demographic trends and investment performance. The 2012 valuation report determined the following:
- There is an unfunded liability of $1,370 million;
- The Plan is currently 96.5 per cent funded;
- To address the shortfall in funds, the Municipal Pension Plan Board of Trustees increased the total contribution rate by 1.4 per cent of pensionable salary.
A document containing FAQ's for members is available on the Plan website.
For further information pertaining to this change please contact 1.800.668.6335.