The Multi-Sector Pension Plan ("MSPP") is a multi-employer target pension plan. With over 15,000 active members, over 180 participating employers and over $400 million in assets, the MSPP offers many valuable features.
Government programs may not always provide adequate retirement income and with Canadians living longer, the possibility of outliving personal savings is real. The MSPP is designed to pay a pension for your lifetime in an effort to bridge this financial gap.
Rates of contribution are defined in your collective agreement and range from 4% to 10.5%. Your employer’s contribution rate can never be less than yours. Since these rates are determined by negotiation, members have a means to affect their pension benefit – the higher the contribution rate, the higher the benefit.
The MSPP target pension benefit is calculated using a formula based on the total contributions made to the Plan by yourself and your employer. Currently, the formula is $1.55/month for every $100 of contributions received. Because the formula is based on total contributions, your pension benefit is easy to calculate. This makes your retirement
With many participating employers - (usually in a common industry) - you can move from one Contributing Employer to another and continue to grow your pension.
You can retire as early as age 55 and start to receive your MSPP pension. Or, you can choose to work past age 65, and continue to accrue your pension benefit until age 71.
In the event of your death before retirement, the MSPP pays a death benefit to your spouse or beneficiary equal to your accrued pension.
In the event of your death after you start collecting your pension, a death benefit, if applicable, will be paid in accordance with the payment option chosen at retirement. If you have a spouse, Joint and Survivor pensions can provide your spouse with some financial security.