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Municipal > Plan Governance > Board > Police and Fire


Group 5 – Police Officers and Firefighters

What is Group 5?

The Municipal Pension Plan categorizes its members into five groups:

  • Group 5 is the newest member group. It was established January 1, 2010. Participation is limited to male or female police officers and firefighters.
  • Group 1 is males not in groups 2 or 5.
  • Group 2 is police officers and firefighters not in Group 5.
  • Group 3 is females whose last contribution to the pension fund was before April 1, 1971.
  • Group 4 is females not in groups 2, 3 or 5.

Group 5 has a different pension formula and contribution rates than the other groups and an earlier earliest retirement age than groups 1, 3 and 4.

What is the definition of a police officer?

The Municipal Pension Plan Rules defines a police officer as “a person appointed under the Police Act as a provincial constable, special provincial constable, designated constable, municipal constable, special municipal constable, auxiliary constable or enforcement officer, but does not include a person who is a member of the Royal Canadian Mounted Police.”

What is the definition of a firefighter?

The Municipal Pension Plan Rules defines firefighters as “persons who are employed in the fire sector as firefighters, as a fire chief and any other person employed in, or appointed to, a fire department and assigned to undertake fire protection services which includes fire suppression, fire prevention, fire safety education, communication, training of persons involved in the provision of fire protection services, rescue and emergency services and the delivery of all those services.”

Deputy and assistant chiefs, dispatchers, mechanics and supervisors who are employed in the fire sector at a fire department and assigned to undertake fire protection services are included in this definition of firefighter. The definition of firefighter does not include clerical, secretarial or administrative staff.

How is Group 5 different from Group 2, which is also for police officers and firefighters?

Groups 2 and 5 differ in a number of ways:
Pension formula
The pension formula used to calculate a memberís basic pension in Group 5 is different than the formula used for Group 2. This means Group 5 members will earn a larger pension benefit for the same salary and service.

  • Group 5 pension formula—(1.63% x HAS¹ up to the YMPE² x pensionable service) + (2.33% x HAS above the YMPE x pensionable service)
  • Group 2 pension formula—(1.3% x HAS up to the YMPE x pensionable service) + (2.0% x HAS above the YMPE x pensionable service)

Contribution rates
Members and employers in Group 5 pay higher contribution rates than members and employers in Group 2 because Group 5 members earn a larger pension benefit for the same amount of salary and service. This is valuable because police officers and firefighters can retire earlier. The contribution rates listed below were effective July 1, 2014.

  • Group 5 member contribution rates
    • 10.44 per cent of salary up to the YMPE
    • 11.94 per cent of salary above the YMPE
  • Group 2 member contribution rates
    • 8.50 per cent of salary up to the YMPE
    • 10.00 per cent of salary above the YMPE

Earliest retirement age (ERA)
The pension formula used to calculate a memberís basic pension in Group 5 is different than the formula used for Group 2. This means Group 5 members will earn a larger pension benefit for the same salary and service.

Special agreements (SA)
Members accruing pensionable service in Group 5 must stop contributing to their SA. SA contributions end the day before a member is enrolled in Group 5. SA accounts will continue to accrue pension interest until the member retires or terminates membership in the plan.

Participation
Participation in Group 2 is automatic for members who are police officers and/or firefighters. Participation in Group 5 requires the employer and the union to collectively bargain enrolment through an agreement and apply to the Municipal Pension Board of Trustees for approval.



¹Highest average salary is the average of a memberís highest five salary years.

²Yearís maximum pensionable earnings is a salary amount set by the federal government each year to determine the maximum annual contributions to the Canada Pension Plan. YMPE is used in the pension formula and contribution rate calculations.


More information for employers, unions and associations:

We are considering joining Group 5

We are enrolled in Group 5

MPP Employer blended contribution rate for Group 5
Document Size: 310876 bytes
Posted: September 26, 2016
MPP Employer blended contribution rates for Groups 1, 2 and 4
Document Size: 321603 bytes
Posted: September 26, 2016
Employer Group 5 Enrolment Application - Group 5 members will have higher accrual and contribution rates; Group 5 is limited only to police officer and firefighter employees.
Document Size: 83996 bytes
Posted: July 02, 2013
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