Your Municipal Pension Plan (MPP) is a defined benefit plan. It offers security, value and predictability.
Best of all, there’s little you need do to realize these benefits as the Plan is managed by professionals on your behalf.
We've compared your MPP pension with a registered retirement savings plan (RRSP) so you can see the MPP advantage. Also, be sure to scroll down to view the Value of Your Plan video series for more information.
The MPP advantage
Your MPP Pension—
a defined benefit plan
Typical RRSP
Retirement income
is guaranteed
and predictable
Your retirement income is based on known factors such as your pay and time worked while you are a member of the Plan.
You know ahead of time what your retirement income will likely be. You also know it is guaranteed for as long as you live and may continue to your spouse or beneficiary after your death depending on the option you select at retirement. With this certainty, you can make decisions and plan for retirement.
Your retirement income is based on unknown factors such as the amount of money you can save, the performance of your investments, and the amount of income your savings can generate when you retire.
You don’t know ahead of time what your retirement income will be, so it is difficult to plan for retirement.
No work or worry
for you
Your employer automatically deducts your contributions from your pay, and automatically pays the employer contributions.
The Plan uses professionals to manage the Plan’s investments.
Your employer deducts your contributions from your pay and may pay matching contributions.
You have to understand investing and decide where you want to invest your money.
Peace of mind for
the future
Investment risk is shared by all in the Plan. Upturns and downturns in investment markets—both while you work and after you retire—will not affect your basic pension income.
Future cost-of-living adjustments are not guaranteed. The Board of Trustees must annually consider all relevant factors to determine if a cost-of-living adjustment will be provided.
You are exposed to investment risk as an individual. Upturns and downturns in investment markets—both while you work and after you retire—will affect your retirement income.
You can purchase a retirement fund that will provide inflation-protected retirement income, but this protection will lower your pension payments.
