September 2019

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LTD policy validation window Oct 1-31

It’s almost time – validate your group disability plan information by October 31

Use the LTD Policy Validation tool to validate your approved long-term disability (LTD) policy (also known as a group disability plan). The validation window is open October 1–31.

Why it’s important

When you have an LTD policy approved for pension purposes, your employees who are plan members are credited with pensionable and contributory service. No contributions are required from you or your employees.

Though submitting an LTD policy for approval is optional, we encourage you to apply to have an LTD policy approved for pension purposes.

Read on for details.


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E-remittance tips

E-Remittance tips to save you money and time

Whether you are new to pension remittance, you’re in the process of remitting contributions or you need to update your remittance with information about an employee, check out the E-Remittance How-to for everything you need to know!

Over the past several months, we’ve observed that many of you have incurred unwanted charges and heard from us more often than usual to follow up. The following tips will help save you from both:

  • When remitting a line 6 adjustment, indicate which pay period the adjustment is for and include the following items in the comments box
    • pensionable salaries
    • total employee portion
    • total employer portion
  • Remit contributions on time to avoid late interest charges
    • View Missing Remittances Report provides you with the upcoming due date
    • when a due date falls on a Saturday (e.g., July 27), payment is due Friday (e.g., July 26)
  • Remit to the penny
  • Use Balancing Help to make sure your remitted contributions match your payroll reports
  • When posting an E-Remittance, remember to fill in the transaction description

For more information, contact Employer Operations Finance.


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CRA maximum deduction limits

Corrected 2019 maximum deductible pension contribution limit information

The maximum deductible pension contribution limit is the amount your employees who are plan members can claim on their tax returns for pension plan contributions.

  • General and group 5 employees – $19,641
  • Employees in a special agreement group – $20,061

Correction: the special agreement group does not include group 5 employees, which was stated in the March 2019 newsletter. Group 5 employees cannot be in a special agreement group. The $20,061 limit applies to employees in a special agreement group.

These limits are calculated based on the year’s maximum pensionable earnings (YMPE).

How to use the limit:

  • Deduct, remit and report contributions on all pensionable salary
  • Report up to the maximum deductible contribution amount on 2019 T4 slips for employees who are plan members

Additional 2019 Canada Revenue Agency limits and values

YMPE

$57,400 (previously $55,900)

Defined benefit limit

$3,025.56

RRSP dollar limit

$26,500

Basic exemption amount

$3,500

Canada Pension Plan rates

Employee and employer rate

5.10% (previously 4.95%)

Self-employed rate

10.2% (previously 9.90%)

For more information, contact Employer Operations.


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New Pension transfer agreement for RCMP

New pension transfer agreement with the Royal Canadian Mounted Police pension plan

As of August 9, 2019, if you have employees who have been employed with the RCMP, let them know they may qualify to transfer service to the Municipal Pension Plan

More information


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Contact Confimation for Employers form

Send confirmation of contact information by November 1

The Contact Confirmation for Employers form will be ready for you in File Pick-up in October. Please review the form, and send changes only if needed, by November 1. (We will send you an email, with a link to these simple instructions, letting you know when the form is posted to File Pick-up.)

Why this is important

  • This information is confirmed annually with Canada Revenue Agency for annual pension adjustment (PA) reporting
  • It provides contact names and sort order information for distributing PAs and member benefit statements

More information


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Age 71 employee deadline

Reminder: November 30 is the last day employees aged 71 are eligible to contribute to the plan

Do you have employees turning 71 this year? There are a few things to consider.

Under the Income Tax Act, an employee must start receiving their pension no later than the end of the year they turn 71. This means if you have an employee who turns 71 this year, they must start collecting their pension no later than December 1 this year. It’s your responsibility to ensure you don’t collect contributions from such an employee after November 30.

Your employees who are age 71 can keep working without interruption, but you must stop collecting pension contributions from them. After you provide their employee information at termination/retirement using the Employee Information at Termination/Retirement (EITR) tool, remember to submit final salaries, service and contributions up to November 30 on your annual or segment Payroll Report.

For example: If you have an employee born in 1948 who turns 71 in 2019, stop collecting contributions for this employee effective November 30, 2019 – even if they turn 71 in December. Your Payroll Report must not include service, salary or contributions for this employee beyond November 30.

Encourage your employees to visit the plan website for information about their pension options and to go to My Account and apply to retire – it takes only eight clicks to complete the retirement application. Your employees can submit their pension application as early as 90 days before, and no later than 30 days before, their pension effective date. We recommend they apply for their pension as soon as they are eligible.

More information


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EPA reporting instructions

Electronic pension adjustment reporting is easier than ever

Tax season is hectic. You’ve got T4s to produce along with your regular payroll reporting duties. However, there’s no need to sort through scads of paper pension adjustments (PAs). Electronic pension adjustments (EPAs) are a real time saver.

When you become an EPA reporter, you access your PA statements on the secure employer website in File Pick-up.

Benefits of EPA reporting

  • You will receive your EPA file in time to include on your employees’ T4 slips
  • Your PA contact will be advised by email when your EPA file is ready for pick-up
  • It’s green

Follow these simplified instructions to become an EPA reporter.

Here’s what some of your peers have said about EPA reporting:

“Not only does it save us time and money, the process also meets our corporate sustainability commitment to be the BEST, as staff no longer distribute paper copies to over 800 employees.” – Pamela, compensation and benefits manager, City of Kelowna

“I have been doing this for five or more years and can’t imagine not using the electronic PA feature. Give it a try and you will be pleased with your success!” – Muffy, payroll and benefits clerk, School District 85

For more information, contact Employer Operations


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Read the 2018 Annual Report

The 2018 Annual Report is here – share the latest on the plan

The Municipal Pension Plan 2018 Annual Report is here, bringing you the latest on plan financial health, governance and services. Read the report on the plan website – then share the news!

Highlights include:

  • Plan performance through the year
  • Investment highlights
  • Membership and employer demographics
  • Plan rules and policy changes

Please encourage your employees to visit the plan website, read the annual report and learn more about the plan.


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MPP AGM
Oct 17, 2019

Come to the Municipal Pension Plan AGM – October 17, 2019

The Municipal Pension Plan annual general meeting is an opportunity to learn important information about your pension plan. This year’s meeting includes the following:

  • 2018 financial highlights
  • 2018 actuarial valuation report
  • Post-retirement group benefits review update
  • Investment update
  • Q&A with trustees

All members and employers are invited to attend. Join us in person or by webcast.

What
2019 Annual General Meeting

When
October 17, 2019
10:00 a.m.–12:15 p.m. (preview slides begin at 9:45 a.m.)

Where
Anvil Centre
First-floor ballroom
777 Columbia Street
New Westminster, BC

Or

Online at mpp.pensionsbc.ca

We hope to see you!


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Host a workshop

Let us know if you want to host free pension education

Did you know you can request a free in-house workshop for your employees?

If you have 20–35 employees, we can bring a free workshop to you.

You and your employees can experience the advantages of free pension education workshops without leaving town.

Did you know you can request a webinar for your employees?

Webinars are a great option for those who are located in a remote area or have a small group of employees.

Visit the Host a workshop or webinar page on the secure employer website for details, including posters you can put up in common areas.

More information


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Employer survey

Your voice matters in your employer survey

Your feedback helps us improve! Employers who use the secure employer website may be chosen to participate in a survey. It takes only 10 minutes to complete the survey and let us know what you think about the products and services provided to you as a plan employer.

Who

If you’ve signed in to the secure employer website at some point over the past year, you might be randomly selected to participate in a survey.

When

  • If you are selected, you can expect to receive an invitation in September to complete the survey.
  • You won’t be asked to complete another survey this year. Selected participants receive only one survey invitation in a calendar year.

Your feedback, including comments and suggestions, is anonymous and cannot be traced back to you.

Results to date

If you’re curious what your peers have shared, here’s a look at feedback from surveys completed in March 2019; “n” refers to the number of individuals who responded to questions on that topic. The phrases % very good/good and % right amount/enough refer to how well individuals believe a particular product meets their expectations.

Employer Bulletin
(n=233)

Member
News

(n=233)

Employer Instruction Manual
(n=233)

Employer Newsletter
(n=163)

% very good/good

Well organized and presented

92

90

85

95

Easy to understand

91

93

81

91

Relevant to you and your situation

n/a

n/a

n/a

85

Being delivered to you in a reasonable time

n/a

n/a

n/a

94

% right amount/enough

Amount of detail

92

91

74

94

Many thanks to those of you who completed surveys and those who will participate next time!


Legend
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