Information for employees in the defined contribution pension plan (hired January 1, 2009 or after)
If you were hired on January 1, 2009 or after, you are a member of the defined contribution pension plan. To learn more about this type of plan, please refer to the Defined Contribution Plan brochure.
The good news is that a defined contribution pension plan cannot go into deficit. You and McGill as your employer make set contributions to the plan over the course of your work life at McGill. When you retire, you receive a retirement pool of money that includes the total employee and employer contributions made plus the investment returns earned on those contributions.
However, if returns on the contributions invested are low, as they have been in recent years, your retirement pool will also be impacted accordingly.
To offset some of the impact of lower returns on investment and to provide a more stable retirement pool of money in the future, your contributions will rise in order to increase the size of your pool, starting January 1, 2013.
Contribution rates increased as of January 1, 2013 by 2 or 3% for all MUPP members older than 39 years of age.
- Members 40 to 49 years of age pay 7% of their gross salary to their pension, less 1.8% on the earnings subject to the Quebec Pension Plan (QPP).
Members aged 50 to 65 years of age pay 8% of their gross salary to their pension, less 1.8% on the earnings subject to the Quebec Pension Plan (QPP).
- There isno change in contribution rates for members 39 years and younger. Members 39 years of age and younger will continue to contribute 5% of their gross salary to their pension less 1.8% on the earnings subject to the Quebec Pension Plan (QPP).
Should additional amendments need to be made to the pension plan in order to ensure the long term sustainability of the plan, we will consult with members of the plan on such changes before they are brought forward for approval through the various governance structures.