Retirement means different things to different people. Whether you envision travelling, spending more time with family, pursuing hobbies, or simply enjoying greater flexibility, most of us share the same goals: good health, financial security, and the freedom to enjoy life after work.
Your financial goals and preferences are just as personal. Some people prefer to take an active role in managing their retirement planning, while others value the reassurance of a professionally managed pension plan.
The McGill University Pension Plan (MUPP) is designed to support you throughout your career and into retirement. This website provides the information and resources you need to understand your pension, make informed decisions, and plan confidently for the future.
Registration Numbers:
- Retraite Québec: 22266
- Canada Revenue Agency: 0299586
The MUPP is regulated by the Québec Supplemental Pension Plans Act.
What kind of pension plan is it?
Pension plans come in two basic styles:
- defined contribution plans (DC), and
- defined benefit plans (DB)
In a defined contribution plan, the amount of contribution is known in advance, but the amount of pension isn’t. The amount of pension you receive depends on the size of your “pension accounts” at settlement, your age and market conditions when you convert these savings into a retirement income. Depending on the long-term investment results you achieve, your defined contribution pension could be significantly higher than the pension you earn under a comparable defined benefit plan or significantly lower, for that matter. In a defined benefit plan, you receive a pension based on a formula (usually tied to service and pay). You do not have a “pension account” because your pension is paid based on the formula. It is your employer’s responsibility to ensure that contributions and investment earnings are sufficient to provide your pension.
If you were hired as of January 1, 2009 and eligible for the MUPP, it is a defined contribution plan (Part B). You and the University each contribute a certain amount to the plan every pay. You choose how you wish to invest these contributions from a range of investment options provided through the plan. When the time comes to settle, you use your pension holdings to provide a retirement income.
When and how can I join?
- If you are a full-time employee, including eligible term employees, you are encouraged to join the McGill University Pension Plan immediately. Membership in the MUPP will become mandatory after five years of continuous service. This applies to all academic, administrative and support, and trades and services employees, except those covered by a collective agreement with the Service Employees’ Union (SEU) Local 800 (Facilities and Ancillary Services, Printing Services and Data Centre), who participate in a separate pension plan.
- If you work part-time, including eligible term employees, membership is optional if in the prior year you:
- worked at least 700 hours, or
- earned at least 35% of the QPP earnings limit If you are a temporary employee
- If you are a temporary employee, you are not eligible to participate in the McGill University Pension Plan.
Eligibility for a pension plan is based on your primary position, the position where you receive the majority of your eligible earnings. You are only permitted to participate in one pension plan at a time. Contributions are made based on the earnings of the eligible position(s) only and as such, you may not have contributions made on all earnings. If you are eligible for the MUPP, you are not eligible for any other pension plans at McGill.
How much do I contribute?
Age Bracket | Required Employee Contributions* | |
|---|---|---|
All Members | Tenure Stream Clinical | |
| Up to age 39 | 5.0% |
Plus 0.5% |
| Age 40 to 49 | 7.0% | |
| Age 50 to 65 | 8.0% | |
*Less 1.8% of earnings up to the Québec Pension Plan earnings limit | ||
How much does McGill University contribute?
Age Bracket | Required University Contributions* | |
|---|---|---|
All Members | Tenure Stream Clinical | |
| Up to age 39 | 5.0% |
Plus 0.5% |
| Age 40 to 49 | 7.5% | |
| Age 50 to 65 | 10.0% | |
*Less 1.8% of earnings up to the Québec Pension Plan earnings limit | ||
Can I make Additional Voluntary Contributions?
If you are over age 65 and continue to work at McGill, you can choose to make additional voluntary contributions (AVCs) to the MUPP via payroll deduction. You may elect to contribute any amount up to the maximum amount permitted under the Income Tax Act and receive an immediate tax relief at source. It is important to note that the University does not match these contributions. AVCs are deposited into a non-locked-in transfer in account in your name. This account is also used to hold funds transferred into the McGill Pension Plan from other plans, including RRSPs (see section below on Transfers In). To make, modify or cancel your AVCs, login to Workday and use Change Benefits in the Pay, Benefits & Compensation Hub.
To learn more about AVCs, refer to the Contribution section in our Frequently Asked Questions.
What fees do I pay?
Investment Fees
The fees applied for the various investment options offered under the MUPP can be found in Morningstar, a leading provider of investment news and analysis via the Sun Life secure site > Manage Plan > My Plan > Plan Overview > Account fees.
In addition, a 2% short-term trading fee will apply if you move money in and out of the same fund within 30 days.
Record Keeping Fees
The following record keeping fees apply for members of Part B (defined contribution plan) and are deducted from your account on a monthly basis. They include taxes and are subject to an annual indexation adjustment:
| Effective Date | Annual Amount |
|---|---|
| October 1, 2025 | $132.22 |
File
| $147.03 |
Who makes the investment decisions for my and the University's contributions?
When you join the MUPP, you must decide on your investment allocation. See: Investments for more information.
What if I do not choose an investment allocation?
If you do not choose an investment allocation, all contributions will be invested in the Balanced Account, the default fund.
How will contributions affect my RRSP room?
The Canada Revenue Agency (CRA) currently limits the amount you may contribute to an RRSP to 18% of your previous year’s “earned income” to a maximum dollar limit.
As a member of a registered pension plan, this limit is reduced each year by a pension adjustment (PA), which reflects the value of your benefits in the MUPP. The PA for your defined contribution pension is simply the total contributions (employee, University and AVCs) made during the year. To find out how much you may contribute to your RRSP; refer to your most recent Notice of Assessment from CRA.
Can I transfer in funds?
All transfers into the plan are considered Additional Voluntary Contributions (AVCs) and are deposited into an AVC account. Funds held in your AVC account may not be withdrawn or transferred while you are employed at McGill. Withdrawals under the Home Buyer's Plan (HBP) and Lifelong Learning Plan (LLP) are not available from the MUPP.
If you transfer funds into the MUPP, you will not be able to access them until the earlier of termination of employment, retirement or age 71.
From a registered pension plan (RPP)
If you participated in a registered pension plan (RPP) with a former employer, where permitted by legislation, you may transfer non-locked amounts which will be tracked as non-locked transfers in.
If you transfer locked-in amounts, these will be tracked separately as locked transfers in and administered as per the province of legislation of where the money comes from.
From a registered retirement savings plan (RRSP)
If you currently hold a registered retirement savings plan (RRSP), you may transfer amounts from your RRSP into your MUPP account.
These monies will be tracked separately as non-locked transfers in. Alternatively, you can transfer these monies into the McGill University Savings Program - Group Registered Retirement Savings Plan (RRSP).
From a locked-in retirement account (LIRA)
If you currently hold funds in a locked-in retirement account (LIRA), you may transfer amounts from your LIRA into your MUPP account.
These monies will be tracked separately as locked transfers-in. Alternatively, you can transfer these monies into the McGill University Savings Program - Group Locked-In Retirement Account (LIRA).
Options at retirement and/or termination and fees
Non-locked transfers in: may be received as a cash payment (less withholding taxes), transferred to an RRSP, or used to buy an annuity.
Locked transfers in: are subject to locking-in provisions and in general, may not be withdrawn in cash and must be used to provide a retirement income.
The MUPP does not charge a fee to accept transfers-in from an RRSP or LIRA. However, the institution transferring out funds may levy a transaction or cheque issuance fee and you may also incur other charges when disposing of certain investment types.
Can I make a withdrawal while working at McGill?
In general, funds may not be withdrawn while you are employed at McGill.
When can I retire?
There is no mandatory retirement age in Quebec.
Subject to the policies of the University, you may retire any time after your 55th birthday.
You may retire without having to settle your pension plan holdings. Under current tax law, you must settle your pension holdings and start receiving a retirement income no later than the December 31st of the year in which you turn age 71, even if you continue to work.
Choosing when to retire is an important decision that can have a large impact on the size of the pension you receive. You must also choose what type of pension or other form of retirement income best suits your needs.
What are my options at retirement?
Refer to the "When you retire" section of the Life Events page for the options available to you for your MUPP account when you retire.
When will I receive my statement?
Each year, in January, you will receive a comprehensive pension statement detailing your account information. You can download your annual statements via the McGill University Savings Program website > Manage plan > View documents > Statements.
What services are available to me?
- Visit our Learning Centre to see what other services are available to you.
- Refer to the MUPP - Part B (Defined Contribution) Brochure.
What kind of pension plan is it?
Pension plans come in two basic styles:
- defined contribution plans (DC), and
- defined benefit plans (DB)
In a defined contribution plan, the amount of contribution is known in advance, but the amount of pension isn’t. The amount of pension you receive depends on the size of your “pension accounts” at settlement, your age and market conditions when you convert these savings into a retirement income. Depending on the long-term investment results you achieve, your defined contribution pension could be significantly higher than the pension you earn under a comparable defined benefit plan or significantly lower, for that matter.
In a defined benefit plan, you receive a pension based on a formula (usually tied to service and pay). You do not have a “pension account” because your pension is paid based on the formula. It is your employer’s responsibility to ensure that contributions and investment earnings are sufficient to provide your pension.
If you were hired prior to January 1, 2009 and eligible for the MUPP, it is a hybrid plan (Part A). First, it’s a defined contribution plan. You and the University each contribute a certain amount to the plan every pay. You choose how you wish to invest these contributions from a range of investment options provided through the plan. When the time comes to settle, you use your pension holdings to provide a retirement income.
But to protect against the investment risks inherent in a straight defined contribution plan, the MUPP includes a defined benefit minimum. If the value of your minimum pension using the defined benefit formula is higher than the value of your pension account if you had always invested 100% in the Balanced Account, the University will pay a supplementary amount to make up the difference. If no extra amount is paid by the University, it means that the value of your pension account exceeded the value of your minimum pension.
When and how can I join?
Part A is closed to new hires. Employees hired on or after January 1, 2009 participate in Part B of the McGill University Pension Plan.
If you are rehired If you were a former member of Part A and are rehired, subject to meeting the eligibility criteria, you will be invited to join Part B, the defined contribution segment of the McGill Pension Plan.
Eligibility for a pension plan is based on your primary position, the position where you receive the majority of your eligible earnings. You are only permitted to participate in one pension plan at a time. Contributions are made based on the earnings of the eligible position(s) only and as such, you may not have contributions made on all earnings. If you are eligible for the MUPP, you are not eligible for any other pension plans at McGill.
How much do I contribute?
Age Bracket | *Required Employee Contributions | *Cost-Sharing Contributions | |
|---|---|---|---|
All Members | Tenure Stream Clinical | All Members | |
| Up to age 39 | 5.0% |
Plus 0.5% |
Plus 0.8% |
| Age 40 to 49 | 7.0% | ||
| Age 50 to 65 | 8.0% | ||
*Less 1.8% of earnings up to the Québec Pension Plan earnings limit | |||
How much does McGill University contribute?
Age Bracket | *Required University Contributions | *Cost-Sharing Contributions | |
|---|---|---|---|
All Members | Tenure Stream Clinical | All Members | |
| Up to age 39 | 5.0% |
Plus 0.5% |
Less 0.8% |
| Age 40 to 49 | 7.0% | ||
| Age 50 to 65 | 8.0% | ||
*Less 1.8% of earnings up to the Québec Pension Plan earnings limit | |||
| Defined Benefit | McGill assumes the cost of going-concern plus degree of solvency (top ups). | ||
Can I make Additional Voluntary Contributions?
If you are over age 65 and continue to work at McGill, you can choose to make additional voluntary contributions (AVCs) to the Pension Plan via payroll deduction. You may elect to contribute any amount up to the maximum amount permitted under the Income Tax Act and receive an immediate tax relief at source. It is important to note that the University does not match these contributions. To make, modify or cancel your AVCs, login to Workday and use Change Benefits in the Pay, Benefits & Compensation Hub. The benefit event date used must be a current or future date.
To learn more about AVCs, refer to the Contribution section in our Frequently Asked Questions.
What fees do I pay?
Investment Fees
The fees applied for the various investment options offered under the MUPP can be found in Morningstar, a leading provider of investment news and analysis via the Sun Life secure site > Manage plan > my plan > Plan Overview > Account fees.
In addition, a 2% short-term trading fee will apply if you move money in and out of the same fund within 30 days.
Record Keeping Fees
The following record keeping fees apply for members of Part A (hybrid plan) and are deducted from your account on a monthly basis. They include taxes and are subject to an annual indexation adjustment:
| Effective Date | Annual Amount |
|---|---|
| October 1, 2025 | $212.70 |
File
| $241.31 |
What is the defined benefit minimum pension?
You automatically earn the right to the minimum pension. At the earlier of your termination/retirement date or the month end you reach age 65 (normal retirement date), the value of the minimum pension you have earned using the defined benefit formula is compared to the total value that you would have accumulated in your pension account if you had always invested 100% in the Balanced Account. If your defined benefit minimum pension is worth more, at settlement, you will have the choice to receive this extra amount as a monthly pension (Supplemental Retirement Benefit - SRB) or as a lump-sum transfer value (Supplemental Retirement Benefit Value - SRBV).
How do we calculate the defined benefit pension?
Under the MUPP, the date used as a benchmark for the calculation of the minimum pension is the last day of the month in which you reach the age of 65 (also referred to as your “normal retirement date”).
If you retire or terminate between ages 55 and 65 and elect to receive an SRB pension, your minimum pension is reduced by 0.25% for each month that your retirement falls short of your normal retirement date.
Your minimum pension is also reduced if a payment has been made from your SRBV as a result of marriage breakdown or a phased early retirement lump sum payment. The “Supplemental Retirement Benefit Value” is based on standard transfer values established by the Canadian Institute of Actuaries. If you continue to work at McGill beyond age 65, the supplemental retirement benefit, if any, is actuarially adjusted to your actual retirement date.
What is the formula for the defined benefit minimum
Annual pension = (1.8% * your best earnings * your years of credited service) minus (0.58% * your best earnings up to the average QPP earnings limit * your years of credited service after 1971)
| Term | Definition |
|---|---|
| Best earnings | Means the average of your basic earnings during your 60 consecutive months of highest earnings and adjusted for inflation above 3.75%. |
| Basic earnings | Refers to gross earnings including stipends and sessional payments but excluding overtime and annual or semi-annual payments |
| Average QPP earnings limit | Means the average of the QPP earnings limit in the last 5 years before you retire |
| Credited service | For full-time employees, the period expressed in years and months) of continuous employment at McGill up to your normal retirement date (age 65) and during which you contributed to the MUPP. If you are not full-time, your credited service in a calendar year will be pro-rated to reflect the full-time equivalence |
Example of how a minimum pension is applied
The steps below explain the minimum pension calculation. To learn more about the options available to you, refer to the "Leaving McGill before retirement" and "When you retire" on the Life Events page. We also encourage you to attend the webinar "MUPP - Part A (hybrid)" to learn more.
Step 1 - determining the annual defined benefit amount using the formula
John retires on December 31, 2025 and is age 64 years 0 months with 40 years of service. His best earnings were $83,000, with adjusted inflation, his earnings were $84,000 and the average QPP earnings limit is $66,580. Using the formula, his annual minimum pension is calculated as follows:
(1.8% x $84,000 x 40) – (0.58% x $66,580 x 40) = $45,033
Since John is retiring 12 months before his 65th birthday, his minimum pension is reduced by 0.25% for each month he falls short of age 65:
$45,033 - $1,351 = $43,682 (this is not the final amount that John will receive)
Step 2 - converting the annual defined benefit amount into a present value
Think of this as converting future pension payments into a dollar value in today's dollars after accounting for when payments will start, expected investment earnings (or the discount rate) and John's life expectancy. In John's case, we take all the future hypothetic payments of $43,682 and establish a value of $633,000. This is the amount of assets deemed sufficient to provide a lifetime income equal to the minimum pension.
Step 3 - comparing the present value to the performance of the Balanced Account
Next, the $633,000 is compared to what John would have accumulated in his pension account had he been invested 100% in the Balanced Account, the default fund of the MUPP, which would have been $610,000. Therefore, John is entitled to an extra amount, known as the Supplemental Retirement Benefit Value (SRBV), of $23,000.
Step 4 - choosing how to receive the SRBV
John has the option of receiving the amount as a transfer value of $23,000 or as an annual life only pension of $1,587 (reduced at age 64), $1,636 (at age 65).
Who makes the investment decisions for my and the University's contributions?
When you join the MUPP, you must decide on your investment allocation. See: Investments for more information.
What if I do not choose an investment allocation?
If you do not choose an investment allocation, all contributions will be invested in the Balanced Account, the default fund.
How will contributions affect my RRSP room?
The Canada Revenue Agency (CRA) currently limits the amount you may contribute to an RRSP to 18% of your previous year’s “earned income” to a maximum dollar limit.
As a member of a registered pension plan, this limit is reduced each year by a pension adjustment (PA), which reflects the value of your benefits in the McGill Pension Plan. The PA for your defined contribution pension is simply the total contributions (employee, University and AVCs) made during the year. To find out how much you may contribute to your RRSP; refer to your most recent Notice of Assessment from CRA.
Can I transfer in funds?
All transfers into the plan are considered Additional Voluntary Contributions (AVCs) and are deposited into an AVC account. Funds held in your AVC account may not be withdrawn or transferred while you are employed at McGill. Withdrawals under the Home Buyer's Plan (HBP) and Lifelong Learning Plan (LLP) are not available from the McGill Pension Plan.
If you transfer funds into the MUPP, you will not be able to access them until the earlier of termination of employment, retirement or age 71.
From a registered pension plan (RPP)
If you participated in a registered pension plan (RPP) with a former employer, where permitted by legislation, you may transfer non-locked amounts which will be tracked as non-locked transfers in.
If you transfer locked-in amounts, these will be tracked separately as locked transfers in and administered as per the province of legislation of where the money comes from.
From a registered retirement savings plan (RRSP)
If you currently hold a registered retirement savings plan (RRSP), you may transfer amounts from your RRSP into your McGill Pension Plan account.
These monies will be tracked separately as non-locked transfers in. Alternatively, you can transfer these monies into the McGill University Savings Program - Group Retirement Savings Plan (RSP).
From a locked-in retirement account (LIRA)
If you currently hold funds in a locked-in retirement account (LIRA), you may transfer amounts from your LIRA into your McGill Pension Plan account. These monies will be tracked separately as locked transfers-in.
Alternatively, you can transfer these monies into the McGill University Savings Program - Group Locked-In Retirement Account (LIRA).
Options at retirement and/or termination and fees
Non-locked transfers in: may be received as a cash payment (less withholding taxes), transferred to an RRSP, or used to buy an annuity.
Locked transfers in: are subject to locking-in provisions and in general, may not be withdrawn in cash and must be used to provide a retirement income.
The McGill Pension Plan does not charge a fee to accept transfers-in from an RRSP or LIRA. However, the institution transferring out funds may levy a transaction or cheque issuance fee and you may also incur other charges when disposing of certain investment types
Can I make a withdrawal while working at McGill?
In general, funds may not be withdrawn while you are employed at McGill.
When can I retire?
There is no mandatory retirement age in Quebec.
Subject to the policies of the University, you may retire any time after your 55th birthday.
You may retire without having to settle your pension plan holdings. Under current tax law, you must settle your pension holdings and start receiving a retirement income no later than the December 31st of the year in which you turn age 71, even if you continue to work.
Choosing when to retire is an important decision that can have a large impact on the size of the pension you receive. You must also choose what type of pension or other form of retirement income best suits your needs.
What are my options at retirement?
Refer to the "When you retire" section of the Life Events page for the options available to you for your MUPP account when you retire.
When will I receive my statement?
Each year you receive two pension statements detailing your defined contribution (in January) and defined benefit (in May) information. You can download your annual statements via the McGill University Savings Program website > Manage plan > View documents > Statements.
What services are available to me?
- Visit our Learning Centre to see what other services are available to you.
- Refer to the MUPP - Part A (Hybrid) Brochure.
Other sources of income
Most experts agree that to retire comfortably, you need an income of approximately 60-70% of your earnings before retirement. This income typically comes from three sources: government programs such as the Québec Pension Plan and Old Age Security, employer-sponsored pension plans like the McGill University Pension Plan and personal savings such as Registered Retirement Savings Plans and Tax-Free Savings Accounts.
Québec Pension Plan
The Québec Pension Plan (QPP) is a compulsory plan for workers in Québec over age 18. Since 2019, the QPP has been composed of a base plan and an additional plan where both you and your employer share equally contributions, above the basic exemption. Since 2024, employee and employer QPP contributions are made on earnings between the Year's Maximum Pensionable Earnings (YMPE) and the Year’s Additional Maximum Pensionable Earnings (YAMPE) limits.
The QPP is designed to replace about 25% of the QPP earnings limit and this income replacement ratio will gradually increase to 33.33% by 2065. In 2026, the maximum QPP pension is $18,902 (per year). If you earn less than the QPP earnings limit during your career or are not employed for an extended period, you may receive less than the maximum pension.
You may apply for your pension from the QPP any time between ages 60 and 70. The pension amount varies depending on whether payment begins before or after age 65. If you are under age 65, your QPP pension is reduced by up to 0.6% for each month between the start of payment and your 65th birthday. If you are age 65 or over, your QPP pension will be increased by 0.7% for each month following your 65th birthday, to a maximum of 42% at age 70. The maximum QPP pension in 2026 is $18,092. If you have taken a long break from employment or earned less than the QPP earnings limit, you may receive less than the maximum.
You may contact the Retraite Québec at any time to request a estimate of the QPP pension you have earned. You may also request a written statement of your participation or access on their website.
QPP application forms are available from any office of Retraite Québec , by calling 1-800-463-5185 or via their website. You should submit your applications at least six months before you wish payments to begin.
Old Age Security
Old Age Security (OAS) is paid to everyone age 65 or over who has lived in Canada for 40 years after age 18. OAS replaces another 15% or so of the QPP earnings limit, but begins to be clawed back if your income is above a certain level (see p.17). The current maximum OAS pension is approximately $8,908 per year. If you have lived in Canada for at least 10 years, you may apply for a reduced pension. (For more information on government programs, see p.17).
OAS is paid to everyone age 65 or over who has lived in Canada for 40 years after age 18. OAS replaces another 15% or so of the QPP earnings limit, but begins to be “clawed back” under the tax laws if your income is above a certain level. The maximum OAS pension in January 2026 is $742.31 per month. If you have lived in Canada for at least 10 years but fewer than 40 years, you may qualify for a reduced pension.
OAS application forms can be obtained from any office of Service Canada, Income Security Programs (1-800-277-9914) or on their website. You should submit your applications at least six months before you wish payments to begin.
Employer-Sponsored Pension Plans
At McGill, pensions are considered a key element of your compensation package. For this reason, the University has developed an excellent Pension Plan which in combination with the QPP may, where certain conditions are met, replace as much as 65% of pre-retirement income for a career (35-year) plan member or a significantly lower percentage under adverse conditions.
Personal Savings
Unless you have some other source of wealth, any shortfall between your target replacement income at retirement and your pension from government and employer-sponsored plans must be made up from your personal savings. In Canada, in addition to a Tax-Free Savings Account (TFSA), one of the most efficient ways to save for retire ment is a registered retirement savings plan (RRSP). As a general rule of thumb, for each additional $10,000 of yearly income when you retire, you need $80,000-$120,000 in savings. The exact amount depends on your age and market conditions when you retire. McGill University offers a Group RRSP and Group TFSA to all employees, to learn more, visit the Voluntary Savings Plans website.
