Welcome to the MEPP Employer Administration Guide History and by wxv15919


									                                                             Employer Administration Guide

 1.	 Introduction	and	General	Information

          1.a               Welcome to the MEPP Employer Administration Guide
          1.b               History and Nature of the Plan
          1.c               Plan Administration
          1.d               Employer Responsibilities
          1.e               Information Sources

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Employer Administration Guide

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1.a	 				Welcome	to	the	MEPP	Employer		                                    	       	
	    				Administration	Guide

                 The Municipal Employees’ Pension Plan (MEPP) is a multi-employer pension
                 plan. There are more than 700 participating employers and more than
                 0,000 plan members. As a participating employer, you play an important
                 role in the daily administration of the Plan on behalf of your employees. We
                 rely on you to enrol new members, to collect and remit contributions, and to
                 be a resource for members.

                 This employer administration guide will:

                 •     inform participating employers about the requirements of MEPP;
                 •     serve as a guide to policies and procedures of MEPP; and
                 •     provide step-by-step instructions for submitting contributions online.

                 MEPP produced this administration guide for employers to assist in
                 performing the responsibilities necessary for the administration of the Plan.

                 This employer guide is divided into sections that provide an overview on:

                 •        Introduction and General Information
                 •        Enrolling New Members
                 •        Member Maintenance – The Existing Member
                 •        Termination, Retirement & Death – The Outgoing Member
                 •        Time Away From Work
                 •        Presentations
                 •        Plan Provisions
                 •        Contributions to the Plan
                 •        Plan Provisions
                 •        Glossary

                 When changes occur MEPP will distribute an updated section to ensure
                 employers have an up-to-date guide. You may receive updates on a CD or
                 in a printed format. Please provide us with any feedback that may improve
                 the guide.

                 This guide provides guidance and general information. Should anything in
                 the guide conflict with governing legislation, the legislation shall apply. We
                 reserve the right to change these policies and procedures anytime. We will
                 notify you of changes. These procedures are intended for use under normal
                 operating circumstances. We reserve the right to take alternative steps if we
                 deem such steps necessary.

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Employer Administration Guide

1.b	 					 History	and	Nature	of	the	Plan

History           The Municipal Employees’ Pension Act established the Municipal
                  Employees’ Pension Plan on July 1, 197. The Plan was created to provide
                  retirement benefits to the members of school divisions, urban and rural
                  municipalities, regional colleges, regional public libraries and other local
                  authorities. The Plan also provides benefits in the event of death, disability
                  or termination of employment.

Nature	of	        MEPP is a defined benefit pension plan. Defined benefit pension plans
the	Plan          provide pensions that are calculated using a formula that takes into
                  account a member’s service and salary history. Eligible members receive a
                  lifetime pension from the Plan, regardless of how long they live.

                  Benefits under the Plan are funded by employer and employee
                  contributions. Employers and employees contribute to the Plan on an
                  equal basis.

Governing	        The Municipal Employees’ Pension Act governs the Plan. The Plan is also
Legislation       registered under both The Pension Benefits Act, 199 and the Income Tax
                  Act (Canada).

                  The Pension Benefits Act, 199 regulates pension plans in Saskatchewan.
                  The Act provides minimum standards for benefits and insures plans are
                  administered according to sound business practices.

                  The Income Tax Act (Canada) regulates all registered retirement savings
                  schemes. The Income Tax Act (Canada) allows for tax deductions on
                  contributions to registered plans. The Act also sets maximum levels for
                  contributions, pensions at retirement and other benefits. The Plan’s
                  registration number is 0551.

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1.c	 	           Plan	Administration

The	                 The Municipal Employees’ Pension Commission is responsible for the
Commission           administration of the Municipal Employees’ Pension Fund. Investment
                     managers invest the Plan’s funds in accordance with the investment policy
                     set by the Commission.

                     The Commission selects the Chair and Vice-Chair. The full term of office
                     for Commission members is four years. A member may be appointed for
                     two full terms.

                     The Commission has 10 members, including:

                              Appointees of each of:

                              •        The Saskatchewan Urban Municipalities Association;
                              •        The Saskatchewan School Board Trustees’ Association
                                        (two appointees);
                              •        The Saskatchewan Association of Rural Municipalities;
                              •        The Rural Municipal Administrators’ Association of
                              •        The Saskatchewan Association of School Business Officials;
                              •        The Urban Municipal Administrators’ Association of
                              •        Regional Colleges and Libraries (alternate);
                              •        Designated Police Officers and Firefighters; and
                              •        Trade unions.

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Employer Administration Guide

1.c	 	         Plan	Administration

                  The Commission is responsible for the administration of The Municipal
                  Employees’ Pension Act. The Commission carries out this responsibility by:

                  •      interpreting the provisions of the Act;
                  •      establishing an investment policy and hiring investment managers;
                  •      making recommendations for changes to the Plan to the provincial
                  •      hearing appeals; and
                  •      hiring such staff and consultants as is necessary to run the Plan.

                  The Public Employees Benefits Agency
                  The Commission contracts the day-to-day administration of the Plan to
                  the Public Employees Benefits Agency (PEBA). PEBA as an agency under
                  the Ministry of Finance administers a wide range of pension and benefits

                  PEBA is responsible for:

                  •       processing applications for benefits in a timely and accurate
                  •       providing required services and information to members and
                  •       providing policy advice and administrative services to the
                  •       maintaining a cooperative partnership with employers;
                  •       administering the Plan within a low-cost structure; and
                  •       measuring and reporting performance to the Commission,
                          members and employers.

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1.d	 	           Employer	Responsibilities

                     Participating employers are responsible to assist in the administration
                     of MEPP. In accordance with legislative requirements, participating
                     employers have a responsibility to:

                     •        enrol their employees in the Plan;
                     •        inform their employees about the Plan and Plan changes;
                     •        inform MEPP of changes in their employee’s employment status;
                     •        collect and remit contributions within the required time-frame.

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1.e	 	         Information	Sources

Member	Booklet
MEPP sends every new member a
Member Booklet. The Booklet provides
an overview of the main provisions of
the Municipal Employees’ Pension Plan.
The Booklet is regularly updated and is
posted on the MEPP website.

The MEPP website at
www.peba.gov.sk.ca has current MEPP
communication materials.

MEPP	In-Depth
Provides information on specific Plan
provisions. MEPP In-Depth publications
are available on the website.

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1.e	 	           Information	Sources

MEPP	Matters	Newsletter
Provides information about the pension
Plan, the pension industry and pension
topics. It is published twice each year.
Current and previous issues of MEPP
Matters are available on the website.

                                                       Pension                                                         annual MeMBer’s stateMent
                                           DefineD Benefit Plan                                                                  For the year ended December 31, 2007

MEPP	Member	Statements
                                                                                                                                      Registered Pension Plan 0355321

The Annual MEPP Member’s Statements        This is your 2007 Municipal Employees’ Pension Plan Annual Member’s Statement. Please review all the information
                                           carefully and report any corrections required to MEPP at 1-877-506-6377 (toll free) or 787-2684 if you live in the
                                           Regina area. For an explanation of the information contained in this statement, please refer to the enclosed

updates members on their pensions.
                                           brochure, Guide to Your 2007 Annual Member’s Statement.

                                             Personal Information

                                           1. Date of Employment:                                            Birth Date:

                                           2: Date of Enrolment:                                             Spouse’s Birth Date:

                                           See reverse of statement for a list of your Beneficiaries.

                                             Monthly Pension Earned to Date

                                           3. Eligibility Service:                                    4. Normal Retirement Date:
                                           5. Pensionable Service
                                              Before 1990:                   1990-2000:                       2001-2005:                          After 2005:

                                           6. Highest Average Salary:                                 7. Pension Earned to December 31, 2007:

                                           Item 7 is the monthly lifetime pension you would receive on your normal retirement date if you terminated employment
                                           December 31, 2007. It is based on your service and Highest Average Salary as at that date and does not include a Bridge
                                           Benefit. See reverse for any adjustment in your pension amount due to breakdown of your spousal relationship.

                                             Monthly Pension Projections
                                                                                      Before Age 65                      After Age 65                          Projected
                                                                                 (includes Bridge Benefit)         (Lifetime Pension only)                    Date Payable

                                           8. Projected Unreduced Pension:

                                           9. Projected Reduced Pension:

                                           10. Annual Service assumed for projections:                  Pensionable:                           Eligibility:

                                           The projected pensions and dates on which they are payable are based on your 2007 Highest Average Salary in item 6
                                           and the Pensionable and Eligibility Service projections in item 10. The projections are only estimates and assume you
                                           will continue working at this rate of salary and service to the date of retirement.

MEPP	Highlights	and	Annual	Report

The MEPP Annual Report is posted to the
website each year. MEPP Highlights was                                                     Highlights
developed to share highlights from the
                                                                                                        Municipal Employees’
MEPP Annual Report.                                                                                     Pension Plan

                                                                                                                                                          This publication and the MEPP Annual
                                                                                                                                                          Report are available in electronic format at

                                                                                          At a glance
                                                                                          The Plan holds more
                                                                                          than $1.4 billion
                                                                                                                  Indexing of two per
                                                                                                                  cent was applied
                                                                                                                                                              In 2007
                                                                                                                  effective January                           • The Municipal Employees’ Pension
                                                                                          in total assets. It
                                                                                                                                                                Commission approved the
                                                                                          remains fully funded    2007 to pensions
                                                                                                                                                                2006 actuarial valuation, which
                                                                                          with a small surplus.   earned on service                             reported that the Plan was fully
                                                                                                                  prior to 1999.                                funded.
                                                                                          In 2007, membership                                                 • MEPP established a stakeholder
                                                                                          consisted of over                                                     consultation process, and in
                                                                                          16,000 members and                                                    2008 will solicit feedback on
                                                                                          4,000 pensioners,                MEPP                                 maintaining a healthy fully-
                                                                                          an increase in active                                                 funded plan.
                                                                                          members of 342.
                                                                                                                           remains                            • MEPP now has a Customer Focus
                                                                                                                           fully                                Coordinator to aid plan members
                                                                                                                                                                and employers.
                                                                                          MEPP made
                                                                                          monthly pension
                                                                                                                           funded                             • MEPP now has a Retirement
                                                                                                                                                                Information Consultant to
                                                                                          payments to 4,013                with a                               assist members with retirement
                                                                                          pensioners, paying
                                                                                          approximately $38.6
                                                                                                                           small                                information.
                                                                                                                                                              • MEPP began planning to provide
                                                                                          million to pensioners            surplus.                             members with an online pension
                                                                                          in 2007.                                                              calculator.


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