MTS Pension Plan - Manitoba Telecom Services Inc. and Participating Subsidiaries Employee Pension Plan

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Highlights

The MTS Pension Plan is a contributory defined benefit plan providing benefits to the employees of Manitoba Telecom Services Inc., MTS Communications Inc., MTS Advanced Inc. and Manitoba Telecom Services International Inc. Here are some highlights of the Plan:

Eligible employees contribute to the Plan by payroll deduction each pay period. These contributions are fully tax-deductible. MTS contributes the amounts necessary to ensure that the Plan can meet its obligations.

An employee's RRSP room is reduced each year by the value of the pension earned in Plan.

At retirement, members are eligible for a pension based on a formula using their average earnings during the five years of employment when their earnings were the highest and their years of credited service as a member of the Plan.

Members may retire with an unreduced pension at any time after age 55 if their age plus years of continuous service total at least 80. Members may also retire with an unreduced pension at age 60 if they have at least 10 years of continuous service. Members may retire with a reduced pension at any time after age 45 if their age plus years of continuous service is at least 70.

There is a guaranteed cost-of-living adjustment (COLA) in the Plan equal to two-thirds of the increase in the Canadian Consumer Price Index (CPI) to a maximum CPI increase of 4%. Additional cost-of-living adjustments may be granted if there is sufficient funding available from the COLA account.

Members who leave MTS before they are eligible to retire but after at least two years of continuous service with the Company are entitled to a deferred pension (a pension payable when they are eligible to retire). They may also choose to transfer the value of the pension to a locked-in RRSP.