A Major Asset About Your MTS Pension Plan How Does My Pension Plan Work? How Do I Become A Member Of The Plan? Who Contributes What? What Will I Get From The Plan? Can You Give Me An Example? When Can I Retire? How Is My Pension Paid? Does My Pension Offer Any Inflation Protection? What Happens If I Leave MTS Before I Retire? What If I Become Disabled? Are My Survivors Protected? What If I Need More Information?

You are in: The Plan : Publications : Employee Booklet : Who Contributes What?   Who Contributes What? MTS believes that planning for your future is a shared responsibility. As such, the Company will share the cost of your MTS Pension Plan. Employee contributions How much you contribute to the Plan each pay period will depend on what you earn. Employees contribute a fixed percentage of their salary each pay period to the Plan. As a regular Plan member, you are required to make contributions equal to: 5.1% of Earnings up to YMPE and 7.0% of Earnings above the YMPE Earnings means the wages you receive from a Participating Employer. It does not include overtime payments, extra allowances, bonuses or gratuities. To put things in perspective, you will contribute $5.10 for every $100 you earn up to the YMPE each pay period, and $7.00 for every $100 you earn above the YMPE. Your personal contribution will be calculated each pay period and deducted directly from your paycheque. The Plan’s administrator keeps track of your contributions, plus interest. The rate of interest credited to your contributions is based on an external index set by the federal government. Tax tip Your contributions to the Plan are fully tax-deductible up to Revenue Canada limits. In other words, they reduce the amount of income tax you pay each year. Let’s assume you contribute $2,000 to the Plan next year. Let’s also assume that you are in a 28% tax bracket. Based on these assumptions, your Plan contributions will actually reduce the total amount of income tax withheld from your pay for the year by $560 (28% x $2,000). The Company Commitment The Company must, by law, contribute whatever remaining amounts are required to fund the pension you earn under the Plan. Before you receive any benefits from the Plan, a test is done to ensure that at least 50% of the value of the benefit you receive is provided through these Company contributions. Any contributions you make above this 50% limit are known as Excess contributions. These excess contributions will be used to increase the benefit you (or your beneficiary) receive. Copyright 2004. All rights reserved.