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| You are in: The Plan : Publications : Employee Booklet : What Will I Get From The Plan? |
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The MTS Pension Plan is what is known in the industry as a Defined Benefit Plan – so called because the benefit you earn during your working years is defined by a predetermined or set pension formula. In other words, you will receive a guaranteed pension at retirement based on your age and earnings history. No guess work. No investment risk.
As a member of the Plan, you will earn a benefit equal to:
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In no case can the benefit exceed 70% of your Best Average Earnings.
Best Average Earnings refers to the average of your earnings during the five years of employment during which your earnings are highest. This important Plan provision ensures that your pension is based on your highest earnings. The higher your earnings, the larger your pension will be.
Average YMPE means the average of the YMPEs over the five-year period used to determine your Best Average Earnings. Remember, the YMPE is a level set by the federal government each year to determine maximum CPP contributions and benefits.
Credited Service refers to the years, months and days you have participated in the Plan. As the formula illustrates, the more Credited Service you have, the larger your pension will be.
Based on current Revenue Canada regulations, the maximum pension you can receive from the MTS Plan is $1,833 for each year of service. If your pension is limited by this maximum, the excess will be paid to you directly by MTS.
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Copyright 2004. All rights reserved. | | |
