The MTS Pension Plan (the Plan) is a contributory defined benefit plan providing benefits to certain employees and retirees of Manitoba Telecom Services Inc. and its participating subsidiary, MTS Inc. (collectively the Company).
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. The Company contributes the amounts necessary to ensure that the Plan can meet its obligations.
- Members’ eligibility to contribute to an RRSP is reduced each year by the value of the pension they earn from the MTS Pension 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 as early as age 45 if their age plus years of continuous service is at least 70, or as early as age 50 if they have at least 10 years of continuous service.
- 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 the Company before they are eligible to retire are entitled to a deferred pension (which is a pension that is payable when they are eligible to retire). They may also choose to transfer the value of the pension to a locked-in RRSP.
- Effective January 1, 2010, membership in the Plan is limited to individuals who became employees prior to that date.