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Superannuation vesting rules change

The Report: July / August 1998 vol.19 num.1

Effective January 1, 1998, Municipal Pension Plan members will bevested for all pensionable service ("fully vested") with two years ofcontributory service or five years of continuous employment, whichever comes first. Theywill be locked-in for post-1992 service only.

 

This means, if a member is employed on or after January 1, 1998, themember is vested upon reaching two years of contributory service or five years ofcontinuous employment, and post-1992 contributions will be locked-in, so that no refund ofcontributions option will apply.

 

Plan members who have less than five years of contributory service asof January 1, 1998, but have at least two years of contributory service or five years ofcontinuous employment, will be vested. However, members who terminated employment beforethis date will not be affected by the change. Their pensions are vested according to therules that were in effect at the time they terminated employment.

 

For assistance with understanding the application of these new vestingrules, contact your Benefit Specialist or Client Services Administrator:

 

Municipal Pension Plan
Superannuation Commission
PO Box 9464 Stn Prov Govt
Victoria BC V8W 9V8
Victoria tel (250)953-3000
Vancouver tel (604)660-5366
BC toll-free (800)668-6335
Fax (250)356-9592

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