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FAQs

Below is a list of frequently asked questions.  If you have any question and you'd like to see answer please email us at info@mspp.ca

Q.) When is the Pension Paid?

A.) Normal Pension is paid at the age of 65.

Q.) How long does the process take to receive pension?

A.) It takes about two weeks to process an individual's pension provided the Fund Office has all the necessary information. We recommend you apply two months in advance of the effective date of payment.

Q.) Will you pay my pension if I reside outside of Canada?

A.) You do not have to have residence in Canada to receive your Pension Benefits.

Q.) Can I collect my Pension as early as 55?

A.) Yes, you can collect your pension as early as 55 with a reduction of 6% per year for each year younger than 65. Your pension benefit is paid to you every month for your lifetime.

Q.) Does the law protect my benefits?

A.) The Multi Sector Pension Plan is expected to operate indefinitely. However, if for some unlikely reason it is terminated, your pension benefits will continue as provided by provincial or federal legislation.

Q.) If I die after I'm already retired and collecting a benefit, what happens?

A.) If retiree passes away, his or her pension may continue as Spousal payments under the Plan regulations. This is dependent on the spousal status of the participant and payment option selected by the participant upon retirement.

Q.) What is the Level Income Pension?

A.) A Level Income Pension is only available to those who choose Early Retirement and qualify for it. This option takes into account the benefits you may receive under the Old Age Security Act and the Canada Pension Plan. Initially, you will receive a higher monthly payment from the Plan. You will continue to receive this higher amount from the date you retire until you reach age 65, when the Old Age Security Pension and the Canada Pension Plan (CPP) are payable to you if you qualify. Your payment from the Plan after age 65 will then be reduced.  That way, the benefits you will receive under the Old Age Security Act and Canada Pension Plan, plus the reduced payment from the Plan will be approximately equal to the pension you were receiving before age 65.

Q.) Who can apply for Level Income pension?

A.) The Level Income Pension is a pension benefit paid to individuals who are entitled to a vested benefit under the Plan and retire between the ages of 55 and 65 and qualify for it.

Q.) What happens if I die while I am collecting a Level Income benefit?

A.) The Level Income benefit stops on death. The Fund Office will calculate the amount received under the Level Income option to the date of death and compare it to the amount payable under 5 Year Guarantee form of payment. If the amount is under 5 Year Guarantee form of payment exceeds the Level Income amount paid to date of death then the difference is paid as a lump sum payment to your beneficiary.

Q.) Is Level Income Option available to someone with a Spouse?

A.) Level Income option is available to participant with a spouse. A spousal waiver form must be signed by both the member and their spouse and be submitted to the Fund Office in order to elect this form of payment.

Q.) Is Level Income Pension option available to all pensioners?

A: Level Income Pension is the only option that is not available to all pensioners. It is only available to those who choose early retirement and qualify.

Q.) Once I am already receiving my benefit, can I change the form of payment?

A: Once a pension has commenced, you may not change or revoke the option you have chosen.

Q.) How long does the process take to receive my first monthly pension?

A.) We recommend a couple of months in order to confirm all completed documents are in order, and your first pension payment is setup.

Q.) How much will I receive when I retire?

A.) An estimate can be provided to determine what the participant would receive under different the forms of payment. Please request this information from the Fund Office if you are contemplating retirement.

Q) How do I apply for my Pension?

A.) The Fund Office will send all necessary documentation to the participant. The participant must fill out the application and provide all supporting documentation.  Once the application is provided to the Fund Office we will commence processing the participant's application. One must terminate employment for the benefit to commence or have reached age 71.

Q.) Is there a reduction in my monthly pension if I commence it earlier then 65?

A.) Yes, there is. For every month that you are younger than 65 there is a 0.5% reduction, which equals a 6% reduction per annum. The earlier you take your pension the larger the reduction. Age 55 in the earliest you can start receiving your pension.

Q) What happens to my pension contributions if I die?

A) In this case your beneficiary can apply for the benefits.  If you do not have a beneficiary, the benefit will be paid to your estate.

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