Working Beyond Age 71
Pension Plan: Under the Canadian Income Tax Act, Employee and Employer Contributions to a Registered Pension Plan must stop and a Member must start receiving their pension by the end of the year that they turn age 71. Altough they can continue to work beyond age 71, contributions to the Pension Plan cease on the last day of the last pay period of the year the Member turns age 71. Please advise the MEBP office that you have stopped deducting contributions. The Employer is to complete and send a Separation Notice (Form #10) for Retirement to the MEBP Administration Office. The MEBP Administration office will then provide the Member with their pension payment options.
Example:
71st Birthday - June 5, 2022
Last 2022 Pay Period End Date - December 25, 2022
Last Day Pension Contributions are to be deducted - December 25, 2022
Retirement Pension Start Date - December 25, 2022
Disability Income Plan (DIP): Contributions to DIP cease at age 64 years and 8 months.
Group Insurance Plan(s) Basic life Insurance: Basic Life Insurance Employee and Employer Contributions cease on the same date Pension Plan contributions cease. The Member’s Basic Life Insurance will convert to a retired Member’s coverage. This will be communicated to the Member in the Retirement Package that will be sent the Employee by the MEBP Administration Office.
Optional Life Insurance: Optional Life Insurance Contributions cease at age 65.
Family Life Insurance: Family Life Insurance Contributions cease at age 65.
Voluntary Accidental Death & Dismemberment Insurance: Voluntary Accidental Death & Dismemberment insurance (Voluntary AD& D) remains in place until a member terminates or retires from the Pension Plan, whichever occurs first. Therefore, contributions to Voluntary AD & D cease on the same date Pension Plan contributions cease.