Prior to April 1, 2024, a former Member who again became a Member of the Pension Plan may apply to the Municipal Employees Benefits Program to reinstate prior pensionable service, if:
- re-entry is within three years of termination of employment, and
- application is made within two years after re-entry.
When the former Member is re-entering the Pension Plan, the MEBP Administration Office will determine if the Member is eligible to apply for reinstatement. The MEBP Administration Office will inform the Member of this option and supply an APPLICATION FOR REINSTATEMENT (Form #40). The form must be acknowledged by the Employer and then forwarded to the MEBP Administration Office for approval. If you are aware of a Member wanting to reinstate prior eligible service, you can request the APPLICATION from the MEBP Administration Office on their behalf.
After the application is approved by MEBP, any payments received on termination of active membership from Plan are to be repaid based on the following criteria:
(A) A commuted value that was removed from the Plan must be repaid based on the full actuarial value of the service being reinstated. The actuarial value will be calculated based on the member's current salary as at the date of the reinstatement application is received and will be held for 90 days,
(B) If the former Member originally elected a deferred pension benefit from the Plan and received any excess contributions from the Plan as a lump sum payment, the excess contributions previously refunded are to be paid back in full with applicable interest from the date of re-employment to the date of payment,
(C) Where a deferred pension was granted to a former employee and no refund of excess contributions was received, the Member may elect to cancel the deferred pension and reinstate the former pensionable service.
When the Member’s completed Application for Reinstatement (Form #40) is received, the MEBP Administration Office will provide the Member with the amount of any repayment owing, if applicable, and payment options available. If prior service is not reinstated, the employee will be treated as a new member.
On and after April 1, 2024, member's that have a locked in deferred pension benefit remaining in the Plan are eligible for reinstatement of prior service. This reinstatement will occur automatically on re-enrollment. The deferred benefit will be cancelled and the Credited and Qualifying Service for the previously deferred period will be added to the re-employment service. However, if the member received a refund of any excess contributions (50% rule), those contributions must be repaid (with applicable interest) in order to receive the full value of the prior Credited Service. If any previously refunded excess contributions, with interest, are not repaid within 180 days, then the reinstatement of Credit Service will be prorated to account for the previous refund of funds. Note: Former members that withdrew all their funds from the Plan, or have a non-locked in benefit remaining in the Plan due to failure to elect a payment option, are not eligble for reinstatement of service and will be treated as a new member.