Plan summary

Medicus is open to physicians licensed to practise medicine in Canada, who are employed in an eligible jurisdiction, and are:

• Incorporated physicians; or
• Physicians employed by certain other entities (such as other incorporated physicians or clinics).

It’s the participating employer’s responsibility to make all contributions to the pension plan. In other words, no member contributions are permitted.

• If you join through your professional corporation, your corporation is the participating employer that will contribute to the plan for you and any other eligible employees you may have.
• If you are a physician joining through another employer, such as a clinic or another eligible organization that is not your own professional corporation, that organization is the participating employer that will make contributions for you.
• Participating employers make contributions equal to 18% of the qualifying income paid to its enrolled employees (members). For 2024, this cap is $180,500, which means the maximum contribution a participating employer can make, per eligible employee, in 2024 is $32,490.

Each member earns a benefit of 2% of capped pensionable earnings for each year in the plan.

• In 2024, the annual maximum benefit accrual is $3,610.
• If you earned the annual maximum benefit amount for 25 years of service in the plan, it would equal an annual pension of over $131,000 paid for the rest of your life on retirement.¹

¹ Estimate based on the assumption that the physician will draw maximum qualifying income in respect of each year of participation for 25 years, and the maximum increases each year by 3%.

Vesting is immediate when you become a plan member. In other words, if you leave Medicus, you are entitled to benefits payable in accordance with the terms of the plan.

Normal retirement (age 65)
You are eligible to receive the pension you have earned based on your plan service to your actual retirement date.

Early retirement (from age 55 up to age 65)
If you choose to retire early, you’ll receive a lower pension benefit amount to reflect the longer payout period. The reduced amount is based on actuarial calculations.

Postponed retirement (after 65 up to age 71)
You may continue to work and earn pension benefits beyond your normal retirement date. You must begin receiving your pension by December 1 of the calendar year you turn age 71.

Suspension of active service. If you take a break from practice during your career and/or are not working within Canada for a period of time, your employer can apply to the Administrative Centre for consent to suspend your plan participation. Note that the gap in service will be reflected in your plan benefits earned.

If you have joined Medicus through your professional corporation and are on an approved leave of absence, you can continue to earn benefits based on your actual earnings from your employer, but only if your employer continues to make contributions to the plan. This is an income tax law requirement.

If you join Medicus through another employer, then you may continue to earn benefits in the plan while on an approved leave of absence – as long as your employer continues to make contributions.

If your active membership in the plan ends before age 55, you are entitled to pension benefits and may choose to:

• receive a deferred pension starting on the first day of any month within 10 years of normal retirement; or
• have a lump sum commuted value (CV) transferred to a permitted retirement savings arrangement.

If you die before you retire:
Your spouse or beneficiary(ies) will be entitled to receive a benefit based on the benefits you had earned in the plan to the date of your death.

If you die after you retire:
The normal form of pension is a 10-year payment guarantee, then the benefit payable to your spouse or beneficiary(ies), if any, will depend on the form of pension that you elect when you retire.

The annual lifetime pension payable will not exceed the maximum amount allowed by the Income Tax Act (Canada) for registered pension plans.

As a multi-employer pension plan, the financial health of Medicus must be evaluated at least once every three years by the plan’s actuary. The actuary compares the plan assets to the liabilities (i.e., the present value of future benefit payments).

In the event of a surplus (i.e., plan assets exceed plan liabilities), the surplus may be used to increase benefits, such as providing inflation protection.

In the event of a deficit (i.e., plan liabilities exceed plan assets), benefits may be reduced to ensure the long-term sustainability of the plan.

NOTE: Any increases or reductions in benefits must comply with applicable pension legislation.