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4.
How are normal retirement benefits determined?
Retirement benefits are calculated in accordance with a
formula, which can and has changed over time, based on the
recommendations of the actuary and their assessment of the
plan's affordability to pay benefits. The formula for
calculating your accrued pension in the plan is as follows:
1. A monthly pension of $16.80 per month for each year of
Credited Past Service.
plus
2. A monthly pension of $28.50 per month for each 1000 pensionable hours
credited for contributions made to the Plan in the period
August 1, 1968 to December 31, 1988.
plus
3. A monthly pension of $45.00 per month for each 1000 hours worked from
January 1, 1989 to December 31, 1991.
plus
4. A monthly pension of $60.00 per month for each 1000 hours worked after
January 1, 1992 and up to December 31,1995,
plus
5. A monthly pension of 1.71% of the contributions received in respect of the
hours worked by the Employee after January 1, 1996 and up to
December 31, 2004
plus
6. A monthly pension of $75.00 per month per 1000 hours worked
at the standard contribution rate on or after January 1, 2005.
In addition, the Trustees have approved a number of ad hoc
increases.
An
example can be found under Question #4 of the Pension
Plan Booklet.
5.
When am I eligible for an unreduced retirement benefit?
This summary refers only to the rules that apply on
retirement up to and including December 31, 2007. The trustees
will review the financial position of the Plan from time to
time to determine if the rules that apply on retirement up to
and including December 31, 2007 may be applied to retirements
after that date.
If you are an active member at your time of retirement, and
retire on or before December 31, 2007, you are eligible to
retire unreduced at age 60.
If you are a terminated member at your time of retirement, and
retire on or before December 31, 2007, and became terminated prior
to May 28, 2003 then you are eligible to retire unreduced
at age 60.
If you are a terminated member at your time of retirement, and
retire on or before December 31, 2007, and became terminated after
May 28, 2003 then you are eligible to retire unreduced at
age 65.
6. Can I start
my pension prior to age 60?
Yes, your pension may start as early as age 55, provided
you have 2 or more years of Continuous Plan Membership. If you
retire early, your pension will be reduced depending upon
which of the following criteria applies to you.
If you were an active member at the time of your retirement,
and retire on or before December 31, 2007, you are eligible to
retire with a reduced pension starting at age 55. Your pension
will be reduced by ½% for each month you retire prior to your
60th birthday. For example, if your retired at age 57, your
pension would be reduced by 18%.
If you are a terminated member at your time of retirement and
became terminated prior to May 28, 2003, and retire on
or before December 31, 2007, then you are eligible to retire
with a reduced pension starting at age 55. Your pension will
be reduced by ½% for each month you retire prior to your 60th
birthday.
If you are a terminated member at your time of retirement, and
retire on or before December 31, 2007, and became terminated after
May 28, 2003 then you are eligible to retire with a
reduced pension starting at age 55. Your pension will be
actuarially reduced from age 65.
7. What are the disability pension benefits?
If you become totally and permanently disabled you may be
eligible to retire immediately and receive 60% of your accrued
pension
To be classified as “totally and permanently disabled” you
must provide medical evidence of your disability to the
Trustees, and you must have qualified for and be eligible for
CPP disability benefits. You must not have reached normal
retirement age, and you must have two years of Participating
Service in the Plan, in the two Plan Years immediately prior
to the year of your disability. You must have been “totally
and permanently disabled” as defined above, for six months.
8.
For how long are retirement benefits paid, and what
retirement benefit options do I have available to me at
retirement?
Your pension is payable for your entire lifetime. If you
do not have a spouse, you will be given options at retirement
of pension forms that range from one that ceases on your death
to ones that have a guarantee period of 5, 10 or 15 years. If
you choose a pension with a guarantee period and die before
the guarantee period expires, payments will continue to your
designated beneficiary for the rest of that guarantee
period.
If you have a Spouse, then the monthly pension is payable for
your lifetime. In addition to the options listed above, you
will be given “joint life and last survivor” options that
have payments continue to your Spouse, should you predecease
her. You may choose to have your pension continue to your
Spouse at 50%, 60% 75% or 100% of the lifetime pension you
received at retirement, following your selection of your
pension option. The amount of pension with each option is
determined by your age and the age of your spouse at the time
of your retirement. Pension legislation dictates that you must
select an option that provides a pension of at least 60%
continuing to your Spouse upon your death. If you choose an
option that provides less than 60% of your pension to your
Spouse, your Spouse must seek independent legal advice to
inform her of her rights, and she must sign a spousal waiver
form waiving her rights to your pension.
Examples can be found under Question #8 of the Pension
Plan Booklet.
9.
Can I integrate my pension with the pensions I receive from
the Canada Pension Plan and Old Age Security?
On retirement, before age
65 you could elect to bridge your pension with your Canada Pension Plan (CPP) and/or your
Old Age Security (OAS) benefits which start at age 65. The Plan would pay more pension up
to age 65 and then your pension from the Plan would reduce
at age 65 when your Government benefits began, so that your
income from all sources
is more or less level throughout your retirement years. The
examples provided are for
illustrative purposes only. The actual amount payable depends
on your age at retirement as
well as CPP and OAS rates in effect at the time..An
example of integration with the Canada Pension Plan and Old
Age Security is available under Question #9 of the Pension Plan
Booklet.
10.
When do my retirement benefits
start?
Once your application has been received and your hours of
work in the relevant period(s) prior to your retirement have
been confirmed – then your retirement benefits will start on
the first day of the month following the date on which you
become eligible for the benefit. If you do not make
application for benefits until after you become eligible for
retirement benefits, the payments will commence on the first
day of the month following the date your application is
received. If you are retiring on a disability pension, the
benefit will commence two months after the date you became
entitled to CPP disability benefits provided you meet the
eligibility requirements.
11.
When should a retirement application be filed?
In order that time is available to review the optional
forms of pension and complete the necessary forms, you must
contact the Administrator’s office at least three months
in advance of your retirement date to ensure that you receive
your pension on your chosen date of retirement. Once you have
received your forms, applications for retirement should be
filed on a form available from the Administrator’s office at
least one month in advance of the first of the month on which
retirement benefits are expected to begin. For example, if you
will be eligible to retire on December 1st, you should request
your forms no later than September 1st and have your completed
forms returned to the Administrator's office before November
1st.
12.
Do I have to retire on pension on reaching normal
retirement age?
No. The age at which you retire is entirely your decision.
However, your pension must commence prior to the end of
the year in which you turn age 69.
13.
Who is my "Spouse" for the purposes of
the Plan?
“Spouse” shall mean, in relation to another person:
- a person who, at the relevant time, was married to that other
person, and who, if living separate and apart from that other
person at the relevant time, did not live separate and apart
from that other person for longer than the 2 year period
immediately preceding the relevant time, or
- if paragraph
(a) does not apply, a person who was living and cohabiting
with that other person in a marriage-like relationship,
including a marriage-like relationship between persons of the
same gender, and who had been living and cohabiting in that
relationship for the period of at least 2 years immediately
preceding the relevant time.
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