- Last Updated on Thursday, 23 February 2012 19:11
WHAT ABOUT PENSION CREDITS FOR YEARS BEFORE MY EMPLOYER JOINED THIS PLAN?
Plan B provides pensions only for your period of membership in the Plan. It does NOT provide any credits for previous periods of employment – your pension for any prior periods will depend on the arrangements (if any) your employer had in place at that time.
DO I EARN PENSION CREDITS WHILE I AM OFF SICK, ON LAY-OFF OR ON VACATION?
You earn pension credits for each hour contributions to the Pension Plan are made on your behalf. Contributions are paid during your employment as a bargaining unit employee, when you are at work. Depending on the terms of the Collective Agreement, contributions may be required for overtime hours, vacation pay, sick benefits, LTD benefits, or on an approved leave. You do not earn pension credits when you are on lay-off unless your Collective Agreement provides otherwise. Your Credited Service for pension purposes may not be the same as your seniority, particularly if you have been laid off at any time.
WHAT HAPPENS IF I MOVE OR CHANGE MY BANKING ARRANGEMENTS?
It is your responsibility to keep the Plan Administrator informed of any changes to your address or banking arrangements so that you can receive your payments in a timely manner.
WHEN CAN I EXPECT MY FIRST PENSION PAYMENT?
Your first pension payment is effective from the first day of the month following your retirement date. However, it may take longer to receive your first payment, which will be retroactive to your retirement date. In order for the Pension Plan to pay you from the first day of the month following your retirement date, you must apply for your pension at least two months prior to that date.
IS MY PENSION INCREASED AFTER I RETIRE?
It may be increased from time to time, but only as determined by the Trustees.
WHAT HAPPENS TO MY PENSION IF I DIE BEFORE I RETIRE?
Death benefits will be paid to your spouse or beneficiary (if you have no spouse) if you die before you retire. Your spouse or beneficiary has the following options for payment of your Pension Plan benefits:
- receive an immediate or deferred pension (applies only to your spouse);
- transfer the cash value tax-free to an RRSP (applies only to your spouse);
- take the cash value as a taxable cash payment
WHAT HAPPENS IF I QUIT OR AM TERMINATED?
If you terminate before you have completed two years of service with a participating employer, you will not receive any benefit or refund of contributions from the Plan unless your Collective Agreement required employee contributions. If it did and no contributions have been received on your behalf for nine months, your employee contributions will be refunded with interest.
If you terminate after you have completed two years of service with a participating employer, no contributions have been received on your behalf for nine months, and you are less than age 55, you may:
- transfer the lump sum value of your pension to a "locked in" RRSP;
- transfer the lump sum value of the pension to your new employer's pension plan if that plan permits;
- purchase a lifetime annuity; or
- alternatively, you may leave your pension credits in the plan and choose to receive your earned pension at age 65, or an actuarially reduced pension anytime after age 55.
You must apply to transfer your benefits out of the Plan. If you do not, your benefits will remain in the Plan until you apply for a pension.
The lump-sum value of your pension will be at least equal to the contributions made to the Plan on your behalf.
WHAT HAPPENS IF I LEAVE THE BARGAINING UNIT?
If you continue to be employed by your employer, but are transferred to a job that is not part of the bargaining unit, the pension benefits you have earned under the Plan are frozen. After six months, you have the portability options of terminated employees described above.