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Pension Plan Frequently Asked Questions |
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The following are the most commonly asked questions by members regarding the Pension Plan.
If you still have questions after reading this information, please consult the
Pension
Plan Booklet or contact
the Plan Administrator |
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What is the objective of the Plan?
The Plan is designed to provide a monthly life income
for Members who retire under the Plan after
completing certain age and service requirements. Additionally,
if a Member qualifies, a monthly
income is payable if he becomes permanently and
totally disabled before retirement.
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Who is eligible for membership in the Plan?
Each person who is working under the terms of the
Collective Agreement between an Employer and
Heat and Frost Local Union 118 shall automatically participate
in the Plan. An enrollment card must
be completed by each employee and submitted to
the Administrator.
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What contributions are made to the Plan?
Each participating Employer will
contribute based on an hourly
rate at the amount stipulated in the Collective
Agreement.
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What is vesting?
Vesting means that you have a right to receive a pension
benefit on retirement. Effective January 1, 1997,
your Plan requires 2 years with at least 175 hours
in each of these years before you become fully
vested in the Plan accumulated to date.
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When may I begin to
receive a pension?
The following are possible dates when you can receive pension
benefits.
NORMAL RETIREMENT
The normal pension
commencement date is the first day of the month
on or after your 60th birthday.
EARLY RETIREMENT
If you have at least 10
years of Continuous Union Membership, and are age
50 or older, you may elect to receive pension
benefits as of the first day of any month.
DELAYED RETIREMENT AFTER
AGE 60
If you continue to work
beyond your normal retirement date you may
receive a pension on the first day of any month
following your normal retirement date. You
must, however, retire no later than the first day of
the month following your 69th birthday.
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Are benefits taxable?
All Plan benefits are included in your income for income
tax purposes when they are paid (except for
lump sums transferred directly to another registered pension
plan or RRSP).
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Are my Benefits
portable?
If you terminate your membership in the Plan, if you
are fully vested (i.e.., have more than 2 years of
membership in the Plan) and under age 50, you can
request that the Trustees transfer the value of your
vested pension benefit to your locked-in RRSP
or Life Income Fund (LIF), or to purchase an annuity.
A “locked-in” RRSP or
LIF is a special plan that does not allow you to receive
the money in a lump sum payment. It must
be used to provide you with pension income upon retirement. Under
BC pension legislation, transfer amounts
that qualify as a small pension do not have
to be “locked-in”. The value of your pension benefit
is not the same as the total contributions made
on your behalf.
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What happens to my benefits if my marriage breaks down?
In the event of marriage breakdown, the B.C. Family
Relations Act provides for more flexibility as the Member’s
pension becomes part of the family assets to be shared between
the parties.
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