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Retirement |
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Retirement
- When may I
begin to receive a Pension?
- What Pension does
the Plan provide?
Forms of Pension
- What is
the Normal Form of Pension?
- What is the
Mandatory Form of Pension?
- Who
is my Spouse?
- What is the Optional Form of Pension?
General Information
- Apply in
advance for your Pension
- What happens if I return to
employment after my pension starts?
Other Sources of Retirement Income
- What
other sources of retirement income are available to me?
Illustrations
- Are any illustrations
available to me regarding retirement pension benefits?
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Retirement
1. When may I begin to
receive a pension?
The following are four
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.
DISABILITY RETIREMENT
You may be eligible to
receive a disability pension if you are deemed
totally and permanently disabled under the Plan.
You will be considered
totally and permanently disabled if, based on
sufficient medical evidence, you are unable to engage
in any gainful occupation or employment. In no
event will a disability be considered to be
permanent until it has continued for a period of at least
4 months. Disability pensions can commence on
the first of any month prior to your 60th
birthday.
You must:
- have worked in the
Plan’s jurisdiction in the
three years prior to
your disability
have at least 10
years of Continuous Union Membership
not be eligible for
Long Term Disability (LTD) benefits from the
International Association of Heat and Frost Insulators & Asbestos Workers, No. 118 Health and Welfare Trust Fund.
2. What pension does the
Plan
provide?
Retirement benefits are
based upon the contributions received in respect of
hours of credited service after the start of the
Plan.
The monthly pension
earned for credited service is shown in the following
table:
| Contribution
Rate per hour |
Number of
Hours per Unit |
Monthly
Pension for each Unit |
Monthly
Pension per 2400 hours |
| $ |
|
$ |
$ |
| |
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For Service in 1989
|
| 2.00 |
1000 |
40.00 |
96.00 |
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For Service in
1990
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| 2.25 |
1 |
0.04 |
96.00 |
| |
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For Service
after 1990 through 2001
|
| 2.67 |
1 |
0.045 |
108.00 |
| 3.10 |
1 |
0.045 |
108.00 |
| 3.35 |
1 |
0.045 |
108.00 |
| |
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For Service
January 1, 2002 onward
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| 3.60 |
1 |
1.25%* |
108.00 |
* benefits now accrue as
a percentage for each dollar of contributions.
Since 1989, for members
with at least 175 hours, credits were given for
each and every hour of employment. No credit is
accrued for members working less than 175
hours in year.
Effective January
1, 1997, January 1, 2000 and January 1, 2001, the
accrued benefits for all non-retired members were increased
by 10%, 5% and 1% respectively.
NORMAL RETIREMENT
BENEFIT
A member retiring on his
normal retirement date will receive the full
amount of benefit he has earned for credited
service.
EARLY RETIREMENT BENEFIT
If you retire before age
60, you will receive a reduced monthly benefit,
reflecting the fact that payments are starting
earlier. Sample reduction factors are:
| Age at
Early Retirement |
Reduction
Factor |
Age at
Early Retirement |
Reduction
Factor |
| |
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|
| 59 |
6% |
54 |
36% |
| 58 |
12% |
53 |
42% |
| 57 |
18% |
52 |
48% |
| 56 |
24% |
51 |
54% |
| 55 |
30% |
50 |
60% |
However, after 2001, if
you have worked at least 350 hours in the two
Plan years prior to your retirement (OR you work
at least 175 hours in the year immediately prior
to your retirement), your benefits will be reduced
according to the following schedule:
| Age at
Early Retirement |
Reduction
Factor |
Age at
Early Retirement |
Reduction
Factor |
| |
|
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|
| 59 |
5% |
54 |
30% |
| 58 |
10% |
53 |
35% |
| 57 |
15% |
52 |
40% |
| 56 |
20% |
51 |
45% |
| 55 |
25% |
50 |
50% |
DELAYED RETIREMENT
BENEFIT
If you retire after age
60, you will receive benefit equal to the pension
which you earned to your normal retirement date
plus the further pension earned after age 60. The
pension will also be increased to reflect the
fact that payments are starting later.
DISABILITY RETIREMENT
BENEFIT
The monthly disability
retirement benefit payable to a member who is not
eligible for LTD benefits from the
International Association of Heat and Frost Insulators & Asbestos Workers, No. 118 Health and Welfare Trust Fund, shall be
the amount of his normal retirement benefit
earned to his disability retirement date without reduction.
A disability retirement
benefit shall cease at the earliest of the
following dates:
- your death, or
- the date you cease
to be entitled to disability benefits due to recovery
from total and permanent disability, or
- the first day of the
month on or after your sixtieth (60) birthday.
If you are receiving or
have received disability retirement benefits,
when you reach normal retirement date you will be
entitled to a monthly retirement benefit payable in the
normal form of retirement benefit.
If you become disabled
and receive LTD benefits from the Health &
Welfare Fund then you will be credited with 100 hours
for each calendar month that you are disabled,
including the qualifying period.
Disability credits are
only granted if at the start of your disability you are
an “active” member of the Pension Plan. Associate
members of the Heat and Frost Local 118 Welfare
Plan are not eligible for Pension Plan disability
credits.
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Forms of Pension
1. What is the Normal Form of Pension?
The normal form of
retirement benefit shall be monthly payments to you,
with the first such payment payable at your
retirement date and ceasing with the monthly payment
payable on the first day of the month in which
your death occurs. If you do not receive at least one
hundred and twenty (120) monthly payments, then
payments will be continued to your beneficiary or
estate until a total of one hundred and twenty
(120) monthly payments have been made. This is
the kind of pension you are earning with the
formula described above.
2. What is the Mandatory Form of
pension?
If you have a spouse
when you retire, pension legislation requires you to choose a
form of pension so that upon your death,
your spouse receives for the rest of her lifetime
at least 60% of the pension being paid to you while
you were alive. This form of pension is mandatory
unless either the payment to your spouse on your
death exceeds 60% or your spouse signs a waiver
form which would allow you to choose some other
form of payment that does not provide your
spouse with the same level of protection.
3. Who is my Spouse?
Your spouse is the
person that you are married to and living with, or is
the person with whom you have been living for at
least two years but to whom you are not
married.
4. What are the Optional
Forms of
pension?
If you feel that your
needs would be better served by a different form of
pension and your Spouse signs the waiver form,
you may choose one of the following options:
- A pension payable
for your lifetime, and on
your death, a pension
reduced to 50% or some other acceptable
percentage payable to your spouse for her remaining
lifetime.
A pension payable
for your lifetime, with a guarantee of at least 60
or 180 monthly payments, or with no guarantee.
Any other form of
pension which involves life contingencies and which
is approved by the Trustees.
Without the waiver, you
may also choose a pension that continues unreduced
upon your death, or which reduces to 67%
or 75%.
When you are approaching
retirement, you should contact the Plan
Administrator, D.A. Townley and Associates Ltd., to ask
for estimates of your pension amounts.
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General Information
1. Apply in advance for your Pension!!
You must make written
application in advance to start receiving
retirement benefit payments. You
should apply 2 months
before the date you want your pension to start.
Benefit
payments will not be made retroactively.
Payments will not start
until you make written application, including
selection of Optional Form, and the Trustees have
had the opportunity to verify your eligibility for
benefits. Once benefit payments have started, they will
continue throughout your lifetime and will
end with the payment for the month in which your
death occurs. Further payments may be payable
to your beneficiary or joint annuitant
depending upon the form of benefit you chose when you
retired.
2. What happens if I return to employment after my
pension
starts?
If you return to active
employment with a participating Employer after
retirement, you shall continue to receive retirement
benefit payments. However, you will not
earn any additional pension benefits for the hours
of employment or contributions remitted to the Plan
while retired.
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Other Sources of Retirement Income
1. What other sources of
retirement
income are available to
me?
Old Age Security (OAS)
is available at age 65 to
every senior in Canada.
OAS will provide you with about $5,600 a year
(in 2005). There is a Canadian residency
requirement for this benefit, but you will receive it
no matter what your level of income. If in total,
your income exceeds $61,000 (in 2005) the benefit will
be adjusted downward.
Since you have been
working and contributing to the Canada Pension Plan
(CPP),
you will also receive a CPP benefit.
The amount of pension available depends on how
much and for how long you have contributed to
the CPP. If you worked or were self employed in
most years between the ages of 18 and 65 and
earn about the average Canadian wage (about
$38,000), at age 65 you will receive a CPP retirement
pension of about $9,000 annually.
Both OAS and CPP are
fully indexed to the cost of living.
CPP also provides
disability and survivor benefits. Your Spouse will also be
entitled to OAS and may be eligible for CPP as
well. Both these benefits are administered by Human
Resources Development Canada. Further
information is available from them on their website at
www.sdc.gc.ca
or toll free at
1-877-454-4051.
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Illustrations
1.
Are any illustrations available to me regarding retirement
pension benefits?
Yes. The Heat and Frost Local Union 118 Pension Plan
Booklet contains illustrations on pages
16
and 17.
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PDF - 65 Kb)