WHEN IS MY MEMBERSHIP IN THE PENSION PLAN TERMINATED?
Your membership in the Plan continues unless it is terminated in one of four ways:
- following six (6) consecutive months during which no contributions are received on your behalf after your expulsion from Local 46;
- you transfer your union membership to another local union or you become a member of another pension plan;
- you receive an honourable withdrawal from Local 46; or
- you apply for and receive a transfer of your pension credits. You are eligible to apply for such a transfer only after the date 24 months after the last date worked for which a contribution was made on your behalf. The transfer will not be payable any earlier than 24 months after the date last worked for which a contribution was made your behalf.
You should be aware that if you opt for a transfer of your Pension Plan benefits, you can qualify for assisted active coverage in the Health Plan only if contributions are subsequently received on your behalf for at least 15,000 hours at the full rate and provided all other requirements are satisfied. Also, you will not qualify for assisted or free retiree coverage if you take or have taken a pension transfer.
WHAT BENEFIT AM I ENTITLED TO WHEN MY MEMBERSHIP IN THE PENSION PLAN TERMINATES?
If your membership in the Pension Plan terminates you should contact the Benefits Office to discuss your situation. On the termination of your Plan membership, you are entitled to receive a pension at age 65 equal to the amount of pension you had earned based on the terms of the Plan when your membership terminated. Alternatively, you can transfer the commuted value of this pension to a ‘locked-in retirement account’ or to another employer’s pension plan, provided you have not attained age 55. All benefits you have earned are ‘locked-in’ and cannot be paid in cash. The commuted value is multiplied by the Plan’s Transfer Ratio which may be less than 1. The Transfer Ratio is determined at the beginning of each quarter and applies to terminations occurring in the quarter.
If you transfer your membership to another local union that has a pension plan with a reciprocal agreement with the Local 46 Plan, or you become a member of another pension plan, it may be possible to have your Local 46 pension entitlement (multiplied by the Plan’s Transfer Ratio which may be less than 1) transferred to the new plan provided you have not attained age 55. Contact the Benefits Office and the administrator of the other plan to inform them that you are considering a transfer of pension. You should determine the pension from the Local 46 Plan that you would be giving up and the pension you would get from the new plan in return for the transfer. These two amounts may not be the same. If you elect not to transfer your pension entitlement to your new plan, you will receive a deferred pension payable at age 65 from the Local 46 Pension Plan. Alternatively, you may transfer the commuted value of your pension, multiplied by the Transfer Ratio which may be less than 1, to a ‘locked-in retirement account’ provided you have not attained age 55. You should notify the Benefits Office whether or not you decide to go ahead with the transfer.
If you die following your termination from the Plan but prior to age 65, your eligible spouse or designated beneficiary will receive the commuted value of the deferred pension that you would have received at age 65.
WHAT HAPPENS IF I BECOME DISABLED?
If you become permanently and totally disabled and are medically certified to be unable to work at any paid occupation, and not expected to recover, and are age 55 or over, with ten (10) years of credited current service in the Plan, and you qualify for a disability pension under the Canada Pension Plan, you are eligible to receive a disability pension equal to the pension you have earned to the date of your disability retirement.
If you are totally and permanently disabled, contact the Benefits Office. They will discuss with you the relative advantages of a disability pension vs. the long term disability benefits under the Health Benefits Plan.
Disability pension under this plan is paid on top of any disability pension under the Canada Pension Plan. At age 65, you may also be entitled to a retirement pension from the Canada Pension Plan and to Old Age Security benefits.
Note: You will not be entitled to any Supplementary Bridge Benefit if you commence receiving a disability pension, and the normal form of pension will apply. You must re-apply for your normal retirement pension at age 65.
WHAT HAPPENS IF I DIE?
If you die before retirement, your eligible spouse will receive the greater of the total of contributions made on your behalf to the Pension Plan plus accumulated interest and the commuted value of the pension earned, and increases granted, after 1986, if greater, that would have been payable at age 65. Alternatively, your spouse may elect that the benefit be paid in the form of an immediate, or a deferred, life annuity. If you do not have an eligible spouse, the benefit will be paid to your designated beneficiary or your estate.
If you die after retirement, the benefit payable to your eligible spouse or beneficiary will be as described earlier.
If there is a change in your marital conditions or if you wish to designate or change your beneficiary, you should notify the Benefits Office who will send you a form which you should complete and return to them.