1.Annuity
An annuity is a retirement vehicle that
provides you with continuing monthly income at a level that is
dependent on the total amount of money in your Accounts and
the form of payment that you choose. You would purchase an
annuity from a life insurance company of your choosing. Forms
include a pension for your life, ceasing on your death or
continuing on your death to your spouse at the same level or
at some reduced level of your choosing.
2.Registered
Retirement Income Fund (RRIF)
A RRIF is a registered retirement vehicle into
which the money in your RRSP’s can be transferred to
maintain your registered (i.e. tax exempt) status. The
non-locked-in money from your Accounts can be transferred to a
RRIF. You must receive payments each year (starting not
earlier than age 55 nor later than December 31 of the year you
turn 71). You must receive payments at a minimum level set by
the Canada Revenue Agency from the RRIF. There is however no
maximum payment level. Payment levels can change at any time.
3.Life
Income Fund (LIF)
A LIF is a locked-in registered retirement
income fund (RRIF) contract from which you must receive
payments each year (starting no earlier than age 55 nor later
than December 31 of the year you turn 69). The LIF is a
vehicle designed to provide income from that portion of your
Accounts that is locked-in. You will be asked to choose a
payment level anywhere between a minimum and a maximum.
4.Definition
of Spouse
Your spouse is a person to whom you are
married and not living separate and apart from or a person
with you have been living (whether they be of the opposite or
same gender) for the 2-year period preceding the relevant
time. If you have a Spouse, you must, by law, receive your
pension in a form that will provide him or her with at least
60% of the pension that was in payment to you during
retirement. Your Spouse can choose to waive his or her right
to this mandatory form, and allow you to choose some other
form of income.
5.Application
for Retirement Benefit
You must make written application requesting
commencement of retirement benefit payments at least 3 months
before retirement.
6.Vesting
Vesting means that a Member has a right to
receive a pension benefit on retirement. At present your Plan
requires 1 year of Credited Services and being a member of the
Union before you become fully vested in the pension
accumulation to date. A year of Credited Service is earned if
you work 175 or more hours in a Plan Year for a participating
employer.
7.Payments and Summary Comparison
You can request a report showing various retirement income payments by contacting D.A. Townley. Click here for an explanation of this service, as described in a Newsletter.
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