pension
plan

Plan History & Objective

1. When was the Plan established?
2. Who is Covered Under the Plan?
3. What Contributions are Made to the Plan?
4. What is the objective of the Plan?
5. When May You Retire and Begin to Receive a Pension?
6. What Retirement Benefits are Provided by the Plan?

1.When was the Plan established?

The Plan went into effect on January 1, 1975. The Plan was most recently amended as of January 1, 2001. The Plan is a Defined Contribution (money purchase) Plan.

2.Who is Covered Under the Plan?

Each person who is working under the terms of the Collective Agreement between an Employer and The Machinist, Fitters & Helpers Local 3 and is a member of the union, shall automatically participate in the plan. An enrolment card must be completed by each Member and submitted to the Administrator.

 

3.What Contributions are Made to the Plan?

Each participating Employer will contribute on an hourly rate at the amount stipulated in the Collective Agreement.

4.What is the objective of the Plan?

The Plan is designed to provide a monthly life income for Members who retire under the Plan. Additionally, benefits are payable if you leave the Plan prior to retirement or if you die prior to retirement.

 

5.When May You Retire and 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 65th birthday. You may also retire when you have accumulated 30 years of credited service.

Early Retirement

A Member who is age 55 or older may elect to receive pension benefits as of the first day of any month, provided that you have 5 years of credited service and that you have stopped working under the Collective Agreement.

Delayed Retirement After Age 65

If you continue to work beyond your normal retirement date, then you may receive a pension on the first day of any month following your normal retirement date. You must, however, retire no later then the end of the 2 calendar year following your 69th birthday. You may earn pension credits up to the date that you start to receive pension. You will not receive any credit for pension contributions received after your retirement date.

Disability Retirement

If you become totally and permanently disabled as defined under the Plan, you may retire on a disability retirement date which may be the first day of any month before your 65th birthday and after the date your permanent and total disability is found to be total and permanent by the trustees. A Member is considered to be permanently and totally disabled under the Plan if, in the opinion of the Trustees and based on medical evidence, the Member is deemed to be unable to engage in any gainful occupation or employment. In no event, however, will disability be considered to be permanent until it has continued for a period of at least 6 months.

     

6. What Retirement Benefits are Provided by the Plan?

Retirement benefits are based upon the contributions received in respect of hours of credited service after the start of the Plan, up to the date of your retirement.

The contributions received on your behalf are invested in a Trust Fund. The Trust Fund is managed by professional money managers selected by the Board of Trustees. Each year there is credited to your account, interest at the net rate earned by the Plan. At retirement the amount of money in your Account is used to provide you with retirement income.

When you retire, the amount of money in your account will be used to buy a pension, in the form of an annuity, which will provide you with retirement income. If you do not wish an annuity to be purchased on your behalf, you will be able to transfer your money out of the Plan into another financial instrument that will provide income in retirement.

You will be given a number of options when you retire, including an annuity. If you do not wish an annuity to be purchased on your behalf, you will be able to transfer your money into an RRSP, or use it to buy a Registered Retirement Income Fund (RRIF) or a Life Income Fund (LIF). The money contributed by your Employer after 1992 will be deemed to be “locked-in”. Locked-in money is money that can only be used to buy you retirement income. It will never be available to you in cash.

Any Member who is coming up to retirement should contact the Plan Administration at least 3 months before retirement to ask for estimates of their pension amounts.