D.A. Townley  -  Plan Administrators Iron Workers Union Local 97 International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers 
 

pension
plan

        
 
 
 
 
     
   
 
 
 
 
 
 

Retirement

  1. How are normal retirement benefits determined?
  2. When am I eligible for an unreduced retirement benefit?
  3. Can I start my pension prior to age 60?
  4. What are the disability pension benefits?
  5. For how long are retirement benefits paid, and do I have a choice of pension options?
  6. Can I integrate my pension with the pensions I receive from the Canada Pension Plan and Old Age Security?
  7. When do my retirement benefits start?
  8. When should a retirement application be filed?
  9. Do I have to retire on Pension on reaching normal retirement age?
  10. Who is my "Spouse" for the purposes of the Plan? 

 

 
 

4. How are normal retirement benefits determined?
Retirement benefits are calculated in accordance with a formula, which can and has changed over time, based on the recommendations of the actuary and their assessment of the plan's affordability to pay benefits. The formula for calculating your accrued pension in the plan is as follows:

1. A monthly pension of $16.80 per month for each year of Credited Past Service. 

plus
 
2. A monthly pension of $28.50 per month for each 1000 pensionable hours credited for contributions made to the Plan in the period August 1, 1968 to December 31, 1988. 

plus
 
3. A monthly pension of $45.00 per month for each 1000 hours worked from January 1, 1989 to December 31, 1991. 

plus
 
4. A monthly pension of $60.00 per month for each 1000 hours worked after January 1, 1992 and up to December 31,1995, 

plus
 
5. A monthly pension of 1.71% of the contributions received in respect of the hours worked by the Employee after January 1, 1996 and up to December 31, 2004

plus
 
6. A monthly pension of $75.00 per month per 1000 hours worked at the standard contribution rate on or after January 1, 2005.

In addition, the Trustees have approved a number of ad hoc increases. 

An example can be found under Question #4 of the Pension Plan Booklet





5. When am I eligible for an unreduced retirement benefit?
This summary refers only to the rules that apply on retirement up to and including December 31, 2007. The trustees will review the financial position of the Plan from time to time to determine if the rules that apply on retirement up to and including December 31, 2007 may be applied to retirements after that date. 

If you are an active member at your time of retirement, and retire on or before December 31, 2007, you are eligible to retire unreduced at age 60. 

If you are a terminated member at your time of retirement, and retire on or before December 31, 2007, and became terminated prior to May 28, 2003 then you are eligible to retire unreduced at age 60. 

If you are a terminated member at your time of retirement, and retire on or before December 31, 2007, and became terminated after May 28, 2003 then you are eligible to retire unreduced at age 65.



6. Can I start my pension prior to age 60?
Yes, your pension may start as early as age 55, provided you have 2 or more years of Continuous Plan Membership. If you retire early, your pension will be reduced depending upon which of the following criteria applies to you.

If you were an active member at the time of your retirement, and retire on or before December 31, 2007, you are eligible to retire with a reduced pension starting at age 55. Your pension will be reduced by ½% for each month you retire prior to your 60th birthday. For example, if your retired at age 57, your pension would be reduced by 18%. 

If you are a terminated member at your time of retirement and became terminated prior to May 28, 2003, and retire on or before December 31, 2007, then you are eligible to retire with a reduced pension starting at age 55. Your pension will be reduced by ½% for each month you retire prior to your 60th birthday.

If you are a terminated member at your time of retirement, and retire on or before December 31, 2007, and became terminated after May 28, 2003 then you are eligible to retire with a reduced pension starting at age 55. Your pension will be actuarially reduced from age 65.



7. What are the disability pension benefits?
If you become totally and permanently disabled you may be eligible to retire immediately and receive 60% of your accrued pension 

To be classified as “totally and permanently disabled” you must provide medical evidence of your disability to the Trustees, and you must have qualified for and be eligible for CPP disability benefits. You must not have reached normal retirement age, and you must have two years of Participating Service in the Plan, in the two Plan Years immediately prior to the year of your disability. You must have been “totally and permanently disabled” as defined above, for six months.




8. For how
long are retirement benefits paid, and what retirement benefit options do I have available to me at retirement?
Your pension is payable for your entire lifetime. If you do not have a spouse, you will be given options at retirement of pension forms that range from one that ceases on your death to ones that have a guarantee period of 5, 10 or 15 years. If you choose a pension with a guarantee period and die before the guarantee period expires, payments will continue to your designated beneficiary for the rest of that guarantee period. 

If you have a Spouse, then the monthly pension is payable for your lifetime. In addition to the options listed above, you will be given “joint life and last survivor” options that have payments continue to your Spouse, should you predecease her. You may choose to have your pension continue to your Spouse at 50%, 60% 75% or 100% of the lifetime pension you received at retirement, following your selection of your pension option. The amount of pension with each option is determined by your age and the age of your spouse at the time of your retirement. Pension legislation dictates that you must select an option that provides a pension of at least 60% continuing to your Spouse upon your death. If you choose an option that provides less than 60% of your pension to your Spouse, your Spouse must seek independent legal advice to inform her of her rights, and she must sign a spousal waiver form waiving her rights to your pension.

Examples can be found under Question #8 of the Pension Plan Booklet



9. Can I integrate my pension with the pensions I receive from the Canada Pension Plan and Old Age Security
?
On retirement, before age 65 you could elect to bridge your pension with your Canada Pension Plan (CPP) and/or your Old Age Security (OAS) benefits which start at age 65. The Plan would pay more pension up to age 65 and then your pension from the Plan would reduce at age 65 when your Government benefits began, so that your income from all sources is more or less level throughout your retirement years. The examples provided are for illustrative purposes only. The actual amount payable depends on your age at retirement as well as CPP and OAS rates in effect at the time..

An example of integration with the Canada Pension Plan and Old Age Security is available under Question #9 of the Pension Plan Booklet.



10. When do my retirement benefits start?

Once your application has been received and your hours of work in the relevant period(s) prior to your retirement have been confirmed – then your retirement benefits will start on the first day of the month following the date on which you become eligible for the benefit. If you do not make application for benefits until after you become eligible for retirement benefits, the payments will commence on the first day of the month following the date your application is received. If you are retiring on a disability pension, the benefit will commence two months after the date you became entitled to CPP disability benefits provided you meet the eligibility requirements.



11. When should a retirement application be filed?
In order that time is available to review the optional forms of pension and complete the necessary forms, you must contact the Administrator’s office at least three months in advance of your retirement date to ensure that you receive your pension on your chosen date of retirement. Once you have received your forms, applications for retirement should be filed on a form available from the Administrator’s office at least one month in advance of the first of the month on which retirement benefits are expected to begin. For example, if you will be eligible to retire on December 1st, you should request your forms no later than September 1st and have your completed forms returned to the Administrator's office before November 1st.



12. Do I have to retire on pension on reaching normal
retirement age?
No. The age at which you retire is entirely your decision. However, your pension must commence prior to the end of the year in which you turn age 69.



13. Who is my "Spouse" for the purposes of the Plan?
“Spouse” shall mean, in relation to another person:

  1. a person who, at the relevant time, was married to that other person, and who, if living separate and apart from that other person at the relevant time, did not live separate and apart from that other person for longer than the 2 year period immediately preceding the relevant time, or

  2. if paragraph (a) does not apply, a person who was living and cohabiting with that other person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender, and who had been living and cohabiting in that relationship for the period of at least 2 years immediately preceding the relevant time.



 


Form Link
Retirement Forms
 

related Links
Printable Version of the Pension Plan Booklet

 
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