B
How your lifetime Pension Plan works:
- Your plan is a jointly trusteed pension plan covering eligible CMAW members in Canada.
- Your plan is a Target Benefit Plan. This means that your pension benefit is defined using a formula, and the negotiated contributions are invested to provide this “targeted” level of benefit. If the plan’s financial health does not meet certain levels, additional contributions must be negotiated, or benefits must be reduced. If the plan’s financial strength is very good, it is possible to increase benefits.
- Employers pay contributions into the plan on behalf of all members. These contributions are pooled together into a fund and are carefully invested. The fund grows with investment income (interest) and contributions. This money is used to finance all benefit payments.
- Your normal pension start date is age 65, but you may apply to start your pension as early as age 55. If you start your pension before age 65, your pension is reduced to be equivalent in value to the pension which would otherwise begin at age 65. Income tax legislation requires that you elect to begin your pension by December of the year in which you reach age 71.
- Your pension does not start automatically, and benefit payments will not be made retroactively. You should apply 3 months before the date you want your pension to start.
- The standard form of pension is a monthly payment for as long as you live, with a 5-year guarantee; if you die within 5 years, payment continues to your beneficiary until 60 payments have been made. The Plan also offers guaranteed periods of 10 or 15 years. If, however, you have a spouse when your pension starts, you must choose a “joint and last survivor” form of pension which pays your spouse at least 60% of the original amount if you die before your spouse. If your spouse signs a waiver, you can choose a form of payment which provides for less than a 60% continuation upon your death.
- You may designate or change a beneficiary under the plan at any time by completing a form provided by the Plan Administrator. If you have a spouse upon death, your spouse will be the beneficiary regardless of your beneficiary designation.
- If you are an actively employed member and die before collecting your pension, the plan provides a pre-retirement death benefit payable to your spouse. If you do not have a spouse or if your spouse has waived his/her right to a pre-retirement death benefit, the benefit is paid to your designated beneficiary or estate. As per the BC Pension Benefits Standards Act, the pre-retirement death benefit is calculated as 100% of the monthly pension you have earned up to your death and payable at age 65, plus a refund of any employee contributions with interest.
For a more detailed description of how your plan works, please refer to your Pension Plan booklet.
To the extent that there is any conflict between the content of this website and a provision of the Trust Agreement, an applicable insurance policy or benefit contract, or applicable legislation, the provision of the Trust Agreement, insurance policy, benefit contract or applicable legislation (as the case may be) will prevail.
