The Pension Plan operates in much the same way as the Benefit Fund.
The benefits are administered in accordance with the terms and conditions as detailed in the Pension Plan Text,
which is filed with the Financial Services Commission of Ontario (FSCO)
and Canada Customs and Revenue Agency (CCRA).
The Trustees hire investment managers
to assist in obtaining a reasonable, low risk rate of return.
The investment managers make investments in accordance with government regulations
and the Statement of Investment Policies and Procedures (SIP&P) established
by the Trustees and reviewed annually. The investment returns are measured,
by an outside consultant every six (6) months, to evaluate the performance
of the investment managers.
The Pension Plan started in 1962
with contributions of $.05 cents per hour. Currently your employer contributes over $5.00
per hour on your behalf and the Plan's assets now exceed $190 million.
Asbestos Worker's Local 95 Pension Plan Market Value of Assets
as at June 30, 2007
Investment Manager
Assets
State of Israel Bonds
$6,482,554.00
Lancaster
$56,903,775.00
Morrison Williams
$36,616,672.00
Alternative Investments
$1,217,913.00
Sceptre
$108,663,871.00
Total
$209,884,787.00
Asset Mix as at June 30, 2007
Asset Class
Percentage
Canadian Bonds
32.9%
Foreign Bonds
3.1%
Canadian Equities
38.3%
Foreign Equities
19.9%
Alternative Investments
0.6%
Cash, Short Term
5.2%
Total
100%
General Provisions of the Pension Plan
Membership and Eligibility
You will become a "Member" of the Pension
Plan ("Plan") when you become a first year apprentice and work for an employer who is required to make contributions
on your behalf.
Benefit Costs Under the Collective Bargaining Agreement,
your employer must make contributions to the Plan for each hour you work. These contributions and investment
earnings pay the full cost of the benefits you are entitled to receive.
Retirement Age
The normal retirement date under the Plan
is age sixty-five (65).
You are eligible to receive pension benefits from either:
(a) the first day of the month, if you are age sixty-five (65) on that day; or
(b) the first day of the next month after your sixty-fifth (65th) birthday.
You may continue to work after age sixty-five (65) and increase your pension. However, you must
begin receiving pension benefits before your sixty-ninth (69th) birthday, in accordance with government legislation.
If, after you begin receiving a pension, you return to work, your employer is required to make
contributions to the Plan in accordance with the Collective Agreement, for each hour you work. However, your pension will
not be adjusted unless you request to have your pension suspended.
Amount of Pension Payable
When you retire, you will
receive a monthly pension based on the current benefit level (effective June 1, 2001):
(a) a monthly pension of $.0323 for each hour of credited service up to August 31, 1990; plus
(b) a monthly pension of $.085 for each hour of credited service from September 1, 1990 to May 31, 2001; plus
(c) a monthly pension of $.102 for each hour of credited service after June 1, 2001..
Early Retirement
If you choose
to retire before age sixty-five (65), your pension will be actuarially reduced for each month you retire before
age sixty-five (65) unless you qualify for Unreduced Early Retirement as described below.
Unreduced Early Retirement
A Member who attains age sixty-three (63)and has worked forty-five thousand (45,000.00) or more
hours for which contributions have been received on your behalf during a single period of Continuous Service,
may with the consent of the Trustees, and on the advice of the actuary be eligible to receive an unreduced
monthly pension commencing at your early retirement date.
A Member as at December 31, 2008 who has attained age fifty-five (55) and worked thirty thousand (30,000.00)
or more hours for which contributions have been received on your behalf during a single period of Continuous
Service, may with the consent of the Trustees, and on the advice of the actuary be eligible to receive an unreduced monthly pension commencing at your early retirement
date, provided he does not continue to work in the Insulating Industry and was:
(a) actively at work or receiving Long Term Disability Benefits in the twelve (12)
month period immediately prior to your Early Retirement Date, or
(b) are an active Member in good standing of Local 95 who has not taken a withdrawal card
and are actively seeking employment.
Nothwithstanding the foregoing, a Member who has not retired on or before
the discontinuance of the Plan shall not be entitled to an Unreduced Early Retirement benefit.
Form of Pension Payments
The normal form of pension under the Plan is a monthly pension payable for your lifetime, but guaranteed
for a minimum of ten (10)years (one hundred and twenty(120)payments).
If you have a spouse
the normal form of pension is a joint and survivor pension, equivalent to the pension described above,
payable for your lifetime, reducing to sixty percent (60%) of the amount being paid immediately
preceding your death, and continuing for the lifetime of your spouse.
However, you may, with the consent or your spouse and subject to the completion of a Spousal
Waiver Form, elect to receive one (1) of the optional forms of pension outlined below:
(a) a monthly pension payable for as long as you live;
(b) a monthly pension payable for the remainder of your life and guaranteed for
a minimum of:
(i) five(5) years (sixty (60)payments): or
(ii) fifteen (15) years (one hundred and eighty (180) payments);
(c) a monthly pension payable for your lifetime and the lifetime of your spouse, or
(d) a monthly pension integrated with the Old Age Security benefit and/or the
Canada Pension Plan pension. This pension is only payable until your attainment of age sixty-five (65)
when it reduces by an amount approximately equal to the Old Age Security benefit and/or the Canada
Pension Plan pension.
Death Benefit
If you should die before becoming eligible for early retirement (i.e before age 55), your spouse or
named beneficiary will receive a lump sum payment equal to:
(a) one hundred percent (100%) of any contributions made on your behalf up to
December 31, 1986; plus
(b) the value of your pension accrued after January 1, 1987.
If you die after you are eligible for early
retirement (i.e. age 55 or older) and you have a spouse at the date of your death, your spouse
will be entitled to receive either the lump sum described above or a transfer of the lump sum to a locked-in
RRSP or another pension plan or to purchase an annuity from a life insurance company. Alternatively,
your spouse may elect to receive a monthly pension commencing on the first day of the month following
your death. The amount of pension payable will be 60% of the pension that would have been payable had
you retired on your date of death.
If you die after
age 65 but before you start to receive your pension, your spouse will receive a monthly pension equal
to 60% of the pension that would have been payable had you retired on your date of death.
If you die after you have started to receive your pension then your spouse or beneficiary will
continue to receive monthly pension payments in accordance with the form of pension you elected when you
retired.
Disability Benefit
If you
become disabled and are eligible for benefits from any of he following:
(a) Worker Place Safety Insurance Board ("WSIB"); or
(b) Canada Pension Plan; or
(c) Employment Insurance Commission; or
(d) Asbestos Workers Local 95 Benefit Plan;
then you will receive disability credits at the rate of one hundred twenty-five (125) hours per month
multiplied by the hourly contribution rate as specified in the Collective Agreement for as long as you are
disabled or to age 55.
At age 55, if you are still disabled, you will receive an Unreduced Early Retirement benefit. If your
Unreduced Early Retirement benefit is less than the amount you were receiving under the Long Term Disability
benefit, then you will receive a supplementary benefit, from the Benefit Fund, payable to age 65, equal to
the difference between your Long Term Disability benefit and your Unreduced Early Retirement benefit.
Termination Benefit
If contributions are not made on your behalf for twenty-four(24) consecutive months,
you will be eligible for a deferreed retirement benefit based on the
benefit level in effect when the last contribution was made on your behalf.
A terminated member may elect to transfer the actuarial value of his
deferred retirement benefit to one of the following:
1. to the pension fund of his new employer if that plan agrees to accept the funds, or
2. to a locked-in Registered Retirement Savings Plan (RRSP) or to a
Registered Retirement Income Fund (RRIF), or
3. to an Insurer to purchase a life annuity.
How to Estimate your Pension Benefit
Your pension at age sixty-five (65) will be approximately the amount shown on your pension statement each year.
How to Apply for Benefits
You should contact the Union Office, or the Administrative Agent and
obtain the necessary forms for completion if you are planning to retire or leaving the Union.
Some Further Points
This Plan is designed to provide you with financial assistance after you retire. Therefore, you
may not assign your rights to receive these benefits to anyone else.
Each year, you will receive a statement showing the amount of pension accrued to date.
Your spouse, or beneficiary will be contacted about any death benefits payable. Please make sure
the Administrative Agent, or the Union Office, always has your spouse's, or your beneficiary's current address.
Taxable Benefits
The
Income Tax Act requires that many of the benefits you receive under this
Plan are to be counted as part of your income for income tax purposes.
In most cases, income tax will be withheld from the Pension benefits
before they are paid to you. You will receive a T4A slip from the custodian
making the payments to you. These amounts must be added to your income
when calculating your taxable income.
Payments on Withdrawal
Payments on withdrawal are subject to federal and provincial legislation and you or your spouse
may elect to transfer your entitlement to one of the following;
1. the pension plan of your new employer, if that plan permits;
2. a prescribed retirement savings arrangement;
3. to purchase an immediate or deferred life annuity which meets the prescribed requirements.
If a lump sum payment is permitted, withholding tax is deducted from the refund.
Government Plans
What do They Pay?
In addition to the pension provided under this Plan, you may be entitled
to benefits from the Old Age Security and the Canada/Quebec Pension Plans.
The maximum Old Age Security monthly pension is $491.93 as at January 1, 2007.
The maximum Canada/Quebec Pension Plan monthly pension is $863.75 as
at January 1, 2007.
Are These Benefits Taxable?
Any pension benefit payments you receive under the Canada/Quebec and Old Age Security Pension Plans must be added to your taxable income for the year you receive them.
Government Plans