Frequently asked questions about the Pension Plan

Membership

Who is eligible to become a member of the plan?
Any person who is a member in good standing with Local 115, 115A, 115B, or 115C of the International Union of Operating Engineers.

When do I become a member of the Pension Plan?
On the first day of the month in which your application for membership is received by the Pension Trustees and you are a member of the Union.

Can a person who is not a member of the Plan become entitled to any benefits under the Plan?
No, not unless that person is the spouse or beneficiary of the member.

What information will I receive about the Plan?
(a) A statement showing a summary of the benefits which you have earned will be sent to you each year.

(b) If the Plan is changed, you will be provided with an explanation of the change, at the time the next annual statement is provided.

(c) When an application for termination benefits is made, you will be provided with a written statement showing the benefits to which you are entitled or to which you may become entitled.

(d) On your death, your spouse will be provided with a written statement showing the benefits payable as a result of your death.

(e) When an application for retirement is made, you will be provided with a written statement showing the benefits you are entitled to and appropriate forms that must be filled out.

You may examine the Plan documents at the Plan office at least once annually.

Top

Earning a pension

Is my employer required to contribute to the Plan?
Yes, if you are in a position covered by a collective agreement that requires your employer to contribute to the Plan.

Am I required to contribute to the Plan?
No.

Are the contributions made by my employer taxable?
No, these contributions are not added to your income and are therefore not taxable.

How do I earn a pension?
By having hours of covered employment reported and contributions paid to the Plan by a participating employer during a Plan year.

What is a Plan year?
The period beginning May 1st in one year and ending on April 30th in the following year.

Should I keep pay slips?
Yes. Errors can occur in reporting or tabulating your hours. You should keep a record of:
(a) your employer(s),
(b) the address(es) of your employer(s), and
(c) the hours you were employed each month.

Should I notify the Administrator if I move?
Yes.

Top

Self payments

Can I make self-payments to increase the pension which I have earned during the Plan year?
Yes.

What are the requirements for making a self-payment?
You must have at least 100, but less than 3,000, hours of covered employment during the Plan year.

At what rate are self-payments made?
Self-payments are made at the rate per hour paid by your employer at the end of the Plan year, adjusted to reflect the actuarial cost of the self-payment based on your age.

What is the maximum number of hours of covered employment for which self-payments can be made in a Plan year?
A maximum of 3,000 hours of covered employment for the Plan Year.

If I die, can my spouse or beneficiary make this self-payment?
No.

When can a self-payment be made?
A self-payment for the Plan year will be accepted by the Administrator during the 4 months following the date your annual statement is mailed.

Can I make a self-payment for the Plan year in which I retire?
Yes.

Can I claim my self-payments as a tax deduction?
Yes.

Top

Retirement dates

What is my normal retirement date?
Your normal retirement date is the first day of the month immediately following your 65th birthday.

What are the earliest dates I can retire and begin receiving my pension?
You may retire on the first day of any month prior to your normal retirement date provided you are age 55 or older and have completed at least 2 years of continuous Plan membership. If you are member of the Union, you may retire if you have attained age 55 and completed at least 3 years of continuous membership in the Union and the Trustees determine you are totally and permanently disabled. Your disablement must have continued without interruption for at least 12 months.

What is the latest date I can begin receiving my pension?
December 1st of the year in which you attain age 69.

Top

Amount of pension

How much pension will I receive if I retire on my normal retirement date?
The amount of pension will be calculated by adding together the amount of monthly pension which you have earned under the Plan in each Plan year. This total will be adjusted for the form of pension you choose.

How much pension will I earn for each Plan year?
For each Plan year on and after May 1st, 2000 you will earn a monthly pension equal to 1.8% of the contributions reported and paid to the Plan for each 200 hours of covered employment, up to a maximum of 3,000 hours of covered employment.

How much pension have I earned to date?
Your latest annual statement provides the following information:
(a) the total amount of monthly pension you earned in the previous Plan years.
(b) the number of hours of covered employment credited to you during the most recent Plan year.
(c) the amount of monthly pension you earned during the most recent Plan year, and
(d) the total amount of monthly pension earned up to the end of the most recent Plan year.

Example:
Contribution Rate                                                                     Monthly Pension Earned

$1.00 per hour 200 hours = $200 x 1.8% =                                         $3.60

$2.00 per hour 200 hours = $400 x 1.8% =                                         $7.20

$3.00 per hour 200 hours = $600 x 1.8% =                                       $10.80

When will my pension be paid?
If you are eligible for a pension, your first pension cheque will be payable on the first day of the month following the month in which you apply and the Plan office has received all required documentation. Subsequent payments will be issued monthly thereafter.

What happens if I return to work after my pension has commenced?
Your pension will be suspended if you return to work for a Participating Employer. Your pension will not be suspended if you return to employment totally unrelated to the industry in which you earned your pension. Your pension will not be suspended if you have reached age 69.

For how long will my pension be suspended?
Until such time as you again retire. Your pension will recommence on the first day of the month immediately following receipt of your application for pension.

Can I earn further pension?
Yes, if your return to employment is with an employer who contributes to the Plan, and you return to employment for more than 2 years, or if you are past age 65 and less than age 69. You are required to complete a new enrollment card on the Plan. If you return to employment with an employer who does not contribute to the Plan you can not earn further pension.

If I retire between the ages of 55 and 60 will my pension be reduced?
Yes.

How much will the reduction in pension be?
The amount of the reduction depends on whether or not:
(a) you are a member of the Union, and
(b) you have completed at least 12 years of continuous membership in the Union.

If you are a member of the Union and are age 55 or older and have completed at least 12 years of continuous membership in the Union your pension will be reduced by ¼ of 1% for each complete month your retirement date precedes the first day of the month immediately following your 60th birthday.

If you are a member of the Union and are age 55 or older and have completed at least 3 years of continuous membership in the Union and the Trustees determine you are totally and permanently disabled your pension will be reduced by ¼ of 1% for each complete month your retirement date precedes the first day of the month immediately following your 60th birthday. Your disablement must have continued without interruption for at least 12 months.

If you are a member of the Union and do not fulfill one of these requirements, but have completed at least 2 years of continuous Plan membership, your pension will be reduced by ½ of 1% for each completed month your retirement date precedes the first day of the month immediately following your 65th birthday.

If you are not a member of the Union, but have completed at least 2 years of continuous Plan membership, your pension will be reduced by ½ of 1% for each completed month your retirement date precedes the first day of the month immediately following your 65th birthday.

Top

Forms of pension

In what form is a pension paid?
A pension is paid in either the Normal Form or an Optional Form.

What is the Normal Form of Pension?
If you do not have a spouse on the date your pension commences, a pension is paid for your lifetime or for 60 months, whichever is the longer period.

If you have a spouse, on the date your pension commences, you are paid a reduced pension for life. On your death, 67% of this pension is paid to your spouse for your spouse's remaining lifetime.

What is an Optional Form of Pension?
An Optional Form is a pension which you may choose instead of a pension payable for your lifetime or 60 months, whichever is the longer period.

This pension has the same value as a pension which is payable for your lifetime or 60 months, whichever is the longer period.

Can I choose an Optional Form of Pension at the date my pension commences?
Yes. If you are married, your spouse must sign a pension waiver form. This waiver must be completed and signed no more than 90 days prior to the date your pension is to commence. If you are not married you must complete a Declaration form certifying you do not have a legal spouse.

What Optional Forms of Pension can be chosen?
Some of the Optional Forms of pension which may be chosen are:
a) an increased pension payable for your lifetime, or
b) a reduced pension payable for your lifetime or for 120 months, whichever is the longer period, or
c) a reduced pension payable for your lifetime or for 180 months, whichever is the longer period, or
d) a reduced pension payable for your lifetime. On your death 100% of this pension is paid to your spouse for life, or
e) a reduced pension payable for your lifetime. On your death, 50% of this pension is payable to your spouse for life.

Can I change the form of pension I have chosen?
Yes, provided you do so before your first pension payment has been made.

Top

Death Prior to Retirement

Will a benefit be paid on my death?
Yes, if you have completed at least 3 years of continuous membership in the Union, or 2 years of continuous Plan membership, whichever occurs first.

Who will the benefit be paid to?
The benefit will be paid to your spouse if you have a spouse at your date of death. If you do not have a spouse the benefit will be paid to your beneficiary or estate, whichever is applicable.

What is the benefit?
The commuted value of the spouse's or beneficiary's pension entitlement shall be at least equal to 60% of the commuted value you would have been entitled to on the day before your death.

If you are married, your spouse is entitled to an immediate pension or the commuted value of that pension. Your spouse may choose a monthly pension which is payable:
— for life, or
— for life, guaranteed 60 months, or
— for life, guaranteed 120 months, or
— for life, guaranteed 180 months.

If you do not have a spouse, the commuted value of your beneficiary's pension entitlement is paid to your beneficiary or estate, whichever is applicable, in a single payment. If a minor is entitled to a lump sum payment the Administrator shall pay it to the Public Trustee in trust for the minor.

Top

Termination Benefits

When am I eligible for a termination benefit?
You are entitled to a termination benefit if you:

(a) did not have any hours of covered employment reported during the 6 months immediately preceding the month in which you wish to terminate,

(b) are not eligible to receive an immediate pension under the Plan, or

(c) had less than a total of 350 hours of covered employment credited to you in the immediately preceding 2 Plan years.

What is the termination benefit if I have not completed at least 2 years of continuous membership in the Union or at least 2 years of continuous Plan membership?
You will receive a cash termination benefit equal to 100% of the self-payments you have made, if any, to the Plan for hours of covered employment on and after May 1st, 1992 plus interest from January 1st, 1993.

What is the benefit if I have completed at least 2 years of continuous membership in the Union or Plan and am not eligible to receive an immediate pension under the Plan?
If you meet the requirements in this section, Subsection 1(a) or (c):

(a) for service prior to May 1, 1992 you may elect to receive a lump sum cash termination benefit, and

(b) for service on or after May 1, 1992 if you elect a cash termination benefit this amount must be transferred to your personal "locked-in" RRSP or another Registered Pension Plan if the other Plan will accept the transfer and if this transferred amount is "locked-in," or to an insurance company or other savings institution prescribed under the Pension Benefits Act, to purchase a deferred retirement income.

Is a termination benefit payable if I am eligible to receive an immediate pension under the Plan?
No, except for very small amount pensions which may be taken as a cash termination benefit.

What happens if I do not elect a cash termination and am no longer a member of the Union?
If you have been expelled or have withdrawn from the Union and you have been a Member in the immediately preceding 2 Plan Years, you will be entitled to a monthly pension commencing at your normal retirement date.

If I elect a paid-up pension commencing on my normal retirement date, what will be the amount of my pension?
If you have 2 years or more of continuous membership in the Union or Plan, your paid-up pension is 100% of the pension you have earned.

If I elect to receive a cash termination what will be the amount?
The amount of the cash payment will be actuarially equivalent to the value of the pension you have earned.

If I am entitled to a paid-up pension, and die before this pension commences, will my spouse, beneficiary or estate, whichever is applicable, receive a benefit?
Yes, if you have completed at least 3 years of continuous membership in the Union, or at least 2 years of continuous Plan membership.

The benefit is the same as described in Death Prior To Retirement.

Top

Beneficiary

Who can I designate as my beneficiary?
Any person or persons, or your estate. However, if you have a spouse, any benefits which become payable on your death are paid to your spouse. The payment of benefits to your spouse is not affected by your failure to designate your spouse as beneficiary.

Who qualifies as my spouse?
Your spouse means a person who, as at the date your pension commences, or your date of death, if earlier:

(a) is married to you and who, if living separate and apart from you, did not live separate and apart for longer than the 2 year period before your death or retirement, or if there is no such person,

(b) is living with you in a conjugal relationship, and has been living with you for at least two years before your death or retirement.

How do I designate or change my beneficiary?
You must complete the appropriate form, which is available from the Administrator.

What happens if a marriage breakup has occurred between my spouse and I?
Any division of pension benefits depends on the provisions of the Family Relations Act and/or a Court Order. The Administrator is required to follow the Family Relations Act and/or any Court Order in determining any division of pension benefits. Please contact the Administrator if such division of pension benefits is required.

What happens if I do not designate a beneficiary?
If you do not have a spouse, any benefits that become payable on your death will be paid to your estate.

What happens if my spouse or beneficiary dies before I do?
If no further beneficiary is designated, any benefits that become payable on your death will be paid to your estate.

What happens if my spouse or beneficiary receives a benefit from the Plan?
Your spouse or beneficiary will be asked to designate a beneficiary.

What happens if my spouse or beneficiary does not designate a beneficiary?
Any benefits that would have become payable to such beneficiary shall be paid to that person's estate.

Can I change my beneficiary after I retire?
Yes, provided your beneficiary is not your spouse.

How do I, or how does my beneficiary, apply for benefits?
An application must be completed and submitted to the Administrator. A copy of the appropriate application forms can be obtained from the Administrator.

Top

Reciprocity Agreements

What happens if I am temporarily working in the jurisdiction of another Local of the Operating Engineers in Canada?
The Trustees have entered into reciprocal agreements with other Plans in Canada which provide for the transfer of contributions from the other Plan to this Plan.

If I transfer my membership from one Local of the Operating Engineers to another will my pension rights be protected?
Yes, the Trustees have entered into reciprocal agreements with other Locals of the Operating Engineers in Canada and the United States which have similar plans in order to protect the benefits you have earned under this Plan.

Must I inform the Administrator of the Local Union under which jurisdiction I am working?
Yes.

Top