Termination of Employment before Retirement

If you terminate employment with the Company for any reason other than death or retirement, your Plan benefits are based on Federal Pension Legislation (PBSA) as follows:

With less than 2 years of Service - you will receive a refund of your contributions plus interest

With 2 or more years of Service and under age 55 - you may transfer the commuted value of your accrued benefit to either a "locked-in" RRSP, a LIF(Life Income Fund), another Pension Plan if transferred funds are accepted, purchase an immediate or deferred annuity or you may leave your accrued benefit in the Plan and apply for a pension under the rules in effect at the time of retirement.

With 2 or more years of Service and over age 55 - you must leave the accrued benefit in the Plan and apply for a retirement benefit under the plan rules in effect at the time of application. This becomes a Deferred Annuity until such time as you start collecting it as a pension.

Commuted Value

This is an actuarially calculated value (lump sum) of your accrued benefit on the date of termination. This calculation takes into consideration your accrued benefit, your age and prescribed interest rates at the date of termination. The calculation uses an assumption that you will retire at age 65.

"Locked-in" RRSP

Pension Plan benefits earned are subject to a "locked-in" provision as prescribed by the Federal Legislation (PBSA). "Locked-in" benefits mean that these funds must be used to provide you with a lifetime income at retirement. The receiving plan or financial institution is required to "lock-in" the pension funds as a condition of the transfer. "Locked-in " provision is required by PBSA. The earliest you would have access to the funds is age 55.

Transferring Funds to a Financial Institution

If you request the commuted value to be transferred you must first contact your financial institution for the appropriate forms. The forms will be a Revenue Canada Form T2151 and your financial institution's Federal locking-in agreement. Upon receipt of acceptable documentation the monies will be transferred and a notification will be sent to you.

RRSP Contribution Room during Plan Membership Years

It may be restored depending on the value of pension credits reported as PAs on your T-4 slips. (see Section 1, Eligibility and Plan Participation).

Transfer to Employment not subject to the TWU Collective Agreement you will become a Former Participant under this Plan and be entitled to a Deferred Pension only. As long as you remain employed by a participating employer you will not have the option of a terminated employee to transfer the commuted value.

Bridging your Retirement Benefit

If you chose to defer your accrued benefit when your employment was terminated you are considered to be a Former Participant. A Former Participant who re-enters the Plan as a new Participant and remains a Participant for five (5) years after their date of re-entry will have their deferred retirement benefit recalculated removing the break in service and treated in every way under the Plan as though it were part of the current retirement benefit. If a member transfers their accrued benefit prior to re-entering the Plan their retirement benefit will not be bridged and will be treated as a new Participant with no previous service.