- What is a Pension Plan?
- How is my Pension calculated?
- What are the Benefits in my Local 30 Pension Plan?
- What is the earliest date I can retire?
- What if I die?
- What if I am disabled?
- What if I have a Spouse?
- How do I get my Pension?
- How is the Pension money invested?
A Pension Plan is a way of saving so that you have some income when you retire. Employers working with Local 30 contribute to a Pension Plan for Members of Local 30. You should also save on your own so that you have a comfortable life after you retire. Most people save on their own using RRSPs.
For Contributions earned up to December 31, 1998, your Monthly Pension is determined by the number of hours you work for an Employer making Contributions to the Pension Fund. Each 1680 Contributory Hours is called a "Year of Credited Service". If the number of hours worked in any calendar year is more, or less, than 1680, the amount of Monthly Pension will be increased, or decreased, to exactly reflect the number of hours worked. Monthly Pensions are payable, in full, upon retirement at age 63. A Monthly Pension must start no later than the end of the calendar year in which you attain age 71.
Your Monthly Pension is the sum of all the following:
|Service Period||Monthly Pension for each Year of Credited Service|
|Before January 1, 1959||$5.00|
|Jan 1, 1959 - Dec 31, 1980||$18.60 (See Special Note)|
|Jan 1, 1981 - Dec 31, 1984||$30.60|
|Jan 1, 1985 - Dec 31, 1986||$39.30|
|Jan 1, 1987 - Dec 31, 1988||$68.00|
|Jan 1, 1989 - Apr 30, 1993||$66.00|
|May 1, 1993 - May 31, 1995||$75.00|
|June 1, 1995 - Apr 30, 1996||$81.00|
|May 1, 1996 - Apr 30, 1997||$88.00|
|May 1, 1997 - Dec 31, 1998||$96.00|
|If Contributions were made between Jan 1, 1984 and May 31, 1985||$18.60 is increased to $21.10|
Material Handlers and Sheeter Assistants
|Apprentice Level||Monthly Pension per Year of Credited Service|
|Third Year||$45.00 June 1, 1995 - Dec 31, 1998|
|Fourth Year / Material Handlers||$52.50 June 1, 1995 - Dec 31, 1998|
|Fifth Year||$60.00 June 1, 1995 - Dec 31, 1998|
|Sheeter Assistants||$60.00 June 1, 1995 - Dec 31, 1998|
$32.52 Monthly Pension per year of Credited Service, Jan 1, 1998 - Dec 31, 1998
Contributions earned on / after January 1, 1999
Due to the complexity of record keeping when there are five different Hourly Contribution Rates, all of which will likely change in the future, the formula for calculating Pensions was changed effective January 1, 1999, so that Monthly Pensions earned on/after that date are a percentage of those Contributions, expressed in the Plan's Normal Form of Pension, and assuming no reduction on account of a Member choosing to retire before being entitled to an unreduced Pension.
The amount of Pension are:
|Pension Contribution Earned||Annual Pension Earned|
|January 1, 1999 to April 30, 2001||25.51% of Contributions|
|May 1, 2001 to April 30, 2003||24.12% of Contributions|
|May 1, 2003 to April 30, 2004||23.00% of Contributions|
|May 1, 2004 to April 30, 2006||21.00% of Contributions|
|May 1, 2006 and thereafter||20.00% of Contributions|
The Administrator sends you a Pension Statement by June 30th of every year. Your Monthly Pension is shown on that Statement. The Pension on that Statement assumes you take your Pension at Age 63.
Ontario's Pension Law requires that your Spouse receive at least 60% of your Pension when you die.
We discussed how your Pension is calculated in How is my Pension calculated?. Now we discuss how and when your Pension is paid.
- If you are a Member in Good Standing of Local 30, you can retire any time at or after age 60 with a full Pension.
- If you are not a Member in Good Standing of Local 30 your monthly Pension is reduced by 1/2 of 1% for every month of retirement before your 63rd birthday.The Administrator will calculate your Monthly Pension for you. The Administrator will tell you if any reduction will apply to your Pension.
- If you are not a Member in Good Standing of Local 30, you can retire with a full Pension anytime after you turn 63.
FOR UNREDUCED EARLY RETIREMENTS PENSIONS COMMENCING ON OR BEFORE APRIL 1, 2009
In order to take advantage of the Unreduced Early Retirement Window, your completed Pension Application, including all supporting documentation must be received by the Plan administrator, or postmarked, no later than March 31, 2009. Your pension commencement date cannot be later than April 1, 2009. To be eligible for this benefit you must be an Active or Terminated Deferred Vested Pension Plan Member, who is a member in Good Standing, Sheet Metal Workers Local Union 30, and
1. is at least Age 60; or
2. is at least Age 56 and has been a Member in Good Standing, Local Union 30 and/or any other Local Union of the Sheet Metal Workers International Association for at least 30 years (in total, and not necessarily consecutive).
In February 2009, the Trustees announced that this benefit will be terminated and will not be available for pensions commencing after April 1, 2009.
FOR PENSIONS COMMENCING AFTER APRIL 1, 2009
You can retire at any time after you turn 53. Depending upon your age at retirement, your Pension might be reduced. This reduction takes into account that you will be receiving your Monthly Pension earlier.
|53 - 62||Reduced by 1/2% per month to age 63|
|63 or older||Full Pension|
The Administration Office will make any calculations for you. Just ask.
The Death Benefit from the Pension Plan will depend on whether you were retired when you die.
If you are not retired when you die:
- If you have a Spouse, she/he is entitled to receive the commuted value of your Pension earned to the date of your death. She/He may choose one of the following:
- Receive a lump sum payment, less income tax
- Transfer the amount to her/his RRSP
- Purchase an immediate or deferred annuity with a qualified financial institution.
- If you do not have a Spouse, your named beneficiary is entitled to receive the commuted value of your pension, payable in a lump sum, less income tax.
If you are retired when you die:
- The Death Benefit is the one you selected when you retired. If you chose a Pension that continued Beneifits to your Spouse, your Spouse will get her Benefit now.
- If you chose a Pension that guaranteed the minimum number of payments, the person you made your Beneficiary will get the rest of the payments if you die before the guaranteed number of payments were made.
- If you chose a Pension that was guaranteed only for your lifetime; no other payments are made after you die.
You can apply if you are a Member in Good Standing of Sheet Metal Workers Local 30. Your doctor must state that you are disabled and can't work at any occupation for wage or profit for the foreseeable future.
If your Application is approved, your Pension will start six months after your disability. You must apply within one year of the onset of your disability. Otherwise, your Pension will start after the administrator receives your Application.
What is a Spouse?
- To qualifty as a Spouse the person must be :
- Living with you on the date your Pension is to start, or your death if you haven't retired
- Person of the same or opposite sex
- One of the following:
- Is legally married to you or
- Has lived with you in a conjugal relationship for at least three years immediately before you retire, and whom you have held out publicly as your Spouse or partner, or
- The natural or adoptive parent of the same child
If you have a Spouse, Ontario Pension Law requires that certain Spousal Benefits be provided.
For example, your Spouse is entitled to receive at least 60% of your Retirement Pension if you die after retirement, or the Commuted Value of your earned Pension if you die before retirement.
Your Spouse is allowed to give up the right to Spousal Benefits. This has to be done in writing. Your Pension Plan has a special form for this available within the Application for Monthly Pension kit.
You must apply for your Pension using the Application to receive a Monthly Pension Form. You can print this Form at home or ask the Administrator to send one to you.You should start to plan for your retirement at least one year before you actually retire. The Administrator is available to help you with all of the Benefit calculations and paperwork that you need.
Before the Administration Office can process your Application, there are several things that are required of you, namely:
||1.||You must provide evidence of your Date of Birth. This is a photocopy of your Passport, Birth Certificate or Baptismal Certificate. If these are not obtainable, the Administrator may accept other evidence. See the Pension Booklet "Applying for Benefits".|
||2.||You must declare whether you have a Spouse at the time your Pension starts. Your Spouse has a legal right to receive at least 60% of your Monthly Pension, should you retire and die before your Spouse. More information is in the Pension Booklet.|
||3.||If you and your Spouse agree to waive your Spouse's right to receive a part of your Monthly Pension, the Application includes that Waiver, which must be received by the Administrator before your Monthly Pension starts.|
||4.||If you have a Spouse who has not waived her/his right to a Survivor Pension, the only Optional Form of Monthly Pension available to you is a 100% Surviving Spousal Pension which is explained in this Application. If you are choosing this Option , you must also provide evidence of your Spouse's Date of Birth.|
||5.||If you are applying for a Disability Pension, you must supply evidence, provided by your attending physician, regarding the nature and degree of your disability, as well as the information set out above respecting your Spouse and date(s) of birth. Disability Pensions are paid only to Members in Good Standing of Local Union 30.|
||6.||The Pension Plan offers several Options to you, depending upon whether you have a Spouse. Before submitting this Application, you should consider very carefully the manner in which you wish to receive your Pension. You are not permitted to change your Pension after the start of your Monthly Pension.|
||7.||Unless you provide another direction, your Pension will be paid to you, monthly in advance, by cheque mailed to the address you have provided on this Application. Pensions can be paid by Direct Deposit, such that they are transferred electronically on the first of every month to the Account you keep at a financial institution. To have funds transferred, you must complete the Form "Authorization for Direct Deposit" (available within the Application for Monthly Pension kit).|
||8.||This Application must be presented to an Officer of Local Union 30, for completion of the Certification section at the end of the Application. The Administrator cannot process your Application until the Certification section is completed.|
||9.||The Administration Office cannot calculate the amount of Monthly Pension due to you until your last Contributing Employer submits the Contribution Report covering the last month you worked. These Reports are due in the Administration Office by the 20th day of the calendar month following the last month you worked. If your last Employer is late in submitting that Contribution Report, the administrator will be equally delayed in processing your Monthly Pension.|
We recommend you start the paperwork for your retirement at least three months before your retirement date.
The Assets of the Pension Fund are invested by professional Investment Managers hired by the Trustees. These Managers invest in Canadian and Foreign Equities, Bonds, and Short Term Cash Securities such as Government of Canada Treasury Bills. Four times each year, the Trustees conduct a Special Pension Fund Investment Meeting. The Trustees monitor the results obtained by each Manager, as well as the Total Fund.