CAN I MAKE VOLUNTARY CONTRIBUTIONS?
CONTRIBUTIONS TO RRSPs
The contributions made on your behalf to the Local 46 Pension Plan count towards your own personal RRSPs. The maximum contribution that you can make to your RRSP for 2015 is the lesser of $24,930 and 18% of your earned income in 2014 minus the contributions made on your behalf to the Local 46 Pension Plan in 2014. Any unused RRSP contribution room can be carried forward.
You will be advised of the maximum amount you can contribute each year to your RRSP by the Canada Revenue Agency on the notice of assessment.
CAN THE PLAN BE CHANGED OR DISCONTINUED?
The Trustees can change the Plan at any time provided:
- The change does not contravene the provisions of any Collective Agreements that Local 46 is a party to.
- The change does not allow the use of any part of the Pension Fund other than for the exclusive use of persons who have, or who may, become entitled to benefits under the Plan and to cover expenses.
- The change is made in consultation with the actuary and does not affect the financial soundness of the Plan.
ARE PLAN BENEFITS GUARANTEED?
Plan benefits are NOT guaranteed. While the Trustees hope to continue to provide the current level of benefits to all active and retired members and their spouses, the Trustees necessarily reserve the right to amend and/or suspend any of the Plan benefits and/or to require higher contribution from members, should financial, regulatory or other conditions warrant such actions. For example, if the expected contributions to the Plan are not sufficient in any future year to meet the funding cost of the Plan under the minimum solvency, or other funding, regulations stipulated in the Ontario Pension Benefits Act, the provisions of the Plan will have to be amended. This could include a reduction in the accrued benefits (benefits earned to date), the elimination or amendment of the unreduced early retirement benefits prior to age 65 and/or the Supplementary Bridge Benefits, or a change in the normal form of pension by eliminating the continuation of any benefits payable on the death of the member after retirement.
The Plan may be discontinued under certain circumstances. If the Plan is discontinued, the Trustees will withhold consent for the payment of unreduced early retirement benefits prior to age 65 and for the payment of the Supplementary Bridge Benefits. Subject to the foregoing, all monies remaining in the Pension Fund on termination of the Plan will be applied in an equitable manner for the benefit of persons who have, or may, become entitled to benefits under the Pension Plan and for the expenses of wind-up and for no other purpose.
Every effort has been made to ensure that the booklet and this description reflects the terms and provisions of the Pension Plan. Full details may be found in the Plan Text, a copy of which may be obtained from the Benefits Office or the Trustees.
NOTICE OF ELECTION: SECTION 74, ONTARIO PENSION BENEFITS ACT (“ACT”)
The Trustees have elected to exclude the Plan and its Members from the operation of Section 74 of the Act effective June 26, 2013. Section 74 requires that on the wind up of a pension plan, or the termination of a Member’s employment by his employer on or after July 1, 2012 (except for reasons of wilful misconduct, disobedience or wilful neglect of duty) or for other prescribed events or circumstances, a Member in Ontario whose age plus years of continuous membership in the Plan equals at least 55 must be provided with certain additional benefit rights. This includes the right to receive an immediate unreduced pension or at a future date if membership had continued to that date (“Grow-In” rights). Note however, that these additional rights do not apply on the termination of a “construction employee” (as defined in Regulation 285/01 under the Ontario Employment Standards Act) or if the employee is on temporary lay-off (as defined in subsection 56 (2) of the Employment Standards Act).
The Local 46 Plan already states that the Trustees would withhold consent for unreduced and subsidized early retirement and supplementary bridge benefits on the wind-up of the Plan. Also an overwhelming majority of the Members in the Plan would be construction employees (as defined in Employment Standards Act) and the additional rights under Section 74 of the Act would therefore not apply. As such, the election under 74.1 (2) of the Act to exclude the Plan and its Members from the operation of Section 74 will have very little, if any, practical effect on the Plan or its Members, in terms of the benefits paid or payable if the Plan were to wind-up or on the termination of employment by a Member’s employer.
This notice is being provided to persons who are eligible, or are required to become, Members of the Local 46 Plan and are employed in Ontario, and is a requirement under Section 30.2 (6) of the Regulation 909 made pursuant to the Act.