How Much Does the Employer Contribute?
The Employer contributes according to the terms of the Collective Agreement. As of May 1, 2015, the contribution rate was $7.80 per hour earned. Contributions paid on behalf of Dependent Contractors are a percentage of gross earnings equivalent to the hourly rate in effect for journeymen.
Please note that with effect from January 1996, pension contributions on behalf of apprentices have been a percentage of the standard journeyman’s hourly pension rate and reflects the applicable apprenticeship year.
There is a maximum contribution that can be made to the Low Rise Pension Plan on your behalf which changes every year according to Government rules.
Will I Receive Credit for Employer Contributions if I Work Outside the Jurisdiction of the Collective Agreement?
It depends on whether that jurisdiction has a collective agreement that requires contributions to a pension plan. If it does,contributions will be remitted on your behalf to the Low Rise Pension Plan at the rate set out in that agreement, assuming there is a reciprocal agreement between the two plans. (This would also be the case if you worked in the ICI/High Rise sectors within Local 46). If the collective agreement does not require contributions to a pension plan, or there is no reciprocal agreement, no contributions will be remitted on your behalf to the Low Rise Pension Plan.
What Happens to Employer Contributions Made on My Behalf?
A notional account is set up in the Low Rise Pension Plan in your name. Employer contributions made on your behalf are credited to your account. Contributions are invested and the net investment earnings (or losses), after deducting the expenses associated with operating and maintaining the Low Rise Pension Plan, are also allocated to your account. The pension fund is invested by professional investment managers who are appointed by the Trustees. The investments will tend to be balanced among bonds, stocks, commercial mortgages, money market instruments, etc. with a focus on long term growth. Individual bonds or stocks will not be allocated to your account. Instead, an amount representing your proportionate share of the entire fund is allocated to your account.
When do Employer Contributions Belong to Me?
Employer contributions become vested (belong to you) as soon as they are made by your Employer and received by the Plan. You must be, or have been, a member of Local 46 Low Rise Residential Division at the time the contributions are earned to be entitled to those contributions.
When May I Withdraw Employer Contributions and Earnings?
You may not withdraw any Employer contributions as long as you continue to be a member of the Low Rise Pension Plan. Benefits are payable under the Low Rise Pension Plan only on death, termination of Plan membership, disability, retirement or on Plan wind-up.
Do Employer Contributions Affect My Contributions to an RRSP?
You can contribute up to 18% of your earned income in the previous year up to a maximum limit, less Employer contributions made to the Low Rise Pension Plan on your behalf in the previous year.
You will be advised of the maximum amount you can contrbiute each year to your RRSP by Canada Revenue Agency, on the Notice of Assessment