Local 1541 believes that all workers should retire with dignity, security, and enjoy their golden years. As part of your negotiated wage package, an employer paid pension plan is established to accomplish this goal.
FLOORLAYERS’ INDUSTRY PENSION PLAN
Basic Information Booklet
Updated: January 1, 2016
The purpose of this document is to bring to your attention the rules of the Pension Plan you need to know in order to understand your entitlement to a pension and the other benefits of the Plan.
This text contains a non-technical description of the most important features of the Floorlayers’ Industry Pension Plan, which is designed to provide retirement and other benefits for the participants.
The Plan became effective on April 1, 1972, through collective agreement negotiations. A plan year commences January 1 and ends December 31 in the same calendar year. The Plan meets all requirements for continued registration under the Income Tax Act of Canada.
The Plan is administered in the Union office by Ken Podgornik and is supervised by five Trustees, all members of the Floorlayers Local Union 1541. The Plan Administrator has the responsibility for the day-to-day administration of the Plan in all its details, including the maintenance of membership and service records, the collection of contributions and the processing of pensions and other benefits.
The Pension Fund is established on a sound basis. Its continued ability to provide the benefits promised by the Plan are checked by a Consulting Actuary and reviewed at least once every 3 years. The present Consulting Actuary is Brandon Ellement of Ellement Pensions Benefits Investments.
All employer contributions and investment income is deposited with Vancouver City Savings Credit Union and various financial institutions and Trust Companies, held and invested by the Trustees. Current investments include government guaranteed bonds, first mortgages, equities and term deposits. All investments meet the requirements of the Pension Benefits Standards Act.
An independent firm of chartered accountants audits a full accounting of all the assets, investments and transactions of the Plan annually. The present auditors are Meyers Norris Penny LLP.
You automatically became a member of the Plan on April 1, 1972 if on that date you were employed by a firm under agreement to the Union and contributing hours on your behalf to the Floorlayers’ Welfare Trust Fund.
If you joined the union at a later date your membership in the Plan automatically began when the first hour of contributions was received by the Plan from a contributing Employer.
The member does not contribute anything. Each participating employer remits contributions on the basis of hours worked by all employees in any job classification coming within the scope of the Collective Agreement. All employees hired are reported each month regardless of how many or how few hours are worked. These contributions together with investment earnings pay for all the pension benefits and administration costs of the Plan.
The amount of pension earned by a member is determined by credited service. Credited service falls into two categories known as Credited Past Service and Credited Current Service.
Credited Past Service is based on continuous membership in the Union prior to April 1, 1972. The maximum amount of past service granted is 30 years. No past service prior to January 1, 1942 was counted.
Credited Current Service is based on the number of hours remitted by the employer on behalf of the member, as required under the terms of the Collective Agreement.
AMOUNT OF PENSION
Members who participate in the Pension Plan earn or accrue pension benefits. The accrued benefit is the benefit that a plan member has earned to a particular point in time. The amount of pension earned is the total of a member’s credited past service plus the amount of credited current service based on the money value of the hours contributed by the employer on behalf of the member.
Each following year the dollar value of the previous year’s hours will be added to the credited current service and a new accrued total will be calculated.
Current Members are mailed a statement each year informing them of the total amount of accrued pension benefit.
Members should keep an account of all the hours they work and check to see that their total hours worked balances with the statement. If the employer fails to report your hours or an error is made in the number of hours reported, it can seriously affect the amount of credited current service and the amount of pension you will receive on retirement.
VESTING AND MEMBERSHIP TERMINATION
Vesting is a term used to indicate the right of a member’s entitlement to a pension. It means you have the legal right to receive your accrued benefits at retirement. Vested rights are nonforfeitable. Vested members will receive their pension on retirement even if they had previously left the industry and had dropped membership in the Union.
Your plan membership is terminated at the end of two consecutive calendar years in which you have worked a combined total of less than 350 hours.
ENTITLEMENT TO A PENSION
There are several circumstances by which a member is entitled to a pension.
1. NORMAL RETIREMENT: The normal retirement age at present is 65. Active members are entitled to a normal retirement pension if they retire from the industry at the end of the month they attain the age of 65.
2. POSTPONED RETIREMENT: A member is not required to retire at age 65. A member may continue to work and accumulate credited current service until age 69. After the age of 65, members can make application to commence pension payments by giving one month’s notice that they are retiring from the industry. The commencement of the pension shall not be deferred beyond the end of the month preceding the member’s 69th birthday.
3. EARLY RETIREMENT ON ACCOUNT OF TOTAL AND PERMANENT DISABILITY: Members who become totally and permanently disabled while employed by an employer who is required to contribute to the Plan on his behalf, and is thereby prevented from continuing employment with that employer, may elect to retire and apply for a disability pension equal to the full pension accrued to his actual retirement date and based on his credited service to that date. Total and permanently disabled means that the individual is suffering from a physical or mental impairment that prevents him from engaging in any employment for which he is reasonably suited by virtue of his education, training or experience, and that can reasonably be expected to last for the remainder of his lifetime. The test for determining total and permanent disability is the member’s eligibility for a Canada Pension Plan Disability Pension, and a doctor’s certificate. For further information please call the office.
APPLICATION FOR PENSION
When members plan to retire, they must complete a written application for pension on a form supplied by the Plan Administrator. A member must also supply proof of age. The earliest date the pension will be paid to an eligible member is during the month following the month in which proper application is made. Benefits are paid monthly. It is standard procedure that when eligible members approach normal retirement age, they contact the Administrator. Options are explained and the application is made. When a member plans to continue to work, the pension is deferred until the time chosen to retire from the industry.
NORMAL FORM & OPTIONAL FORMS OF PENSION BENEFITS
Your annual accrued pension benefit reported on your annual statement is the Normal Form of Pension Benefit. The Normal Form of Pension Benefit is payable for your lifetime but guaranteed for 5 years. See the explanation below for Life Pension – Guaranteed 5 years.
The Optional Forms of benefit available to choose from depend on whether or not you have a spouse at retirement.
1. Life Pension: This pension is payable only as long as you live. Your monthly cheque will stop at your death.
2. Life Pension – Guaranteed 5 Years: This pension is payable as long as you live and in addition if you should die within 5 years after the pension starts, the same pension will continue to your beneficiary for the balance of the five year period.
3. Life Pension – Guaranteed 10 Years: Same as number 2 except the guaranteed period is 10 years.
4. Joint and Survivorship Pension Reducing to 60%: Payable for your lifetime. Upon your death, monthly pension continues for your spouse at 60% of the initial amount for life.
5. Joint and Survivorship Continuing at 100%: Payable for your lifetime. Upon your death monthly pensions continue for your spouse at 100% of the initial amount for life.
All optional pension calculations will be done on an actuarial basis.
The Pension Benefits Standards Act states that where a member has a spouse the pension must be a joint pension continuing to the spouse on his/her death at not less than 60% of the initial amount. Thus either of options 4 and 5 would be acceptable.
Your spouse however can waive such pension by completing a waiver form prescribed under that Act, in which case you can elect your pension under options 1, 2, or 3 above.
“Spouse” means, in relation to another person,
(a) A person who at the relevant time was married to that other person, and not living separate and apart from, that other person for the 2 year period immediately preceding the relevant time, or
- If paragraph (a) does not apply,
A person who was living and cohabiting with the other person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender, and who had been living and cohabiting in that relationship for a period of at least 2 years immediately preceding the relevant time.
Subject to the above comments regarding the mandatory joint pension form, you may change your election of an optional settlement at any time before it becomes effective. It cannot be changed once the pension payments commence.
DEATH BEFORE THE COMMENCEMENT OF PENSION
If a current member dies before the commencement of pension, their validly designated beneficiary, or otherwise their estate, shall receive the commuted value of the member’s total monthly pension provided the member was vested. Should the member have a spouse, as per definition of spouse, then the spouse will be the beneficiary.
1. Name a spouse/beneficiary on a form supplied by the Administrator. If there is no spouse, a member can revoke or change the beneficiary designation at any time.
2. Be sure the Administrator has your correct address.
3. Keep a record of hours worked in order to ensure that the annual pension statement is correct.
The most important facts you need to know about the Plan have been explained in simple language as clearly as possible. The various requirements and the actual detailed administration are dealt with and governed by the Plan text of the Floorlayers’ Industry Pension Plan. The Plan text of the Floorlayers’ Industry Pension Plan is on file in the Administrator’s office.
Under Section 10(4) and (5) of the Pensions Benefits Standards Act you, your spouse, or your designated beneficiary or agent have the right to examine the plan text and certain other prescribed documents.
If you have any questions please contact the Administration Office:
#200-580 Ebury Place,
Delta, B.C. Canada
Email: [email protected]
PLAN YOUR RETIREMENT – “KNOW YOUR PLAN”
Words importing the masculine gender shall include the feminine, and words importing the singular shall include the plural and vice versa.