Pension plans at other employers

Over the course of your working life, both you and your employer make contributions to your pension. Those funds are then invested, and upon retirement your pension is paid from those investments. Your pension is essentially forced saving on your part and deferred compensation on the part of your employer. With a target benefit pension, you will receive an annual income until your death, but the amount is not guaranteed. For more information on your target benefit pension plan, please contact your Human Resources Department or Pension Department.

Similar to a defined benefit pension plan, a target benefit pension plan provides an annual income until your death. However, target benefit pensions are more fluid and the risk associated with the plan’s investments falls, in part or completely, to employees and retirees. For example, should the pension fund not do well in the market, you may have to pay higher contributions or have your retirement income cut. This is just one of numerous things that could impact a target benefit pension.

In short, a target benefit pension basically operates the same way a defined benefit pension would, until something goes wrong. However, with a target benefit plan, like with a defined benefit plan, contributions are pooled together – so the pension fund is better prepared to weather short-term dips in the market than a defined contribution plan.

A target benefit pension is better than having no pension at all and relying on your personal savings because your employer does contribute over time. For more information on your target benefit pension plan, please contact your Human Resources Department (Or Pension Department).

The regular age to begin receiving CPP/QPP is 65. If you choose, you can start receiving CPP/QPP at the age of 60 even if you are still working. But taking CPP/QPP early will decrease the payments you receive from the plan for the rest of your life. It is important to know that you will still be paying for CPP/QPP as long as you are working, and the calculations for your payments will be made based on the time you start receiving CPP/QPP. You can contact Service Canada to get more information on all the options available to you.

Where you live determines whether you will receive CPP or QPP. If you live in Quebec, you will receive QPP. If you live anywhere else in Canada, you will receive CPP. Both plans are coordinated, so even if you lived in Quebec for most of your career but then choose to retire in British Columbia, your CPP will account for your contributions to QPP over the course of your career.

Like your workplace pension plan, you pay into CPP/QPP, so you will receive it no matter the amount of your retirement income. Old Age Security (OAS) is tied to your income, so that benefit may be reduced depending on your income. You can contact Service Canada to get more information on CPP/QPP and OAS.

Over the course of your working life, both you and your employer make contributions to your pension. A defined contribution plan has fixed contributions from you and the employer.

Those funds are then invested and these investments are based on your choices within the portfolio of options provided to you by the plan. The amount you receive at retirement will depend on how those investments do in the market. Upon your retirement you are granted access to that pension and must decide how your pension will be paid to you, often by purchasing an annuity.

Your pension is essentially forced saving on your part and deferred compensation on the part of your employer. For more information on your defined contribution pension plan, please contact your Human Resources Department or pension department.

Your defined contribution pension plan will have different investment options (stocks, mutual funds, etc.), usually with varying degrees of risk and projected rates of return. As a contributor to the plan, you create your own investment portfolio based on these options. Most financial advisors will recommend choosing higher risk investments when you are further from retirement, and moving to lower risk investments as you get closer to retirement. Regardless, it is very important that you consider your personal risk tolerance and how each fund is managed to make a decision that is right for you. You can contact your Human Resources Department or Pension Department for any questions related to your pension and the management of your investments. You can also consult a personal financial advisor if you need any additional guidance with your investments. Due to confidentiality, it is important to note that the union does not have access to your personal information needed to calculate your pension.

The regular age to begin receiving CPP/QPP is 65. If you choose, you can start receiving CPP/QPP at the age of 60 even if you are still working – but taking CPP/QPP early will decrease the payments you receive from the plan for the rest of your life. It is important to know that you will still be paying for CPP/QPP as long as you are working, and the calculations for your payments will be made based on the time you start receiving CPP/QPP. You can contact Service Canada to get more information on all the options available to you.

Where you live determines whether you will receive CPP or QPP. If you live in Quebec, you will receive QPP. If you live anywhere else in Canada, you will receive CPP. Both plans are coordinated – so even if you lived in Quebec for most of your career but then choose to retire in British Columbia, your CPP will account for your contributions to QPP over the course of your career.

Like your workplace pension plan, you pay into CPP/QPP, so you will receive it no matter the amount of your retirement income. Old Age Security (OAS) is tied to your income, so that benefit may be reduced depending on your income. You can contact Service Canada to get more information on CPP/QPP and OAS.

Before you plan on retiring, you should always contact your Human Resources Department or Pension Department to get the steps required to retire and receive a pension estimate. Due to confidentiality, it is important to note that the union does not have access to your personal information needed to calculate your pension.

 Most DB plans provide an annual pension statement to plan members. This might be distributed electronically or via mail, and provides information about your pension personalized to you. Some pension plans even allow you to check your information in real time through a web portal. If you are interested in receiving a pension statement or finding out more, contact your Human Resources or Pension Department. Due to confidentiality, it is important to note that the union does not have access to your personal information needed to calculate your pension.

Depending on your employer and pension plan, the age of retirement may be different. You can request this information from your Human Resources Department or Pension Department.

Some members want to phase into retirement by reducing their work hours as they get closer to their retirement date by choosing to work part-time. As reducing your hours will reduce your annual salary, there may be an impact to your pension. However the impact, if any, will vary greatly from person to person. You should always contact the Human Resources Department or Pension Department and obtain accurate information for all the scenarios you are considering.

Many defined benefit plans are indexed. Indexing is the annual cost of living adjustment, based on the official Consumer Price Index (CPI), which is an objective, commonly used calculation. Without indexing, pensioners would fall behind in their purchasing power. Indexing keeps your pension up with the rate of inflation, meaning your pension retains its value over time. We recommend that you contact your Human Resources Department or Pension Department to confirm if and how your plan is indexed.

Many defined benefit plans are indexed. Indexing is the annual cost of living adjustment, based on the official Consumer Price Index (CPI), which is an objective, commonly used calculation. Without indexing, pensioners would fall behind in their purchasing power. Indexing keeps your pension up with the rate of inflation, meaning your pension retains its value over time. We recommend that you contact your Human Resources Department or Pension Department to confirm if and how your plan is indexed.

In the event that you leave your job prior to retirement, you may have the option of taking the “commuted value” (essentially the current value) of your pension out of your defined benefit plan. If you decide to take the commuted value, you can invest that money into another retirement savings vehicle. But in taking the “commuted value” out of your defined benefit plan and investing it yourself, you are assuming all of the risk associated with that investment, whereas your employer takes on the risk within the pension plan. You can also withdraw it as cash, but it will be taxed as income. While the choice to withdraw the commuted value is yours to make, it almost never makes good financial sense over other options. If you are considering withdrawing the commuted value, we strongly recommend you consult with multiple financial advisors before making a decision. If you need assistance in understanding how your “commuted value” has been calculated, you can contact our team at pensionsbenefits@pipsc.ca.

This is based on your individual situation and depends on your marital status among other factors. Almost all defined benefit plans also include a benefit guarantee. This means if you pass away before retirement or within a certain number of years of retirement, an amount is paid to your estate. You should contact your Human Resources Department or Pension Department for the provisions specific to your pension and ensure that your marital status and beneficiary information is always up to date.

The regular age to begin receiving CPP/QPP is 65. If you choose, you can start receiving CPP/QPP at the age of 60 even if you are still working. But taking CPP/QPP early will decrease the payments you receive from the plan for the rest of your life. It is important to know that you will still be paying for CPP/QPP as long as you are working, and the calculations for your payments will be made based on the time you start receiving CPP/QPP. You can contact Service Canada to get more information on all the options available to you.

Where you live determines whether you will receive CPP or QPP. If you live in Quebec, you will receive QPP. If you live anywhere else in Canada, you will receive CPP. Both plans are coordinated, so even if you lived in Quebec for most of your career but then choose to retire in British Columbia, your CPP will account for your contributions to QPP over the course of your career.

Like your workplace pension plan, you pay into CPP/QPP, so you will receive it no matter the amount of your retirement income. Old Age Security (OAS) is tied to your income, so that benefit may be reduced depending on your income. You can contact Service Canada to get more information on CPP/QPP and OAS.

A defined benefit pension provides a guaranteed annual income at retirement. This is the best type of pension. The employer must ensure the plan is able to pay you and takes on the risk created by investment and market fluctuations. While a target benefit pension pays you an annual income at retirement, it is not guaranteed. For example, if the pension fund does not do well in the market, you may have to pay higher contributions or have your retirement income cut. This is just one of numerous things that could impact a target benefit pension.