The normal retirement date is the first day of the calendar month coincident with or next following the date on which the member attains age 65.
Approximately two months prior to the normal retirement date, the Pension Fund Administration sends a letter to the member (to the current mailing address on file) informing them to call our Pension Fund Call Centre for further instructions.
The Normal Form of Pension Benefit
The normal form of pension for a member who does not have a spouse on the date on which pension payments commence is an annuity payable in equal monthly instalments for the life of the member and in any event for a period of not less than 60 months. If the member dies before receiving 60 monthly payments, his beneficiary is entitled to receive the value of the remaining balance of the 60 payments in a lump sum. If the member dies after receiving 60 monthly payments, the last payment shall be the payment for the month in which the member's death occurs.
The normal form of pension for a member who has a spouse on the date on which pension payments commence is an annuity payable in equal monthly instalments for the life of the member and in any event for a period of not less than 180 months. If the member dies before receiving 180 monthly payments, his beneficiary is entitled to receive the value of the remaining balance of the 180 payments in a lump sum. If the member dies after receiving 180 monthly payments, the last payment shall be the payment for the month in which the member's death occurs.
Options if married at time of retirement
- Joint Life reducing to 2/3 on Death of Member: Your spouse will receive a life pension of 2/3 on death of member, guaranteed for 5 yrs (first 60 payments will be paid in any event).
- Joint Life with no Reduction on Death of Member: Your spouse will receive a life pension with no reduction on death of member, guaranteed for 5 yrs (first 60 payments will be paid in any event).
- Joint & Last Survivor Reducing to 80%: The surviving spouse will receive a life pension of 80%, guaranteed for 5 yrs (first 60 payments will be paid in any event).
Direct deposits of pension payments into bank accounts will be arranged. Direct deposits take place on the 8th of the month.
Out of Country Residents
Pension cheques are in Canadian funds only. Direct deposits can only be deposited in Canadian bank accounts.
The pension benefit is taxed at source for all out-of-country residents, as per CRA regulations. To appeal the percentage of tax, a non-resident Fund member can obtain an NR5 from the CRA website and send the completed form directly to the CRA. CRA will notify us directly if any change is to be made.
You may retire as early as age 55, provided you are vested. Should you retire prior to age 65, your pension will be reduced by ½ of 1% for each month by which the date of retirement precedes your Normal Retirement Date.
To initiate early retirement, please contact The Pension Fund Call Centre.
A member may elect to continue as an active contributing member past age 65. However, the postponed retirement date shall be no later than the December 1st in the calendar year in which the member attains or will attain age 71, or such other date permitted under the Income Tax Act and the applicable provincial pension benefits legislation.
Choosing this option, it becomes the member’s responsibility to contact the Pension Fund Call Centre in order to initiate the start of their pension benefit.
Members whose continuous service terminates before the normal retirement date as a result of total or permanent disability may be eligible for a Disability Pension.
Total and permanent disability: A physical or mental impairment which prevents a member from engaging in any employment for which he/she is reasonably suited by virtue of his/her education, training or experience and that can reasonably be expected to continue for the remainder of the member’s lifetime and which is determined by the employer to exist, based on a written report of a medical doctor licensed to practice in Canada or where the member resides.
If a member believes he/she qualifies for a disability pension, they should contact The Pension Fund Call Centre.
If a Fund Member dies prior to retirement
If a member dies with an eligible spouse living at their death, the spouse would be entitled to receive a pension, payable for lifetime, equal to ⅔ of the pension earned to the date of death.
If a member dies and does not have an eligible spouse living at their date of death, but does have children under the age of 19, the children will receive a pension equal to ⅓ of the pension earned to the date of death. Payment will cease when the youngest child turns 19.
If there is no eligible spouse or children living at the date of death, benefits will be paid to the beneficiary or estate, as the case may be, in a lump sum.