RETIREMENT PLAN
FOR
NON-TEACHING EMPLOYEES OF
THE ST. JAMES-ASSINIBOIA
SCHOOL DIVISION
- Introduction
The following information is about the Retirement Plan for Non-Teaching Employees of the St. James-Assiniboia School Division (the Plan) as it stands on February 23, 2006
(a)a description of the benefits to which you, your spouse, dependent child/children, beneficiary or estate may be entitled,
(b)the rules covering eligibility for benefits, and
(c)the procedures which should be followed in applying for benefits
These benefits are in addition to the benefits provided by the Canada Pension Plan and Old Age Security.
This is a summary only. Should there be any conflict between the wording used here and the wording used in the Plan Text, the latter shall apply.
Retirement Plan Committee Members
As of February 23, 2006, the Retirement Plan Committee Members are:
Ron Marshall…………………………..Trustee
Bruce Chegus………………………….Trustee
Bonnie Brown…………………………M.A.N.T.E. Representative
Randy Palmer………………………….C.U.P.E. Representative
Mike Friesen…………………………...Secretary-Treasurer
Cindy Labaty…………………………...Manager, Human Resources (non-voting)
- Eligibility and Membership
- Who is eligible to become a member of the Plan?
Each person who is employed in a position which is not covered in the contract with the Manitoba Teachers’ Society, and who is not contributing to the Teachers’ Retirement Allowances Fund or who was a contributor to a previous Plan on December 31, 1977
- When do I become a member of the Plan if I am employed full time?
The first day of the month following the completion of 6 months of service.
- When must I become a member of the Plan if I am employed part time?
The first day of the month following the completion of 2 consecutive calendar years in which your earnings from the School Division have been at least ¼ of the Year’s Maximum Pensionable Earnings under the Canada Pension Plan (Y.M.P.E.)
In 2006, ¼ of the Y.M.P.E. is $10,525.
- If I am employed part time, can I become a member of the Plan before I am required to join?
Yes. You can join on a voluntary basis on the first day of the month following the completion of 6 months of service.
- What happens when I become a member of the Plan?
You will be asked to complete and sign an application for membership.
- Can I withdraw from the Plan while I am employed by the School Division?
No.
III. Contributions
- How much do I contribute to the Plan?
You are required to contribute by payroll deduction:
From January 1st, 2006, up to and including June 30, 2006, the contribution rates are as follows:
-4.9% of your earnings up to the Year’s Maximum Pensionable Earnings under the Canada Pension Plan (Y.M.P.E.), and
-6.5% of the portion of your earnings, if any, which exceed the (Y.M.P.E.)
From July 1st, 2006 and thereafter, the contribution rates are as follows:
-5.7% of your earnings up to the Year’s Maximum Pensionable Earnings under the Canada Pension Plan (Y.M.P.E.), and
-7.3% of the portion of your earnings, if any, which exceed the Y.M.P.E.
For example: Consider 2 full-time employees, one earning $15,000 and the other earning $50,000. For 2006, their contributions would be:
From January 1st up to and including June 30, 2006:
Employee #1 Employee #2
$15,000 $50,000
-4.9% of earnings up to
$42,100 (2006 Y.M.P.E.) $364.48 $1,022.97
PLUS
- 6.5% of earnings above $42,100 0.00 254.64
Total contributions up to June 30, 2006$364.48 $1,277.61
From July 1st, 2006 and thereafter:
Employee #1 Employee#2
$15,000 $50,000
-5.7% of earnings up to $42,100
(2006 Y.M.P.E.)$431.01 $1209.71
PLUS
- 7.3% of earnings above $42,1000.00290.72
Total contributions from July 1, 2006$431.01$1500.43
Total contributions for 2006:
Employee #1Employee #2
$15,000$50,000
-Earnings up to$42,100 (2006
Y.M.P.E.) $795.49 $2,232.68
PLUS
- Earnings above $42,000 0.00 545.36
Total contributions for 2006 $795.49 $2,778.04
- Does the School Division contribute to the Plan?
Yes, it matches the employee’s contributions.
- What happens to the contributions?
Your contributions and the contributions made by the School Division are deposited in the Plan’s fund. The fund is invested. The contributions and the investment income are used to provide benefits to eligible members of the Plan.
- Where are the monies in the Fund invested?
In bonds, mortgages, guaranteed investment certificates, short-term notes, Canadian equities, U.S. equities, International equities, and real estate, or funds established for registered pension plans by leading financial institutions. Assets are allocated and invested in accordance with the legislative requirements as set out in the Statement of Investment Policies and Procedures approved by the Retirement Committee.
- Can I make additional contributions to the Plan?
Yes, up to the maximum amount permitted under the Income Tax Act.
- How are my additional contributions used?
These contributions, with interest, are used to provide additional benefits to you at retirement or termination of employment, or to your spouse, dependent child/children, designated beneficiary or estate as a result of your death.
- Does the School Board match my additional contributions?
No.
- Can I contribute to the Plan while on a disability leave of absence?
Yes, if you are in receipt of income as a result of total disability or like benefits under a group insurance policy sponsored by the School Division. Contributions are made at the rates described in No. 1, and are based on the income you receive from the group insurance plan. The School Board will match your contributions.
- Retirement Dates
1. What is my normal retirement date?
December 1 of the year in which you attain age 69, if you attain age 69 after December 31, 1996.
2. What is the earliest date I can retire and begin to be paid my pension?
You may retire on the first day if any month prior to your normal retirement date provided you are:
(a)age 55 or older and have completed at least 10 years of service, or
(b)age 65 or older and have completed at least one year of service.
- Retirement Benefits
1. How is my annual pension calculated?
For each year of contributory service:
-up to May 1, 1960, 1.5% of the average of your 6 years of highest earnings, plus
-from may 1, 1960 up to January 1, 1966, 2.0% of the average of your 6 years of highest earnings, plus
-on and after January 1, 1966, 1.4% of the average of your 6 highest Canada Pension Plan earnings, and 2.0% of the average of your 6 years of highest earnings, if any, which are in excess of the Canada Pension Plan earnings.
The average of your 6 years of highest earnings is calculated by selecting the 6 years in which your earnings are the highest from your last 12 years of service.
2. Is my pension reduced if I retire at:
(a) age 55 or older and my age plus years of service total 80 or more,
(b) age 60 or older and I have completed at least 10 years of service,
(c) age 65 or older and I have completed at least one year of service, or
(d) age 69?
No.
3. Is my pension reduced if I retire between the ages of 55 and 60 and I have completed at least 10 years of service and the sum of my age plus years of service is less than 80? What is the reduction?
Yes. Your pension is reduced by 1/8 of 1% for each month (1 1/2% per year) that your retirement date precedes your 60th birthday or the date that your age plus of service would have totaled 80, if earlier. An additional reduction may be applied to the pension you accrued after January 1, 1992 to reflect the minimum early retirement reduction under the Income Tax Act (Canada). However, a bridge benefit has been instituted to offset the effect of this reduction.
FOR EXAMPLE: Consider 3 employees who retire at age 55, one with 10 years of service, the second with 15 years of service, and the third with 20 years of service.
The pension reduction for Employee #1, with 10 years of service is equal to 7 ½% (1/8 of 1% x 60 months to age 60).
The pension reduction for Employee #2, with 15 years of service, is equal to 7 ½% (1/8 of 1% x 60 months to age 60 or age plus years of service totaling 80).
The pension reduction for Employee #3, with 20 years of service, is equal to 3 ¾% (1/8 of 1% x 30 months to age plus years of service totaling 80).
4. How do I apply for a pension?
You must indicate your intention on a form which many be obtained from the Manager of Human Resources. FOR MORE INFORMATION, WRITE OR CALL THE ADMINISTRATOR AT 954-7300.
VI. Payment of Pension
1.In what form is my pension paid?
Your pension is paid in either the normal form or an optional form.
2.What is the normal form of pension?
A pension payable for your lifetime or for 5 years, whichever is the longer period.
3. What is an optional form of pension?
An optional form of pension is a pension which you may choose instead of the normal form of pension. This pension has the same value as the normal form of pension.
4.How is my choice of pension restricted if I have a spouse when I retire?
Pension legislation requires that you choose a form of pension payment providing at least 2/3 of your monthly pension to your spouse after your death, unless both you and your spouse agree, in writing, to do otherwise.
5.If I do not have a spouse, can I choose an optional form of pension?
Yes, except for one of the optional forms which provides a benefit to a surviving spouse.
6. What optional forms of pension can be chosen?
You may choose one of the following forms of pension:
(a) a pension payable for your lifetime
(b)a pension payable for your lifetime or for 10 years, whichever is the
longer period
(c)a pension payable for your lifetime or for 15 years, whichever is
the longer period, or
(d)a pension payable for your lifetime. On your death, a pension of the same or a reduced amount is payable to your spouse for his/her remaining lifetime.
7. Can I change the form of pension I have chosen?
Yes, provided you do so before your first pension payment has been made.
8.When will my pension be paid?
Your pension payments are made on the last day of each month.
9.Will my pension be increased after I retire?
It may increase from time to time, but only as determined by the
Retirement Plan Committee.
VII.Beneficiary
1. Can I designate a beneficiary?
Yes.
2.Who can I designate as my beneficiary?
Any person or your estate.
However, if you have a spouse, any benefits which become payable on your death
are paid to your spouse. The payment of benefits to your spouse is not affected by
your failure to designate your spouse as beneficiary.
3.Who qualifies as my spouse?
Your spouse is a person who, on the earliest of, the date your pension commences, your date of death, or the date of your marriage breakup, is married to you or cohabited with you in a conjugal relationship.
A common-law relationship exists when a person who, not being married to you, cohabited with you in a conjugal relationship for a period of at least:
(a)3 years, if either of you is married, or
(b)one year, if neither of you is married.
4. How do I designate my beneficiary?
You must complete the appropriate form which is available from the
Manager of Human Resources.
5.What happens if I do not designate a beneficiary?
If you do not have a spouse, any benefit which becomes payable on your death will be paid to your estate.
6.If I die prior to retirement, will benefits be paid to my beneficiary?
Yes, if not required to be paid to your spouse or dependent child/children.
7.What happens if my spouse or beneficiary, whichever is applicable,
dies before I do?
If no other beneficiary is designated, any benefits which become payable on your death will be paid to your estate, if not required to be paid to your dependent child/children.
8.What happened if my spouse or beneficiary, whichever is applicable,
dies after I do?
Any benefits that would have become payable to your spouse or beneficiary will be paid to that person’s beneficiary or estate.
VII. Disability Retirement
1. How do I know if I am eligible to receive a disability pension?
You are eligible if:
(a)on the date application is made, you are totally and
permanently disabled,
(b)you have completed at least 5 years of service,
(c)you have not reached age 69,
(d)you have submitted a completed application and such information as
may be required by the Retirement Plan Committee, and
(e)the Retirement Plan Committee approves your application.
2.When does my disability pension commence?
On the later of the dates you have:
(a)exhausted your sick leave credits, or
(b)been disabled for at least 6 months.
3.How much disability pension will I receive?
You will receive the pension you accrued up to the date you became disabled.
4.In what form is my disability pension paid?
Your pension is paid either the normal form or an optional form (See Section VI. Payment of Pension).
5.Is my disability pension affected by any disability benefits I receive from the Canada Pension Plan?
No.
6.Will my disability pension be reduced if I am receiving a benefit under
the Workers’ Compensation Act?
Yes.
7.What happens if I die while receiving a disability pension?
Your pension will continue to be paid to your spouse, beneficiary or estate in the form of pension you have chosen.
IX.Termination Before Retirement
1. Am I entitled to a benefit if my service with the School Division terminates
before I retire?
Yes.
2.If my service terminates, are any of my required contributions locked-in?
No.
3.If my service terminates, are nay of my additional contributions locked-in?
No.
4.What benefit will I be entitled to if I have completed less than 2 years of service?
You will receive a lump-sum payment equal to your required contributions, with interest, and the accumulated value of your additional contributions, if any.
- What benefit will I be entitled to if I have completed at least 2 years of service?
(a)In respect of those contributions that are not locked-in, you may choose either a lump-sum payment equal to those contributions with interest, or a deferred pension equal to the pension which you had accrued.
(b)In respect of those contributions that are locked-in, you will be entitled to a deferred pension equal to the pension which you had accrued.
6.If I am entitled to a deferred pension, when can this pension commence? What may affect the amount of pension I receive?
Between age 55 and age 69, provided you have met the applicable service requirements (See Section IV. Retirement Dates). The amount of your pension may be affected by your age and years of service on the date your pension commences.
7.Can the value of my deferred pension be transferred out of the Plan?
Yes. The value of your deferred pension can be transferred to another registered pension plan or to a locked-in retirement account.
8.Can any lump-sum payment to which I am entitled be transferred out of the Plan?
Yes. Your lump-sum payment can be transferred to another registered pension plan or to a registered retirement savings plan.
X. Death Prior to Retirement
1.Will a benefit be paid if I die prior to retirement?
Yes.
2. What is the benefit if, on the date of my death, I have completed less than 2 years of service?
Your designated beneficiary or estate will receive a lump-sum payment equal to your
required contributions, with interest, and the accumulated value of your additional contributions, if any.
3. What is the benefit if, on the date of my death, I have completed at least 2 years of service?
Your spouse will receive a pension payable for life. The pension will be 50% of the pension you accrued up to your date of death. This amount will include the pension which can be provided by the accumulated value of your additional contributions, if any.
If you do not leave a spouse, but leave dependent child/children, the pension that would have been paid to your spouse will be paid to your children for as long as they continue to be dependent.
If you do not have a spouse or dependent child/children, your designated beneficiary or estate will receive a lump-sum payment equal to your contributions, with interest.
4. Can the value of my spouse’s pension be transferred out of the Plan?
Yes. The value of your spouse’s pension can be transferred to another registered pension plan, a locked-in retirement account, or a life income fund.
5.What if the pension payments to my spouse or dependent child/children cease before the payments are at least equal to the sum of:
(a)my required contributions with interest at the date I died, and
(b)the accumulated value of any additional contributions I have made, if the amount provided by such contributions was included in such payments?
The unpaid balance of this amount will be paid to the person last receiving such payments if the payments ceased because the person ceased to be dependent or, to the beneficiary or estate of such person if the payments ceased because the person died.
XIComparison of Contributions and Benefits
1.When are my contributions and benefits compared?
On the date you or your spouse, dependent child/children, designated beneficiary or estate become entitled to a benefit, provided you have completed at least 2 years of service.
2.Does the School Division have to provide at least 50% of the pension I have accrued for service after January 1, 1985?
Yes. Your required contributions, with interest, made after January 1, 1985, may not exceed 50% of the value of the pension you accrued for service after January 1, 1985.
3.What happens to any excess contributions?
The excess may be paid to the recipient in a lump sum, used to increase any pension payable, or, if the recipient is you or your spouse, transferred to another registered pension plan or a registered retirement savings plan.
XIIMarriage Breakup
1. When is a “marriage breakup” considered to have occurred?
A legal marriage ends, for the purpose of pension credit splitting, on the day you and your spouse begin living separate and apart.
2.Is my spouse entitled to any benefit upon marriage breakup?
Yes
3.What is the benefit that will be paid?
Your spouse is entitled to one-half of thevalue of the pension you accrued during the period of your marriage or common-law relationship.
4.Is my spouse entitled to my pension if I am already retired?
Yes. Your spouse will receive a portion of your pension payments.
5.Can my spouse waive entitlement to a portion of my pension?
Yes. You and your spouse may sign a form agreeing to waive entitlement to a benefit after receiving independent legal advice.
6.What if my spouse is also a member of a registered pension plan?
If you and your spouse both agree in writing, the benefit to be divided will be determined by an equal division of the difference in benefits.
7.Does my spouse have transfer rights?
Yes. Your spouse must transfer the value of the benefit to a registered pension plan, a locked-in retirement account or a life income fund. The amount transferred must continue to be administered in accordance with the Pension Benefits Act of Manitoba.
XIIIReinstatement of Previous Service
1. If I leave the service of the School Division, receive a lump-sum payment of all or a portion of my required contributions, then later become re-employed by the School Division, can I reinstate all or a portion of my previous years of membership in the Plan?