Vesting<strong>Pension</strong> BenefitsVesting means entitlement. If you are vested, itmeans you are entitled to a pension when youretire.When Am I Vested?You will become vested as soon as you have:• Completed at least 24 months of continuousservice as a <strong>Plan</strong> participant, or• You have attained age 65.• If you are a Manitoba participant, you arevested immediately (as required by law).Vesting service is your service after you become aparticipant in the <strong>Plan</strong>. Under special circumstancessuch as disability and some other types of employmentwith your contributing employer, you may stillqualify for vesting service.Once you are vested, you have a right to the pensionyou have earned even if you do not work for acontributing employer again.Example:Jesse began working full-time for a contributing employeron December 1, 2010 and became a participanton January 1, 2012. Jesse continued toparticipate throughout 2012 and 2013. On January1, 2014, Jesse becomes vested. Now, even if hestops working in covered employment, Jesse is eligibleto receive a pension from the <strong>Plan</strong> when heretires.Four types of pensions are provided under this<strong>Plan</strong>:1. Normal Retirement <strong>Pension</strong>2. Early Retirement <strong>Pension</strong>3. Disability <strong>Pension</strong>4. Deferred <strong>Pension</strong>This section describes when you are eligible toreceive each type of pension and the amount ofthat pension. Keep in mind that you may receiveonly one type of pension from the <strong>Plan</strong>.Normal Retirement <strong>Pension</strong>When Am I Eligible for a Normal Retirement<strong>Pension</strong>?You are eligible to retire on a normal retirementpension if you are at least age 65.If you keep working for a Contributing Employerafter age 65, you may continue to earn benefits inthe <strong>Plan</strong> until you actually retire. However, you mustbegin receiving your pension no later than the Januaryfollowing your 71st birthday.How is a Normal Retirement <strong>Pension</strong>Calculated?How your normal retirement pension is calculateddepends on when your benefits were earned. A differentpension formula is used for benefits earnedduring the following three periods:• Benefits earned on and after January 1, 2010• Benefits earned from January 1, 2000 toDecember 31, 2009• Benefits earned up to December 31, 1999A monthly pension amount is calculated for benefitsearned during the above periods separately. Yournormal retirement pension is made up of the totalof these three monthly pension amounts.—10—
(1) For Benefits Earned On and AfterJanuary 1, 2010:• You will receive a monthly benefit equalto 1.5% multiplied by the total contributionsmade on your behalf by your employeron and after January 1, 2010 atthe Base Contribution Rate (the ContributionRate in effect for your employer asof January 1, 2010 that was negotiatedby your local).• However, if your employer’s ContributionRate decreases, then the accrual rate forthose contributions will also decrease asfollows:Example:On and after January 1, 2010, Antonio’s benefitsare based on an accrual rate of 1½ percent of thecontributions made on his behalf by his employer. IfLower Contribution Rateas a % of the BaseContribution RateBenefit AccrualRate for LowerContribution Rate90% 1.2%80% 0.9%70% 0.6%60% 0.3%50% or lower 0%his employer’s contribution rate was $1.00 an houras of January 1, 2010 and Antonio worked 1,850hours in 2010, the monthly amount of normal retirementpension earned in 2010 would be $27.75(1.5% times $1,850 of contributions).(2) For Benefits Earned FromJanuary 1, 2000 To December 31, 2009:• You will receive a monthly pension equalto the benefit rate payable at each ContributionRate multiplied by the number ofunits of <strong>Pension</strong> Credit at each ContributionRate.• Appendix A provides more information onhow benefits earned during this period iscalculated, as well as a table which setsout the monthly benefit rate applicable foreach Contribution Rate.(3) For Benefits Earned Up ToDecember 31, 1999:• You will receive a monthly pension equalto the total applicable monthly pensionamounts which are based on the numberPre-2000 <strong>Pension</strong> Credits and the applicableweighted average ContributionRates (determined as the weighted averageof your Contribution Rates during thelast 12 months prior to January 1, 2000).• Appendix A provides more information onhow benefits earned during this period iscalculated, as well as a table which setsout the monthly pension amount applicablefor each Contribution Rate.Early Retirement <strong>Pension</strong>When Am I Eligible for an Early Retirement<strong>Pension</strong>?You are eligible to retire on an early retirementpension if you are:• At least age 55; and• You are vested.How is My Early Retirement <strong>Pension</strong>Calculated?An early retirement pension is calculated the sameway as a normal retirement pension, but is reducedby one-half of 1% for each month you are youngerthan age 65 when your early retirement pensionbegins.Example:Bill has completed enough service to be vested andis eligible for a regular pension of $1,500.00 amonth payable at age 65. However, since Bill wantsto retire on his 62nd birthday, his early retirementpension is calculated as follows:1. The regular pension Bill would receive if he wereage 65 is $1,500.002. The reduction for early retirement (36 monthsyounger than age 65) is 36 times .005 (one half apercent) or 18% (0.18)3. The early retirement pension will be 82% of theregular pension benefit (100% minus 18%)4. To determine the monthly benefit, multiply theregular pension benefit, $1,500 by 82%. Thatequals $1,230.—11—