TABLE OF CONTENTS - IWA Forest Industry Pension Plan

PENSION BASICSWhat is a Pension?As a USW member, you participate in a plan that will provide you with apension – a monthly, lifetime income – after you retire from work. Thispension is an asset, just like a house or boat or other property.Pension plans come in two basic types:• A defined benefit plan, which provides a pension based on a benefitformula tied to the plan member’s years of service; or• A defined contribution plan, which provides a pension based oncontributions made by the plan member and his or her employer, andthe income earned from the investment of those contributions.The advantage of a defined benefit pension plan is that it provides apredictable monthly benefit at retirement based on a formula of age,service and benefit levels; whereas, the monthly benefit available from adefined contribution plan is subject to fluctuation because of variableinvestment returns.MembershipYou are an Active Plan Memberwhile you are:• working and contributionsare made to the PensionPlan; or• collecting disability benefits;or• out of work up to yourbreak in service date.You are an Inactive PlanMember when:• you leave your benefitwith the Plan following abreak in service.Once you retire and begin tocollect your pension, youbecome a Retired Member ora Pensioner.What type is this Plan?The IWA - Forest Industry Pension Plan is a negotiated cost definedbenefit plan, where your pension is based on the number of years ofservice you accrued as a Plan Member and the benefit rate that applied toyour service. The benefit available to you at retirement is not primarilydependent on the investment performance of the Plan’s assets. As youprepare for retirement, you can project or estimate the amount ofmonthly pension you may receive.How does the Plan work?The Plan will pay you a lifetime pension, starting when you retire. Afteryour death, depending on what kind of pension option you choose atretirement, the Plan may continue to pay pension benefits to your spouse(if you have one) for his or her lifetime. The Plan may also pay a pensionbenefit to your beneficiary for the remainder of a guaranteed period, or alump sum payment to your estate.5