Pension Plan

Pension Plan Summary

The following table provides a summary of your Pension Plan. For more detailed information, please consult the Welfare & Pension Plans – February 2015 booklet.

The Pension Plan is designed to provide you with an income upon retirement. The normal retirement age under the Plan is 63, though earlier retirement options are also available. Various pension options are offered at retirement, and these are explained in the Pension section of the booklet.

Since July 1, 2012, members with 700 or more hours remitted to the Pension Plan qualify for membership in the Plan. The Plan provides for:

  • Retirement benefits
  • Death benefits
  • Termination benefits

Pension Plan News

There have been no recent changes to the pension plan.

How to Retire

Once you have an idea of when you would like to retire, contact the pension office to have pension estimates prepared. These estimates, which include various pension options, are conducted by our Actuary office in Toronto and will be mailed to you. You can then review these options with your spouse, family, and/or financial advisor. We are available to review these options with you, either in person or by phone—whichever is most convenient.

After your questions are answered and you've decided when to start your pension, we will complete the application forms together. This can be done in our office or mailed to you. At that time, we will require proof of age for you and your spouse (passport, birth certificate, or citizenship) and banking information (void cheque) for direct deposit.

We may need to wait for your final hours worked to be remitted to Local 18, which might delay your pension by a month. If necessary, however, pension payments will be made retroactively to your retirement age.

Additional Steps During Retirement Application

When completing your application forms, we will also discuss your Welfare coverage (Health and Dental Benefits) and your Union Dues:

  • Welfare Coverage: Initially, any Welfare hour bank you have will be used up. If you are under age 65 and qualify, you may receive Welfare Bridging coverage as an early retiree, up to age 65, at no charge. After age 65, coverage through your Local 18 Plan will cease unless you still have an hour bank remaining.
  • Spousal Bridging Benefits: If you reach 65 and your spouse is under 65, they may qualify for Spousal Bridging benefits, available for a maximum of 7 years or until they reach age 65, whichever comes first. The cost for this coverage is $100 per month. More details on these benefits are available in your Benefits Booklet or can be discussed with our office.

Upon application for your pension, we will also send a letter to the Local 18 Union Office, requesting reduced dues for you as a retiree. If you have a significant Dues Trust Fund balance, you may be eligible to receive a portion of it returned to you. This will be determined at the time of application.

We look forward to assisting you on your way to a well-deserved retirement.

Pension Plan FAQ

Please refer to the How To Retire section for more information.

If you did not meet the membership and/or vesting requirements of the Pension Plan, you will not receive any pension benefit from the Plan.

If you did meet the requirements, you are entitled to a pension benefit. At termination, our office will send you a Termination Option Statement outlining your options. If you are over 53, you can commence your pension at any time in line with early retirement provisions. If under 53, you may have the option to transfer your pension's commuted value to another plan, a Locked-In Retirement account, or purchase a life annuity.

If you have a pension with Local 18, keep your contact and beneficiary information updated even after membership termination.

If transferring to a Local with a reciprocal agreement, you may join the new plans or remain with Local 18's plans for up to 12 months. Local 18 will send you an Election Form for this choice.

Your pension remains with Local 18, and you begin a new pension with your new Local. Once your Local 18 pension becomes inactive, we will contact you regarding termination options.

Welfare Plan: Members may keep an ex-spouse listed as a covered spouse if required by court order, though court orders bind the member, not the Plan.

Pension Plan: Changes introduced in Ontario's Pension Benefits Act affect pension division upon marital breakdown. Your lawyer can help with FSCO-approved forms.

Annual Pension Information statements are sent each February, detailing your hours and providing a retirement estimate at age 63. Cash value prior to retirement is unavailable, except under termination options.

The $6.95 hourly contribution is made once per hour earned, whereas the $0.80 benefit is paid annually. Investment earnings contribute to this difference. See Benefits Booklet for more details.

Report any shortages to Local 18 immediately, keeping pay stubs as proof. Discrepancies may occur with cross-jurisdictional work; the annual statement shows both hours for clarity.

Contact Local 18 Benefits Office to complete a CRA TD1 Form. You can specify the additional amount for tax deduction. The form will be effective upon receipt of your signature.

After 24 months without a contribution, your pension is inactive due to a Break in Service. Any later hours remitted will start a new pension. A Termination Option Statement will outline your options.

Local 18 Pension Plan does not permit personal contributions. Contributions are made only by eligible employers on the member's behalf.

February

  • T4A's to pensioners for retirement income
  • T4A's to active welfare participants for life insurance premium

March

  • Annual Pension Information statements for active pension plan members

Interested in Becoming a Member?

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Local 18 Hamilton-Niagara

Hamilton Office

Phone: (905) 522-0752

Email: local18_info@ubcja.ca

Address: 1342 Stone Church East
Hamilton, ON L8W 2C8

Directions

Niagara Office

Phone: (905) 641-1877

Email: thorold@local18.ca

Address: 360 York Road, Unit #24
Niagara-on-the-Lake, ON L0S 1J0

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