Termination

Your active status can end either voluntarily (i.e. at your option) or automatically.


Voluntary Termination

You can terminate your active status voluntarily if you have less than a total of 350 employer-paid hours in the last two Plan Years.

If you satisfy this condition, you will be given the choice of staying in the Plan or terminating your membership.


Automatic Termination

Your active status in the Plan ends automatically if:

  • you did not earn any pension, through employer-paid hours and self-payments, in a period of three consecutive Plan Years,
  • andyou are not a member of a participating local union at the end of that period,
  • and you do not have a total of 350 or more employer-paid hours in the last two Plan Years.

To receive your termination benefits, you must fill out an application form, which will be sent to you with your Annual Statement if you are eligible.


Your termination benefit

To receive a termination benefit, you must satisfy the vesting requirements under the Plan. You are immediately vested for hours worked after June 30 2011. For hours prior to July 1 2011, you are vested if you have earned some pension in at least two Plan Years.

Your options depend on whether you earned your benefits before or after January 1, 1993 and on whether your termination is voluntary or automatic.


For benefits earned before 1993:

You may receive the portion of your benefit earned before 1993 as either:

  • a transfer of the commuted value of the deferred pension out of the Plan to a regular RRSP, or
  • a cash refund, subject to withholding tax.

Those who terminate automatically may also choose:

  • a deferred pension equal to the pension earned by you for membership in the Plan prior to 1993.

For benefits earned during and after 1993:

You may receive the portion of your benefit earned after 1992 as:

  • a transfer of the commuted value of the deferred pension out of the Plan and locked into one of the following vehicles:
    • another registered pension plan (if that plan allows it),
    • a locked-in RRSP,
    • a life income fund,
    • an insurance company or other savings institution, to purchase a deferred pension or retirement income that is not commutable and will not start before you attain age 55.

Those who terminate automatically may also choose:

  • a deferred pension equal to the pension earned by you for membership in the Plan after 1992.

If the amount owing to you is small enough, the commuted value may be transferred to a regular RRSP or received in cash, subject to withholding tax. Consult the Plan Office for details.


If you choose a deferred pension, you can have it start any time after you turn 55.

However, your pension will be reduced by 1/2 of 1 per cent for each month that your pension commences before you turn 65.


Your termination benefit will be at least…

…the value of your total self-payments accumulated with interest to the date on which your membership terminates.