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Glossary 30 Plus Pension Credit Pension Service Credits over 30 years 60-Month Guarantee Option Is one of the pension options available to members of the plan. If a member does not have a spouse or his/her spouse waives the right to the survivor pension, a member will a receive a pension for his/her lifetime with a minimum guarantee of 60 monthly pension payments. Should a member predecease the expiration of the 60-month period, the remaining benefits will be paid to the designated beneficiary on file or to the member’s estate. Active Member Is a Vested Member who is still working in covered employment and on whose behalf pension contributions are being remitted to the plan. Actuarial Equivalent Equivalent value when calculated on the basis of mortality tables and interest rates established by the Trustees. Actuarial Valuation A report prepared by the actuary to determine the required contributions that must be paid into a defined benefit plan and to determine if the present fund is sufficient to cover the present accrued liabilities. Actuary A professionally trained specialist in the pension and insurance fields who advises plan Administrators on such matters as plan funding and design. Beneficiary The person you have named in a signed document to receive your assets, including your pension on your death. This document must be filed with the Pension Plan office. Break in Past Service A break in Past Service occurs when a member, prior to his Contribution Date, was not a member of a participant local union, or not working in Covered Employment for one calendar year. Having a Break in Past Service results in the cancellation of any years of Past Service Credit accrued prior to break. CPP Canada Pension Plan C/QPP Canada/Quebec Pension Plan CRA Canada Revenue Agency (formerly Revenue Canada and Canada Customs and Revenue Agency). Collective Agreement Contract between Local Unions and Employers governing wages, pension contributions, benefits and working conditions. Commuted Value The amount of an immediate lump-sum payment estimated to be equal in value to a future series of pension payments. Contribution Date The first day of the month in the first year that a Contributing Employer submits at least 300 hours of contributions on your behalf. Contributing Employer The employer becomes a Contributing Employer of the Pension Fund upon signing a collective agreement with the Local Union. Contribution Rate The contribution rate is the hourly rate which is negotiated between the Local Union and the Contributing Employer of the Pension Fund upon signing a collective agreement with the Local Union. Covered Employment Working for an employer covered by an Agreement negotiated with the Labourers’ International Union or the Trustees, which requires contributions to the Plan. Deferred Vested A Vested Participant who is under age 55 and is terminated from the Plan, as no pension contributions have been sent in to the Plan on their behalf for at least 24 months, and the Commuted Value of their pension has not been transferred to a locked-in RRSP. Defined Benefit Plan A defined benefit is a plan in which the benefit on retirement is determined by a set formula(s) that takes into account age, years of credited service and contributions. This type of plan clearly defines the amount of retirement income to be paid to the member of the plan at certain time, such as at age 65. Eligible Spouse (pre-retirement) A member’s eligible spouse is generally someone who, at the time a determination is needed and prior to the commencement of any pension payable:
Definition of eligible spouse varies according to the province where you last worked with a contributing employer to LPF. The following chart shows the specific definitions for each province.
Eligible Spouse (retirement date spouse) If the member had a spouse or common-law spouse when he retired and started receiving his pension, and he elected the 60% Joint and Survivor or the 100% Joint and survivor option, then that person is considered to be a retirement-date spouse and, thus eligible for any Joint and Survivor benefits that were elected at the time of retirement. If after the member retires there is a separation or divorce, the retirement-date spouse would still qualify as the eligible spouse for any Joint and Survivor benefits payable upon the pensioner’s death. If the member re-marries after retirement the new spouse is not eligible for any Joint and Survivor benefits payable upon the pensioner’s death. FSCO Financial Services Commission of Ontario Future Service Credit For every 300 hours worked and remitted to the Plan on your behalf, you will earn 1/4 (0.25) year of Future Service Credit. Initiation Date The date a Participant joins the Union, according to the records of the Local Union, or records of the Labourers’ International head office in Washington. Joint & Survivor Pension A pension payable until the death of both the member and his or her spouse. This type of pension is required in all Canadian jurisdictions to be provided as an option at the time of a member’s retirement. Please see Standard Form for more information on this type of pension. Locked-In Once you are vested in a Pension Plan, your benefits become locked-in. Locked-in means that the funds must be used to provide a pension at retirement. Marriage Breakdown Valuation The value of a couple’s assets upon the ending of their marriage, either by separation or by divorce. Member You become a Member of the Plan as soon as you complete 1,200 hours (1 year) of Future Service Credit and your Contributing Employer has remitted the hours times the Contribution Rate to the Plan on your behalf. New Formula The formula for calculating pension benefits for contributions over and above the Preserved Benefit Rate, on and after January 1, 1999. Non-Contributory Pension Plan Plan that is totally funded by the employers; employees do not contribute to the plan. Non-Resident A Non-Resident of Canada for tax purposes, is one who lives outside of Canada throughout the tax year, or who stays in Canada for less than 183 days in the tax year. NR4 A Canada Revenue Agency tax form for withholding, remitting and reporting income tax for non-residents of Canada receiving income from a Canadian source. NR5 A Canada Revenue Agency tax form used by a non-resident of Canada to apply for a reduction in the amount of non-resident tax that is held from Canadian income sources. Past Service Credit Past Service Credit is credit that is accumulated prior to the date your first pension contribution was remitted into the Plan. Past Service Credit may be earned through payment of your Union dues, or if you worked with an Employer that subsequently became a Contributing Employer to the Plan. Pension Adjustment (PA) The amount the employer has contributed to the Fund on your behalf during the calendar year. Pension Benefit Guarantee Fund (PBGF) To guarantee payment of certain benefits in respect of employment in Ontario in the event a pension plan is wound up. Multi- Employer Pension Plans are not covered by the Pension Benefit Guarantee Fund. Pension Credit Is the total of your Past Service Credit and your Future Service Credit. Portability The ability to transfer your pension. Preserved Benefit Rate Contribution Rate as of January 1, 1997, less 10¢ allocated to the Thirty and Thirty-Five Pension and 2¢ allocated to the Sixty and Twenty-Five Pension, plus a 20% increase. Prorated To divide or distribute proportionally. Quarter of Pension Credit Each 300 hours worked and sent in to the Pension Fund on a Participant’s behalf. RRSP Registered Retirement Savings Plan Reciprocal Agreement The agreement between the Labourers’ Pension Fund and their Western counterparts. Self Payment You can top-up your Pension Credits by making payments on your own. If you work 300 hours or more, but under 1,200 hours in a calendar year you can top-up your hours to 1,200 hours. If you work less than 300 hours in a calendar year you can top-up to 300 hours. A Self-Payment is tax deductible to you. SC Service Canada SIP & P Statement of Investment Policies and Procedures – a document drafted with investment consultants, which must be in compliance with regulatory requirements and is to be reviewed annually by Trustees. T4A A statement of pension, retirement, annuity and other income. TD1 Personal tax credits return – a form provided by the Canada Revenue Agency, which when completed for pensioners will instruct the Plan on how much income tax is to be withheld. Transfer Ratio The ratio of the total assets to the Wind-up liabilities, and represents the portion of the value of benefits that would be paid on Wind-up. Trust A legal title to property held by one person, for the benefit of another. Valuation See Actuarial Valuation (above). Vested/Vesting Being entitled to a pension benefit when you retire. You are Vested when your Pension Credits become locked-in. WSIB Workplace Safety & Insurance Board YMPE Year’s Maximum Pensionable Earnings – YMPE is a figure set by the Federal Government to determine contribution and benefit amounts to the Canada Pension Plan. This figure changes annually.
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