Frequently Asked Questions
How much is my commuted value?

This is an actuarially calculated value (lump sum) of your accrued benefit on the date of termination. This calculation takes into consideration your accrued benefit, your age and prescribed interest rates at the date of termination. The calculation uses as assumption that you will retire at 65.


If I terminate do I get the amount that the employer contributed?


Employer contributions - effective January 1, 2006 is 10% of gross bargaining unit employees' payroll of which a portion provides funding to the LTD Plan. Gross bargaining payroll encompasses all bargaining unit employees including employees not participating in the Pension Plan. The Employer contributions are used to fund the Plan for all retirement benefits and provisions and they are not refundable to a member. Employer Contributions are not used in the calculation of your accrued benefit except to confirm you have not paid for more than 50% of your benefit.


What happens if I die?


If you die before retirement, the benefits payable depend on your service, age and beneficiary status at the date of death. Please Refer to Death before Retirement in the Pension Plan booklet for detailed information. If you die after retirement it will depend on the option you chose when you retired.


Is our pension plan indexed?


There is no indexing and no promise of a pension increase. However the Trustees do review the financial position of the Plan annually and have provided adhoc increases depending on if there is a sufficient excess of funds to provide an increase over and above providing an "Updated" benefit to active members.


What is a Defined Pension Plan?


A Defined Benefit Plan specifies the formula for determining the benefit entitlement and the employees are promised a "defined" amount of pension.

The defined benefit under the TW Pension Plan is 1.75% of gross earnings otherwise known as the "promised benefit".

On an annual basis the Trustees review the financial position of the Plan to provide for an "Update" formula for that year otherwise known as the "target benefit". Updating is the process of bringing forward 3 years of average earnings to produce a benefit on final earnings. Updating is only done if it increases your benefit and will never be done if it would reduce your benefit.


Which Pension Legislation are we covered under?

The Plan is registered under the Income Tax Act and the Federal Pension Benefits Standard Act.

When can I apply for my pension?

The Administration can accept Applications for Pension three months prior to your retirement date. Applications submitted earlier than this will be returned with a request to resubmit within the three-month period.

If I name my minor children, as beneficiary should I name a trustee to act on behalf of them?


If your children are age 18 and under we cannot issue benefit payments to them directly. We suggest you name either a person who could receive the benefits on behalf of the children or name your estate and make sure you have a Will. If you do name your minor children, benefits whether it be with the Pension office or a Will it will most likely be paid to the Public Trustee office or a court appointed guardian with an order to accept monies on behalf of the children.

What happens to my pension if I go to a lower paying job

If you go to a lower hourly rate or from a full-time position to a part-time position your pension is not reduced. You will still continue to accrue an annual pension based on the "promised" benefit formula of 1.75% of your gross earnings. You will just not accrue as much as you would have had you been at the higher paid or full-time position.

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