About Your Pension Plan and What Your Pension Plan Provides
Your IBEW Local 353 Pension Plan is a Specified Ontario Multi-Employer Pension Plan that provides a monthly pension benefit based on a pension formula in retirement. These plans are sometimes referred to as “target benefit pension plans” because both the benefit formula and benefits earned, including pensions in pay, can be adjusted either up or down by the Board of Trustees if there is either a surplus (more funds than needed) or a deficit (less funds than needed) in the Plan to pay the pension benefits earned.
The estimated amount of monthly pension you will receive from the Plan will depend on the pension contributions submitted on your behalf, as well as the pension factor in effect when those contributions were made.
The current pension factor is 1.2%. So, for every $1,000 in pension contributions submitted to the Plan on your behalf, you earn a monthly pension of $12 ($1,000 X 1.20%). (Note that$0.56 per hour (prorated for apprentices) are paid into the Plan that do not earn pension. These payments act as a funding cushion to sustain the funded status of the Plan during volatile investment periods.
The contributions made to the Plan on your behalf are added up each month, then the pension factor is applied to calculate the monthly benefit earned. Each year this calculation is added to the previous years’ amounts – the total of which result in your pension amount at retirement. Once a year you receive a statement indicating your estimated total monthly pension at your normal retirement date.
In retirement you receive a monthly benefit based on the sum of your contributions made to the Plan.
Thinking of Retiring?
It’s never too early to plan for your retirement. As you are planning for your retirement, remember in Canada saving for retirement consists of three main avenues, also known as the “three pillars of retirement.”
Before you retire, log on to myteibas.com to review your IBEW Local 353 Annual Pension Statement and your Pension Plan booklet. Use the TEIBAS Pension Estimator on myteibas.com to estimate your pension amount at the date you’d like to retire. You can also request your personalized Pension Retirement Option Package and meet with us for a one-on-one retirement planning session.
As a member of the IBEW Local 353 you have access to a variety of services and information to help you plan for your retirement. Review this checklist and give us a call today to start you on your retirement journey. We’re here to help!
The three pillars are:
Government based programs (Canada Pension Plan, Old Age Security, etc.)
Employment based programs (like your IBEW Local 353 pension and Group Registered Retirement Savings Plan (RRSP))
Individual savings (individual RRSPs, Tax Free Savings Accounts, personal savings, property, etc.)