This pamphlet has been prepared as a summary of the Marine and Shipbuilders' Pension Plan. If you require further information about the Plan, please contact the Administrator, Pacific Blue Cross.
The Plan is managed by six Trustees appointed by the Union. The Trustees decide what the benefits of the Plan will be and under what terms the benefits will be paid, consistent with applicable legislation and the terms of the collective agreement which apply to the Plan. They appoint an actuary to value the liabilities and assets of the Plan at least once in every three years.
Eligibility and Enrollment
Each employee who is covered by a collective agreement with the Union, for whom required employer contributions are made is automatically covered by the Plan.
To be eligible for a pension you must have at least two years of plan membership.
Service
The Plan began in January 1975, and allows credit for service prior to that date. Credits for service after the Plan started depend on the number of hours for which the contributions required under the collective agreement are paid by your participating employer. This includes hours worked, but may include other hours such as vacation pay.
Past Service is credited for work while a member of the Union in the marine and shipbuilding industry in B.C. prior to 1975 with an employer who, at that time, had a collective agreement with the Union. Past Service will be credited back to January 1, 1949. If you had a break in service of two calendar years or more prior to January 1, 1975, you will lose credit for all service prior to the break in service.
After you join the Plan, a record of your hours will be kept. If 1,200 hours or more are reported in a calendar year you will be credited with a full year's Current Service. If less than 1,200 hours are reported in a year, you will receive 1/12th of a year of service for each 100 hours. If a total of less than 350 hours is reported in two consecutive calendar years, you will lose all credit for prior service unless your pension has vested.
You will also receive Credited Additional Service if more than 1,200 hours are reported in a calendar year after 1995. You will earn 1/12th of a year’s Credited Additional Service for every 100 hours over 1,200 hours.
The most hours you can receive Current Service or Additional Service for in a calendar year is 1,500 hours for 1996 and 1997, and 1,800 hours for 1998 and later.
Note: You will only receive credit for worked hours if paid for by your employer.
Credits for Time Lost
If you have five years of Current Service, periods of employment lost while you are entitled to receive time loss payments from the Workers' Compensation Board or Employment Insurance sick or parental leave benefits or short term disability under the Marine & Shipbuilders Local 506 Health & Welfare Plan shall be counted as credited hours at the rate of 125 hours per month, to the maximum number of months credited under the Welfare Plan (currently 12 months).
Credit for time on the Welfare Plan’s short term disability is automatic. Please submit your WCB or EI sick benefit stubs promptly to receive disability credits while on those benefits.
If you did not receive credit for an earlier period of disability when entitled, you may apply to the Trustees in writing. Provide evidence of your time on Workers' Compensation time loss payments or Employment Insurance sick or parental leave benefits. Before applying for the credit please contact the Administration Office.
Vesting Rights
Your pension is vested once you have completed two years of continuous plan service (with at least 350 hours contributed by your employer in each year), or when you reach age 65, whichever comes first.
Normal Retirement
Normal retirement age is 65 years. You may retire before or after age 65 in accordance with your wishes subject to the retirement policies and rules of the employer. Due to government legislation, payment of your pension must begin by December 31 of the year you reach your 69th birthday. If you continue working after this date, further service will not be credited.
Early Retirement (Before Age 65)
Once you are vested and have reached your 50th birthday, you may apply for an early retirement pension.
Your pension will be reduced by 6% for each year that your pension starts before your 60th birthday. If you retire on or after your 60th birthday, you will receive the full amount of pension earned up to the date of your retirement.
In the event of Plan termination (wind-up), pensions for members retiring early will be actuarially reduced to fully reflect their retirement date.
Apply In Advance for Your Pension!
No pension is payable under the Plan until a written application has been filed with the Trustees. Proof of age must be included with the application.
Pension at Age 65
For each year of Past Service, you will receive a monthly pension of $13.66. In addition, for each year of Past Service after your 50th birthday, you will receive an additional monthly pension of $13.66.
For each full (1200 hour) year of Current Service you will receive a monthly pension as follows
Year of Service Monthly Pension
1975 - 1990 $27.32
1991 - 1993 $53.50
1994 - 1997 $68.29
1998 - 2001 $72.10
2002 or later $75.71
For Credited Additional Service, you will receive additional monthly pension at the rate in effect for the year. e.g. for 2001, the maximum pension accrual (for 1800 hours) is $108.15; rising to $113.56 in 2002.
Retired Member's Life Insurance
If you are covered under the Health & Welfare Plan at the time of your retirement, $5,000 of Life Insurance will continue under that Plan after your hour bank runs out.
Discontinuing Retirement
If you return to work after retirement with an employer who is contributing to the pension plan, your pension will be suspended for any month in which 80 hours or more are reported. Pension payments will start again when you resume retirement or when you reach age 69.
Options
There are various ways you can take your pension. Contact the Administration Office to arrange an appointment for you and your spouse.
When you retire, your pension will be paid to you monthly for your lifetime, or for 60 monthly payments, whichever is longer.
However, just prior to retirement you can choose to receive an optional form of pension and the monthly amount will be adjusted accordingly. For example, you can increase or decrease the amount payable to your spouse, or lengthen, shorten or eliminate the guarantee period. If you retire before age 65, you may also be able to choose a payment integrated with the Old Age Security pension or the Canada Pension Plan.
Note: You may not withdraw your credited pension in the form of a lump sum, unless your pension meets the definition of a “small pension”.
If you have a spouse at retirement, you must elect a joint and survivor pension that pays your spouse 60% or more of the original amount after your death. If you elect a form of payment that results in payments to your spouse of less than 60% of the original amount, your spouse must sign a waiver.
For this purpose, "spouse" means a person who is either married to you and living with you or, if there is no such person, the person who has lived with you in a spousal relationship for at least two years.
Method of Payment
Your first monthly pension cheque will be issued at the beginning of the month following the month of retirement. Payment is made through the Administrator and can be made to a member residing outside Canada. The pension payments are subject to income tax.
Termination Benefit
If your pension is vested and you work less than a total of 350 hours in two consecutive years and you are under age 55, you will be entitled to receive a deferred lifetime pension payable from the Plan at your retirement date.
Alternatively, you may choose to transfer the lump sum value of your pension out of the Plan. You will have the option of a lump sum transfer to a locked-in RRSP, transfer to a savings institution to purchase a LIF, transfer to another pension plan or transfer to an insurance company to purchase a deferred lifetime pension payable at your retirement.
Note: "Locked-in" means that you cannot withdraw the lump sum payment in cash, but must use it to provide a lifetime pension. You may be exempted from locking-in if your pension meets the definition of a “small pension”.
If you choose a deferred pension and subsequently rejoin the Plan, future credits will add to the vested pension already earned. That is, service after re-joining the Plan is automatically vested.
If you choose any of the lump sum transfers, and subsequently rejoin the Plan, you will be treated as a new member.
Death Benefit
If your pension is vested prior to your death, your beneficiary will receive the greater of 60 monthly payments of the pension you earned up to the date of your death, or 60% of the lump sum value of the pension you earned up to the date of your death.
If you have a qualifying spouse at the time of your death, your spouse will receive the death benefit. If you have no qualifying spouse, the death benefit will be paid to your designated beneficiary. If you are not survived by a beneficiary, your death benefit will be paid to your estate.
If the benefit is paid to your spouse, she/he will have the option of a lump sum tax-free transfer to a locked-in RRSP, transfer to a savings institution to purchase a life income fund (LIF), transfer to your spouse's pension plan, or transfer to an insurance company to purchase a lifetime annuity. Any other beneficiary must take the benefit in cash, net of withholding tax.
Beneficiary Designation
If you have a spouse, your spouse must be your beneficiary. If you have no spouse, you may designate or change a beneficiary under this Plan at anytime by completing a form provided by the Administrator.
If you do not have a spouse, and have not designated a beneficiary, the Plan shall consider the beneficiary under the Group Life Insurance Plan to be your designated beneficiary. If you are not survived by a beneficiary, any death benefits shall be paid to your estate.
NOTE: if your spouse or former spouse has rights under the Plan, those rights are not changed if you name another person as beneficiary.
Annual Statements
Provided your correct address is on file with the Administrator, you will receive annual statements showing the number of years of service you have accumulated and the amount you would receive if you were 65 years of age and had not elected an optional form of pension.
No Assignments or Attachments
You cannot use your Pension credits as security or collateral for a loan.
Marriage Breakdown
Your benefits under this Plan cannot be assigned with the exception of credit splitting upon marriage breakdown. If required by a court order or separation agreement, a portion or all of your benefit entitlement under this Plan can be assigned to your spouse or former spouse or commuted to a lump sum and transferred to your spouse's or former spouse's RRSP or pension plan.
If a former spouse makes a lump sum transfer out of the Plan, she will have no further rights under the Plan.
Discontinuance of the Plan
The Trustees may suspend or discontinue the Plan upon written instruction from the Union or after a reasonable determination that contributions to the Plan have been discontinued and are not likely to be resumed within the foreseeable future.
On Plan termination, benefits may be reduced if the Pension Fund is not sufficient to meet the liabilities of the Plan. The termination of the Plan and winding up of the Pension Fund shall be done in an equitable manner with the assistance and advice of the actuary.
Treatment of Surplus
Any surplus during the continuation or wind-up of the Plan shall be used to improve the benefits of the Plan.
Your Address is Important
It is your responsibility to ensure that your correct address is on file in the Administration Office.
Decision of Trustees
In all cases, decisions made by the Trustees in accordance with the Plan Text shall be considered final and binding.
Where can I get more information about the Plan?
The trustees have appointed Pacific Blue Cross to administer the Plan. If you require further information about the Plan, contact Pacific Blue Cross as shown on this brochure.
NOTE: This brochure only summarizes the provisions of the Pension Plan. While every effort has been made to describe the Plan accurately, it is difficult to express complex legal language in simple terms. The legal plan documents are used to determine your pension benefits.
** Brochure updated September 20, 2001 **
** /mspdbook01 ** CUPE 1816 **
Find Local 506 and the current version of this brochure on the World Wide Web!
Go to http://www.carpentersunionbc.com/
click on “BC Locals”, then on “Local Union 506”
MEDICAL SERVICES PLAN Basic Medical, BC government plan (Premiums paid by the Plan are a taxable benefit).
EXTENDED HEALTH CARE (EHC)
(insured by Pacific Blue Cross) $50 Deductible, 100% Reimbursement, no overall financial limit
- Prescription drugs not paid unless recognized by Pharmacare, including low-cost alternative - consult your doctor/pharmacist.
- Submit EHC receipts by June 30 of following year to Pacific Blue Cross.
- Hearing Aids
- Vision Care (Glasses)
- Emergency Medical Assistance - $500 per person lifetime
- Max $250 / 24 months (no deductible). Submit receipts by June 30 of following year to Pacific Blue Cross EHC.
- (provided worldwide through Medex Assistance Corp) (see below)
SHORT TERM DISABILITY (WI)
(self-insured by the Trust Fund, paid by BC Life & Casualty Company) $413/week (effective July 1, 2000), from 1st day injury or in hospital, 4th day illness, 52 week max: 20 weeks BC Life; 15 weeks EI; 17 weeks BC Life. BC Life pays if not eligible for EI sick benefits.
LONG TERM DISABILITY (LTD)
(insured by The Manufacturers Life Insurance Company) $1,500/month, after 52 week qualifying period (WI), payable up to 5 years, or until age 60, or recovery. First 2 years disabled from own occupation, thereafter disabled from any occupation.
Subject to offsets for WCB and CPP, and to 85% overall maximum.
Applies to new disabilities starting on or after August 1,1998 only.
You MUST APPLY within 15 MONTHS of becoming disabled!
LIFE INSURANCE
(insured by The Manufacturers Life Insurance Company) $25,000 member, $2,000 spouse, $1,000 child.
$5,000 retired member only (must be covered on hour bank at retirement).
(Premiums paid by the Plan are a taxable benefit).
- Conversion - You may convert to an individual life policy by applying within 30 days of termination from Plan coverage.
- Disability Waiver - If you apply promptly after being disabled for 6 months, life insurance coverage may continue to age 65.
ACCIDENTAL DEATH AND
DISMEMBERMENT (insured by RBC Life Insurance Company)
$25,000 principal sum (member only).
DENTAL (self-insured by the Trust Fund)
- PART A (BASIC) - 90% (No limit on Part A)
- PART B1(CROWN,BRIDGE)* - 70% (Combined Part B limit is $1,500 per person per year)
- PART B2(DENTURES)* - 90% * (Part B coverage starts 6 months after Part A)
- PART C (ORTHODONTIC)* - 75% ($2,500 per person lifetime maximum)
*(Part C coverage. starts 6 months after Part A)
ASSOCIATE MEMBERS Employer's office staff, etc., if approved by Trustees, may be covered by paying full cost of coverage.
NOTE: PRESCRIPTION RESTRICTIONS
The cost of prescription drugs for the government and private plans has soared in recent years. BC Pharmacare has been imposing limits, and paying only for what it considers the most cost-effective medically acceptable drugs to treat certain conditions. Your plans drug benefits are based on Pharmacare rules.
This happens in three main ways:
1) Some types of prescription drugs are not paid for at all. Examples are laxatives and anti-inflammatories. Good alternatives are available without prescription.
2) Pharmacare pays for the low-cost generic form of some drugs, not the expensive brand name.
3) For some medical conditions, Pharmacare pays for the usual recognized drug treatment, not for more expensive alternative drugs.
When your doctor writes a new prescription, or when you have the pharmacist fill or re-fill a prescription, you should always ask, Is this covered by Pharmacare? If not, ask Is there a drug covered by Pharmacare which you would recommend for my condition?
If you need a drug not covered by Pharmacare,
Ask the doctor to submit a Special Authority Form to Pharmacare right away, by FAX if possible. If the doctor provides a return FAX number, Pharmacare will normally reply in a couple of days, approving the prescription or giving a reason for not approving it. The approval will normally cover one year, but may be for a shorter period.
In the meantime, ask your druggist for a trial prescription (a few days supply). Once approved by Pharmacare, have the full prescription filled, and telephone or write Pharmacare for a copy of the approved Special Payment Authorization. When you send the receipt to Pacific Blue Cross for reimbursement, include the approved authorization.
This means some extra effort by you, your doctor and druggist. We all must play a role in understanding the costs of different treatment options. These are tight times, and the money bargained from employers must be spent in the most effective way possible.
RETIREE LIFE INSURANCE
To be eligible for the $5,000 retired member coverage, you must be covered on this Plan and in good standing with Local 506 upon retirement. Retiree life insurance is for the member only, not for the spouse or dependents.
