ibew local 804 - ibew 804 website booklet_local 804- fin… · ibew local 804 a guide to your...

YOUR MEMBER REWARDS

IBEW LOCAL 804

A guide to your retirement program

2

CONTACT US

If you have any questions about the program, please contact:

Union Benefi ts

151 Frobisher Dr.

Suite E220

Waterloo, ON

N2V 2C9

Phone: 519-725-8818

Toll-free: 1-800-265-2568

Fax: 519-725-9362

www.unionbenefi ts.ca

To get a personalized estimate of your defi ned benefi t (DB) pension,

you can access the online pension calculator from the Union Benefi ts

website above, or directly at:

www.804pension.com

For information on your defi ned contribution (DC) pension,

group registered retirement savings plan (RRSP) or group tax-free

savings account (TFSA), please contact Standard Life at:

Standard Life

1245 Sherbrooke Street West

Montreal, Quebec

H3G 1G3

Toll-free: 1-800-242-1704, extension 5020

www.standardlife.ca

This booklet provides a summary of your Local 804 retirement program in simple terms.

If you want more detail, you can ask to review the legal documents available at the offi ce of

the administrator, Union Benefi ts. If there are any errors in this booklet or differences between

the information given here and the legal documents, the legal documents will apply.

Defi nitions are provided on page 41.

3

TABLE OF CONTENTS

Welcome to the program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 A commitment to good governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Registration as a Specifi ed Ontario Multi-Employer Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Your responsibility under the program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Your Local 804 pension plan at a glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

The basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 How the pension plan works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Joining the pension plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Rejoining the plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Keeping track of your pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Your retirement benefi ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

PART 1: YOUR DEFINED BENEFIT (DB) PENSION

Earning your defi ned benefi t (DB) pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

How to calculate your DB pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Minimum pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Pension increases or decreases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

When you can retire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 An important decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

If you retire after age 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Your DB payment options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Choosing a pension that is right for you . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Example: comparing pension payment options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Understanding the impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Cash benefi t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Who qualifi es as your spouse? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

PART 2: YOUR DEFINED CONTRIBUTION (DC) PENSION and VOLUNTARY ACCOUNTS

Earning your defi ned contribution (DC) pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Investing your DC contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Your DC payment options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Buying an annuity (lifetime pension) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Comparing annuity payment options (example) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Transferring your DC pension to another registered account . . . . . . . . . . . . . . . . . . . . . . 25

Buying an annuity (lifetime pension) vs. transferring to a LIRA or LIF . . . . . . . . . . . 26

Voluntary accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Group RRSP and TFSA basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Contribution limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

RRSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

TFSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

… continued on next page

4

TABLE OF CONTENTS… continued

Tax and your voluntary accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 RRSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 TFSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Investment options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Key differences between your Local 804 DC pension account, your RRSP and TFSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

LIFE EVENTS, GOVERNMENT PROGRAMS AND DEFINITIONS

Life events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Naming a benefi ciary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Naming a child as benefi ciary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Divorce or separation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Leaving the plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Marriage or a new partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Maternity or parental leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Moving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Retiring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Applying for your DB pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Applying for your DC pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Pension income splitting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Receiving your pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Tax and your pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Receiving your voluntary accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Terminal illness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Transferring to/from another local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Working and collecting a pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Government programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Canada Pension Plan (CPP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Old Age Security (OAS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Guaranteed Income Supplement (GIS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Defi nitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

The fi nal word . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

A word about privacy

It is impossible to administer your retirement program without using personal information. However, Union Benefi ts is committed to protecting your privacy and has strict safeguards in place to protect your information from unauthorized access or use.

In addition, you have the right to see the information on fi le for you, and to update or correct it as necessary.

Union Benefi ts’ formal Privacy Policy is available for viewing in the member section of the website at www.unionbenefi ts.ca. For more information, please contact the Privacy Offi cer at Union Benefi ts.

5

Congratulations! Less than 35% of Ontario employees are covered by a

private pension plan — so as a member of the Local 804 pension plan,

you belong to a very privileged group.

Why don’t more Canadians have pension plans? Because they’re expensive!

When you retire, our plan currently needs well over $125,000 for every

$10,000 of annual pension it pays you. In other words, to pay you an annual

pension of $30,000, our plan would need approximately $375,000. In fact,

it’s not unusual for Local 804 members to discover that the pension they

have earned under our plan is, by far, their single largest fi nancial asset —

worth more than the combined value of all of their other assets.

Your Local 804 pension plan has two parts: a defi ned benefi t (DB) plan and

a defi ned contribution (DC) plan.

You also have the option of opening a group registered retirement savings

plan (RRSP) account and a group tax-free savings account (TFSA).

Whether you’re just beginning your career as a member of Local 804 or you

are a long-time plan member, we urge you to take a few minutes to review

this booklet and share it with those closest to you. In particular, we

encourage you to understand the options available to you — and the impact

these choices can have on your fi nancial situation over the long term.

A defi ned benefi t (DB) pension

plan provides just that... a clearly

defi ned benefi t. The amount of

pension you receive at retirement is

defi ned by a formula (see page 14).

These plans tend to provide more

security and often reward longer-

service members (those who

actually retire from the trade).

With a defi ned contribution (DC)

pension plan, it is only the size of

the contribution that is defi ned, not

the amount of pension the plan

provides. Employer contributions are

deposited to an account set up in

your name, and invested by you in a

range of professionally managed

investment funds. This type of plan

gives you control over the

investment and management of your

pension savings.

YOUR LOCAL 804

PENSION MAY BE

YOUR LARGEST

FINANCIAL ASSET.

WELCOME TO THE PROGRAM

6

AS A PLAN MEMBER,

YOU HAVE A

RESPONSIBILITY

TO USE THE

INFORMATION AND

TOOLS PROVIDED

TO YOU, AND TO

GET PROFESSIONAL

ADVICE WHEN

NEEDED.

A commitment to good governance

Local 804’s pension plan began on May 1, 1975, as a defi ned benefi t (DB)

plan. On May 1, 2009, a defi ned contribution (DC) component was added to

the plan. The pension plan is managed by a Board of Trustees made up of

four members appointed by the union and four members appointed by the

Electrical Contractors Association of Central Ontario. One of the Board’s

key responsibilities is to choose the professional advisors it needs to help

run the plan effectively and make sure that it complies with current

legislation. As plan “fi duciaries,” they also have a legal obligation to manage

the plan in the best interests of the plan membership.

Union Benefi ts looks after the day-to-day operations of the plan. This

includes signing up new members, receiving contributions from employers,

answering questions, and preparing defi ned benefi t (DB) statements.

Union Benefi ts is a non-profi t administrator owned by the plans that it

serves (including ours). For more information, go to www.unionbenefi ts.ca.

Standard Life is the recordkeeper for your defi ned contribution (DC)

account as well as your voluntary RRSP and TFSA. Standard Life’s job is to

handle your account transactions, provide information about your

investment options, invest your contributions according to your instructions,

and send you quarterly DC statements. You can also access your account

information online at www.standardlife.ca.

The plan is regulated by federal and provincial legislation. It is registered

under the Income Tax Act and the Ontario Pension Benefi ts Act

(Registration No. 0581579). The Trustees may change the plan at any time

and may, if necessary, make reductions under the DB portion of the plan to

maintain the plan’s registered status.

Registration as a Specifi ed Ontario Multi-Employer Plan

In 2007, the government of Ontario introduced new rules for multi-employer

defi ned benefi t plans like ours. Because it is highly unusual for multi-

employer plans to shut down, the new rules allow multi-employer plans that

meet certain conditions to register as a Specifi ed Ontario Multi-Employer

Pension Plan (SOMEPP). Our plan registered as a SOMEPP in 2008.

SOMEPPs don’t have to pass the “solvency” funding test that applies to

single-employer DB plans (which face a higher risk of shutting down). This

test checks to see what would happen if a pension plan ended immediately

and had to pay out the total benefi ts earned by active and retired members

all at once. By registering as a SOMEPP, our Trustees are able to focus on

maintaining the fi nancial health of our plan over the long term.

7

Your responsibility under the program

As a retirement program member, you have certain responsibilities including:

> reviewing the information that is provided to you, including this

booklet, your statements, and the information available to you at

www.standardlife.ca;

> using the tools provided to help you make informed decisions (such as

the investor profi le tools available from Standard Life);

> getting help from a qualifi ed, independent fi nancial advisor if you feel you

need additional guidance.

8

How to join the plan

Contributing to the plan

Size of your pension

Investing plan contributions

You join the plan at the beginning

of the month in which your

employer pays a pension

contribution for hours you have

worked. You must fi rst complete

a pension enrolment form and

return it to Union Benefi ts or the

Union Hall.

Under the terms of the collective

agreement, your employers are

required to contribute to the

DB plan for each hour that you

are paid.

DB contributions are deposited

into the pension fund, which is used

to provide members’ pensions.

Your DB pension is based on a

formula tied directly to the DB

contributions you earn (see formula

on page 14).

The Trustees, with the help of

outside experts, are responsible for

investing all DB contributions in the

pension fund.

Defi ned benefi t (DB) pension

You join the plan at the beginning of

the month in which your employer

pays a pension contribution for

hours you have worked. You must

fi rst complete a Standard Life

enrolment form and return it to

Union Benefi ts or the Union Hall.

Under the terms of the collective

agreement, your employers are

required to contribute to the DC

plan for each hour that you are paid.

DC contributions are deposited into

your personal DC pension account.

Your DC pension will depend on

how much money you have in your

DC account and your age at

retirement. The size of your account

will depend on contribution rates,

the number of hours you’ve worked,

and how much investment income

you have earned based on your

investment choices.

You are responsible for investing

the DC contributions made on

your behalf.

Defi ned contribution (DC) pension

YOUR LOCAL 804 PENSION PLAN AT A GLANCE


9

When you can start your pension

How your pension is paid

If you have a spouse

You can retire with an unreduced

pension on the fi rst of any month

between the ages of 63 and 65, as

long as you have Trustee consent.

This consent is based on the

fi nancial health of the plan.

If you have been a member

of Local 804 for at least 30 years,

you can retire with an unreduced

pension at age 62 with Trustee

consent.

Once you reach age 65, you

automatically qualify for an

unreduced pension and don’t need

Trustee consent to retire.

You may also retire as early

as age 55 with a reduced pension.

By law, you must start your pension

by the end of the year in which you

reach age 71.

Your pension is paid to you each

month for as long as you live. When

you retire, you choose whether you

wish payments to continue to your

benefi ciary(ies) after your death.

If you have a spouse when you retire, pension law requires that you choose

a form of pension that provides continuing payments to your spouse if you

die fi rst. Your spouse may sign a waiver refusing this benefi t.

You will receive your DC account at

the same time you start your DB

pension. Your DC account balance

can be transferred to another

registered plan, or used to “buy” a

lifetime pension from an insurance

company. You must start using the

money in your account to provide a

retirement income by the end of the

year in which you reach age 71.

You have a number of options for

receiving your DC account. When

you retire, you will be asked to

choose the one that’s right for you.

YOUR LOCAL 804 PENSION PLAN AT A GLANCE… continued


Defi ned benefi t (DB) pension Defi ned contribution (DC) pension

10

If you leave before age 55

In the event of your death

If you leave the plan after you have

completed 24 straight months of

plan membership, you have two

choices. You can:

1. keep your DB pension benefi ts in

the plan to provide a pension

when you retire, or

2. transfer the full value of your

DB pension to another

registered plan.

If you leave with less than 24

straight months of plan

membership, you do not qualify for

any DB pension benefi ts.

If you die before your pension begins, but after 24 straight months of plan

membership, the full value of your pension benefi ts will be paid to your

spouse or benefi ciary. If you die after your pension has started, death

benefi ts (if any) will depend on the form of pension you chose at retirement.

For information on voluntary accounts, please see page 27.

If you leave the plan after you have

completed 24 straight months of

plan membership, you must transfer

the full value of your DC account to

another registered plan.

If you leave with less than 24

straight months of plan

membership, you do not qualify for

any DC pension benefi ts.

YOUR LOCAL 804 PENSION PLAN AT A GLANCE… continued

Defi ned benefi t (DB) pension Defi ned contribution (DC) pension

11

How the pension plan works

Pension plans can be a little complex at fi rst glance. They use strange terms,

complex formulas, and government-set rules and restrictions. But when

you strip them down, pension plans are actually fairly easy to understand.

Apart from a few differences here and there, all pension plans work in pretty

much the same way.

1. Regular contributions fl ow into the plan and are held in trust for the

plan members.

2. The contributions are invested.

3. At retirement, the money in the plan is used to provide a retirement

income (i.e., a pension).

Money in, money invested, money out. This is exactly how our plan works.

Joining the pension plan

You join the plan at the beginning of the month in which your employer

pays a pension contribution on your behalf. You must fi rst complete both

a defi ned benefi t (DB) pension enrolment form (from Union Benefi ts) and a

defi ned contribution (DC) enrolment form (from Standard Life), and return

them to Union Benefi ts or the Union Hall.

If you pay union dues but do not work for an employer who makes

contributions on your behalf, you will not qualify for a pension from the

Local 804 plan.

Rejoining the plan

If you leave the plan and withdraw your benefi ts, you can rejoin the plan

on the fi rst of the month in which employer contributions are paid on

your behalf.

If you transferred the full value of your defi ned benefi t (DB) pension out of

the plan when you left, you must complete 24 straight months of plan

membership — after rejoining the plan — to qualify for any additional DB

pension you earn.

If you kept your DB pension benefi t in the plan when you previously

stopped working, you do not need to complete another 24 months of plan

membership to qualify for additional DB benefi ts.

THE BASICS

12

Keeping track of your pension

Union Benefi ts sends you two statements each year to help you keep track

of employer contributions and provide details on the amount of defi ned

benefi t (DB) pension you have earned. In addition, you will receive quarterly

pension statements from Standard Life showing the balance in your

defi ned contribution (DC) pension account.

Please check your statements carefully to make sure that the personal

information that Union Benefi ts and Standard Life have on fi le for you is

accurate and complete. And be sure to notify Union Benefi ts and Standard

Life if you move — so that you continue to receive your statements.

Your retirement benefi ts

When you retire, you will receive:

> a monthly defi ned benefi t (DB) pension for life; plus

> the full value of your defi ned contribution (DC) pension account

(which can be transferred to another registered account, or used to

“buy” a monthly pension from an insurance company); plus

> the full value of any voluntary accounts.

The actual amount of benefi ts you receive from the plan will depend on a

number of things, including the number of hours you’ve worked, the DB and

DC contribution rates set out in the collective agreement, how much

investment income you have earned in your DC pension account based on

your investment choices, and whether or not you convert your DC account

to a pension.

Please refer to pages 14-20 for more information about your DB pension,

and pages 22-26 for more information about your DC pension.

THE BASICS

PART 1YOUR DEFINED BENEFIT (DB) PENSION

14

3% of DB

contributions

received on your

behalf to

December 31, 2002

2.5% of DB

contributions

received on your

behalf from

January 1, 2003, to

December 31, 2003

1.25% of DB

contributions

received on

your behalf

from January 1, 2004

YOU GET TWO DB

PENSION STATEMENTS

EACH YEAR FROM

UNION BENEFITS.

IT’S IN YOUR BEST

INTEREST TO CHECK

YOUR STATEMENTS

CAREFULLY TO MAKE

SURE THAT ALL OF

YOUR HOURS HAVE

BEEN CORRECTLY

REPORTED AND THE

RIGHT CONTRIBUTIONS

HAVE BEEN PAID BY

YOUR EMPLOYER(S).

THE HIGHER YOUR

CONTRIBUTIONS,

THE BIGGER YOUR

PENSION. ALSO BE

SURE TO NOTIFY

UNION BENEFITS

WHEN YOU MOVE

SO YOUR STATEMENTS

ARE MAILED TO THE

CORRECT ADDRESS.

EARNING YOUR DEFINED BENEFIT (DB)

PENSION

Contributions

For each hour that you are paid, your employer is required to make a

contribution to the DB pension plan on your behalf. The exact amount of

the contribution is set out in the collective agreement. You are not required

(or permitted) to make additional contributions to the pension plan, but you

can make voluntary contributions to the group RRSP or TFSA (see page 27

for more information).

At the end of every month, each employer for whom you have worked

reports your hours and sends a cheque to Union Benefi ts. These hours are

recorded and the money is deposited in the pension trust fund along with

other members’ contributions. The trust fund is held by a trust company

whose job is to safeguard the funds and make sure that they are used

solely for the purpose of providing pensions. Professional investment

managers invest the trust fund in stocks, bonds and other types of

investments based on guidelines established by the Trustees with the help

of professional advisors.

How to calculate your DB pension

The DB pension you receive is based on a formula that is applied directly to

the DB contributions your employers make on your behalf. The formula is

decided on by the Board of Trustees based on the recommendation of the

plan’s actuary. The formula can change depending on the fi nancial health of

the plan. The fi nancial health of the plan, in turn, depends on many things,

including the expected level of contributions, investment returns, the age

of our members, the average life expectancy of our retirees, and the cost of

plan features.

Your monthly pension is based on the following formula.

+ +

15

YOUR DEFINED BENEFIT PENSION

Minimum pension

If you have received at least 3,000 hours of DB contributions, you qualify

for a minimum pension of $27.50 per month for each year of continuous

membership in Local 804 (maximum 10 years) before November 1, 1976.

This minimum pension is paid only if it is higher than the pension you would

receive from all of the DB contributions made on your behalf. The amount

of your minimum pension is prorated for partial years and reduced if you

retire before age 65.

Pension increases or decreases

The Trustees may increase pensions for active and retired members from

time to time if the fi nancial position of the plan allows for it — or decrease

pensions if the fi nancial position of the plan requires it.

WHEN YOU CAN RETIRE

Keep in mind that you must have 24 straight months of plan membership to

qualify for a pension from the Local 804 pension plan.

You can retire on an unreduced pension on the fi rst of any month between

the ages of 63 and 65 as long as you have Trustee consent. This consent

is based on the fi nancial position of the plan. If you have been a member

of Local 804 for at least 30 years, you can retire on an unreduced pension

at age 62 with Trustee consent. Once you reach age 65, you automatically

qualify for an unreduced pension and don’t need Trustee consent to retire.

Early retirement with a reduced pension is available as early as age 55 or,

if you prefer, you may delay your retirement until after age 65. If you retire

early (age 55 – 63), your pension is reduced by 6% for each year that your

retirement date falls before age 65 (unless you are at least age 62, have

been a member of Local 804 for 30 or more years, and have Trustee

consent). If you delay your retirement, your employer contributions will

continue as usual and your pension will continue to grow. You must start

taking your pension by the end of the year in which you reach age 71.

16


An important decision

Your retirement date can have a big impact on your monthly pension

amount. If you retire early, your pension is reduced two ways because:

1. you won’t work as long, so you will have fewer hours and the amount of

contributions used to calculate your pension will be smaller; and

2. your pension will likely be paid over a longer period than if you had

retired later, so the payments are reduced to keep the same overall value

(unless you qualify for unreduced early retirement).

It is very important to note that early retirement reductions are based

on your age when your DB pension starts, not when you stop working.

The longer you can delay starting your pension, the less the reduction.

Example 1: If you retire between ages 55 and 65 (and qualify for an unreduced pension)

Retirement % of normal pension Retirement % of normal pension

age age

55 40% 63 88% (100% with Trustee consent)

56 46% 64 94% (100% with Trustee consent)

57 52% 65 100%

58 58% 66 100%

59 64% 67 100%

60 70% 68 100%

61 76% 69 100%

62 82% (100% with 30 70 100%

years of membership 71 100%

in Local 804 and

Trustee consent)

Unreduced monthly DB pension at age 63

Member Age 63

Contributions received to December 31, 2002: $50,000

Contributions received between January 1, 2003, and

December 31, 2003: $5,000

Contributions received from January 1, 2004: $100,000

Monthly pension at age 65:

3% x $50,000 $1,500

2.5% x $5,000 $125

1.25% x $100,000 $1,250

Total unreduced monthly pension $2,875

Pension reduction 0% because Trustee consent given $0

Total permanent monthly pension $2,875

17


IF YOU STOP WORKING BEFORE AGE 65, YOU ALWAYS HAVE THE

OPTION TO DELAY STARTING YOUR PENSION UNTIL YOU REACH AGE 65

(OR AS LATE AS AGE 71) — IN WHICH CASE, NO REDUCTION WILL APPLY.

Reduced monthly DB pension at age 59

Member Age 59

Contributions received to December 31, 2002: $50,000

Contributions received between January 1, 2003, and December 31, 2003: $5,000

Contributions received from January 1, 2004: $100,000

Monthly pension at age 65:

3% x $50,000 $1,500

2.5% x $5,000 $125

1.25% x $100,000 $1,250

Total unreduced monthly pension $2,875

Pension reduction ($2,875 x 36%) ($1,035)

Total permanently reduced monthly pension $1,840

If you retire after age 65

If you postpone your retirement and continue to work in the trade after

age 65, your employer contributions will continue as usual and your pension

will continue to grow. By law, you must start taking your pension by the end

of the year in which you reach age 71.

Example 2: If you retire between ages 55 and 65 (and don’t qualify for an unreduced pension)

Your monthly pension is calculated the same way as a pension at age 65,

but is then reduced because you will receive more payments than someone

who retires later. The reduction is 6% for each year that your retirement

date falls before your 65th birthday.

18

YOUR DB PAYMENT OPTIONS

Choosing a pension that is right for you

When you retire from Local 804, you have several different DB pension

payment options to choose from. The option you select will have an impact

on the amount of your monthly pension and how much (if anything) your

spouse or benefi ciary receives after your death. Here are some things you

should consider before you choose your payment option:

1. You cannot change your payment option once you begin receiving your

pension, even if your personal family situation changes.

2. Whatever form of pension you choose, your pension will always be paid

for at least as long as you live. If you like, you can add a guarantee period

that will provide a certain number of monthly payments as a minimum,

even if you die before the end of the guarantee period.

3. The pension amount you see on your statement is the amount you

would receive at age 65 if you chose a lifetime pension with a 10-year

(120-month) guarantee period. The amount of pension you actually

receive will be adjusted up or down depending on which payment

option you choose (higher if you choose a shorter guarantee, lower if

you choose a longer guarantee or if you have a spouse).

4. If you have a spouse: Ontario pension law states that you must choose a

form of payment that provides a continuing pension to your spouse in

the event of your death. This pension must be at least equal to 60% of

your pension, but you can increase it to 80% or 100% if you wish. Your

pension is reduced to provide this spouse’s pension based on your age,

your spouse’s age and whether you choose to continue 60%, 80% or

100% of your pension to your spouse. If your spouse doesn’t need this

pension, he or she can refuse it by signing a legal waiver before your

pension begins. You can then choose any of the other available

payment options.

5. If you don’t have a spouse or your spouse signs a waiver: your pension

will be paid for your lifetime with your choice of no guarantee period, or

a fi ve-, 10- or 15-year guarantee. If you die within the guarantee period,

your pension will continue to be paid to the benefi ciary(ies) of your

choice until the guarantee period ends.

6. If you retire before age 65 and want a different option: you may wish to

consider taking a “notched option” that increases your pension from the

date you retire until you reach age 65, which is the date your Old Age

Security (OAS) and unreduced Canada Pension Plan (CPP) benefi ts

begin. At age 65, your pension is reduced to a level amount that

continues for the rest of your life.


YOU CANNOT

CHANGE YOUR

PENSION OPTION

ONCE YOU BEGIN

RECEIVING YOUR

PENSION.

LOG ON TO

804PENSION.COM,

YOUR ONLINE

PENSION

CALCULATOR, FOR

A PERSONALIZED

ESTIMATE OF

YOUR PENSION AT

RETIREMENT.

19


PENSION PAYMENT OPTION DESCRIPTION MONTHLY PENSION

Lifetime only Pension is paid for your lifetime $2,084 only with no death benefi ts.

Lifetime only with Higher pension paid to age 65, then reduced $2,510 up to age 65, notched option for the rest of your lifetime with no then reduces to death benefi ts. $1,993 at age 65

Life with a fi ve-year Pension is paid for your lifetime. If you die $2,061guarantee before 60 monthly payments have been made, the rest will be paid to your benefi ciary or estate.

Life with a fi ve-year Higher pension paid to age 65, then reduced $2,488 up to age 65, then guarantee and for the rest of your lifetime with lower amount reduces to $1,971 atnotched option continuing to your benefi ciary for remaining age 65 with payments of guarantee period if you die within $1,971 continuing to your the fi rst 60 months. benefi ciary for remaining guarantee period

Life with a 10-year guarantee Pension is paid for your lifetime. If you die $2,000 before 120 monthly payments have been made, the rest will be paid to your benefi ciary or estate.

Life with a 10-year guarantee Higher pension paid to age 65, then reduced $2,430 up to age 65, thenand notched option for the rest of your lifetime with lower amount reduces to $1,913 at continuing to your benefi ciary for remaining age 65 with payments of guarantee period if you die within the $1,913 continuing to your fi rst 120 months. benefi ciary for remaining guarantee period

Life with a 15-year guarantee Pension is paid for your lifetime. If you die $1,915 before 180 monthly payments have been made, the rest will be paid to your benefi ciary or estate.

Life with a 15-year guarantee Higher pension paid to age 65, then reduced $2,349 up to age 65, thenand notched option for the rest of your lifetime with lower amount reduces to $1,832 at continuing to your benefi ciary for remaining age 65 with payments of guarantee period if you die within the $1,832 continuing to your fi rst 180 months. benefi ciary for remaining guarantee period

60% spouse’s pension Pension paid for your life with 60% continuing $1,815 with $1,089 to your spouse for his/her lifetime after continuing to your your death. spouse



You can take a reduced pension and add a guarantee period to any of the spouse’s pension options. If you die within the guarantee period, your spouse will receive the same amount of pension that you were receiving for the remainder of the period. After that, your spouse will receive 60%, 80%, or 100% of your pension — depending on which option you choose at retirement.

EXAMPLE

Comparing pension payment options

This example is based on the following:

Member’s age: 63

Spouse’s age: 60

Monthly pension: $2,000 paid for life with a 10-year guarantee

20


Understanding the impact

The table on page 19 gives you an example of the impact that the different

pension options might have for someone who retires at age 63 with a

monthly pension of $2,000 and a 60-year-old spouse. Of course, actual

amounts will vary depending on your age and interest rates in effect when

you retire. Go to www.804pension.com for a personal pension estimate.

Remember, if you have a spouse when you retire, you must choose an

option that provides a survivor’s benefi t of at least 60% of your pension,

unless your spouse has signed a legal waiver giving up the right to survivor

benefi ts under the plan.

Cash benefi t

If your pension qualifi es as a “small” pension under Ontario pension law,

you will receive the full value of your pension in the form of a single, taxable

payment instead of in monthly instalments. In 2010, a small pension is

defi ned as less than about $79 per month.

Who qualifi es as your spouse?

Ontario pension law defi nes a “spouse” as the person who is living with

you and is:

> married to you when you retire or die; or

> not married to you but has been living with you in a conjugal relationship

continuously for at least three years; or

> in a relationship of some permanence if you are the parents of your own

or an adopted child as defi ned in the Family Law Act, 1986 (Ontario).

If you do not have a spouse when you apply for your pension, you must

confi rm this on your pension application. If you have an ex-spouse when

you retire, you must provide a copy of the divorce settlement or separation

agreement to Union Benefi ts. If you have a new spouse after your pension

begins, he or she will not qualify for benefi ts after your death (unless named

as the benefi ciary for any remaining guaranteed payments).

21

PART 2YOUR DEFINED CONTRIBUTION (DC) PENSION and VOLUNTARY ACCOUNTS

22

EARNING YOUR DEFINED CONTRIBUTION

(DC) PENSION

Contributions

In addition to making a defi ned benefi t (DB) contribution for each hour

that you are paid, your employer is also required to contribute to your

defi ned contribution (DC) account on your behalf. The exact amount of the

DC contribution is set out in the collective agreement. You are not required

(or permitted) to contribute to your DC account.

At the end of each month, each employer for whom you have worked

reports your hours and sends a cheque to Union Benefi ts. These DC

contributions are deposited in your personal DC pension account with

Standard Life and invested in your choice of investment options (see

page 29). At retirement, the money in your account may be used to buy

a monthly retirement income (an annuity from an insurance company)

or transferred to a locked-in retirement account (LIRA) or life income

fund (LIF).

Keep in mind that 3% of the DC contributions received by the plan are used

to pay the DC plan’s operating expenses. This means, for every $100 of DC

contributions received, $3 will be held in the trust fund to pay the DC plan’s

operating expenses, and $97 will be credited to your DC pension account.

Investing your DC contributions

The DC plan gives you access to a range of investment options, including

Canadian and international equity (stock) funds, bond and money market

funds, and guaranteed interest certifi cates. Alternatively, the plan comes

equipped with a range of pre-selected investment portfolios. All you have

to do is choose the one that suits you best based on your age and risk

tolerance.

If you don’t choose your investment options, your contributions will auto-

matically be invested in a default fund chosen by the Trustees. For more

information about your investment choices, see page 29, or go directly to

the VIP Room at www.standardlife.ca. You will need to know your user ID

and PIN. If you don’t know your log-in information, simply pick up the

phone and call 1-800-242-1704, extension 5020. A Standard Life customer

service representative will give you your user ID and PIN over the phone —

or email them to you if that’s your preference.

THE SIZE OF YOUR

DC ACCOUNT

DEPENDS ON:

• CONTRIBUTION

RATES DURING

THE PERIOD YOU

ARE WORKING,

• THE NUMBER OF

HOURS YOU WORK

DURING YOUR

CAREER, AND

• HOW MUCH

INVESTMENT

INCOME YOU

HAVE EARNED

OVER THE YEARS.

23

YOUR DC PAYMENT OPTIONS

When you retire from Local 804, you will choose how your DC account is

paid. The option you select will have an impact on the amount of your

monthly income, as well as how much (if anything) your spouse or

benefi ciary receives after your death.

The payment options for your DC pension account fall into two basic

categories:

1. Use your account to buy a lifetime pension (an annuity) from Standard

Life or another Canadian insurance company. You will have several

annuity options to choose from. See below for details.

2. Transfer your account tax free to a locked-in retirement account (LIRA)

or life income fund (LIF). See page 25 for details.

We highly recommend that you obtain advice from a qualifi ed, independent

fi nancial advisor when choosing which of these options is best for you.

If you are looking for an advisor, Advocis, the Financial Advisors Association

of Canada, is a good place to start (www.advocis.ca).

Buying an annuity (lifetime pension)

You can buy a life annuity from almost any Canadian life insurance company

— and it pays to shop around. Here are some things you should know:

1. You cannot change your annuity option once you begin receiving your

payments from the insurance company, even if your personal family

situation changes.

2. Whatever form of pension you choose, your payments will always

continue for at least as long as you live.

3. If you like, you can add a guarantee period that will ensure a certain

number of monthly payments, even if you die.

4. The amount of pension you receive will depend on:

• your age when you buy the annuity,

• interest rates in effect at the time,

• how much money you have in your DC account, and

• the payment option you select.

5. If you have a spouse: Ontario pension law states that you must choose a

form of payment that provides a continuing pension to your spouse in

the event of your death. This pension must be at least 60% of your

WE HIGHLY

RECOMMEND THAT

YOU OBTAIN ADVICE

FROM A QUALIFIED,

INDEPENDENT

FINANCIAL ADVISOR

WHEN CHOOSING

WHICH PAYMENT

OPTION IS BEST

FOR YOU.

YOUR DEFINED CONTRIBUTION PENSION

24

pension, but you can increase it to up to 100% if you wish, and may also

include a guarantee period. Your pension is reduced to provide this

spouse’s pension based on your age, your spouse’s age and whether you

choose to continue 60% or more of your pension. If your spouse doesn’t

need this pension, he or she can refuse it by signing and submitting a

legal waiver before your payments begin. You can then choose any of

the other pension options, or you can transfer the value of your account

to a life income fund.

6. If you don’t have a spouse or your spouse signs a waiver: You can

choose to have your pension paid for your lifetime only (with no death

benefi ts), or you can choose to have your pension paid for a guaranteed

period of fi ve, 10 or 15 years. If you die during the guarantee period, your

monthly pension will continue to your chosen benefi ciary(ies) for the

remaining guarantee period.

Comparing annuity payment options

The table below gives you an example of the impact that the different

payment options might have for someone who buys an annuity at age 65

with a DC account balance of $50,000 and a 62-year-old spouse. Of course,

actual amounts will vary depending on your age and interest rates in effect

when you retire. Contact any Canadian insurance company or use the

Retirement Calculator at www.standardlife.ca to get a personal estimate.


Lifetime only Pension is paid for your lifetime. $337

There are no death benefi ts.

Life with a fi ve-year guarantee Pension is paid for your lifetime. If you die $334

before 60 monthly payments have been made,

the rest will be paid to your benefi ciary or estate.

Life with a 10-year guarantee Pension is paid for your lifetime. If you die before $324

120 monthly payments have been made, the rest

will be paid to your benefi ciary or estate.


REMEMBER, YOUR

DC PENSION IS

ONLY PART OF

YOUR RETIREMENT

BENEFITS FROM

LOCAL 804;

YOU WILL ALSO

RECEIVE A DB

PENSION FROM

THE PLAN.

EXAMPLE

Comparing annuity payment options

This example is based on the following:

Member’s age: 65

Spouse’s age: 62

DC account balance: $50,000

25


Life with a 15-year guarantee Pension is paid for your lifetime. If you die before $308

180 monthly payments have been made, the rest

will be paid to your benefi ciary or estate.

60% spouse’s pension Pension is paid for your life with 60% $291

continuing to your spouse for his/her

lifetime after your death.

80% spouse’s pension Pension is paid for your life with 80% continuing $279

to your spouse for his/her lifetime after

your death.

100% spouse’s pension Pension is paid for your life with 100% $267

continuing to your spouse for his/her

lifetime after your death.

Other annuity options are available.

THIS IS AN EXAMPLE ONLY. YOUR ACTUAL DC PENSION WILL DEPEND ON YOUR ACCOUNT

BALANCE, YOUR AGE, THE AGE OF YOUR SPOUSE (IF YOU HAVE ONE), AND THE INTEREST

RATES IN EFFECT WHEN YOU BUY THE ANNUITY.

Transferring your DC pension to another registered account

You can transfer your DC account to one of the following registered

accounts:

1. a locked-in retirement account (LIRA), or

2. a life income fund (LIF).

Which one is a better choice for you depends on when you want to start

taking a retirement income. A LIRA works like a registered retirement savings

plan (RRSP) except your funds are “locked in” and cannot be withdrawn

except to provide a retirement income.

When you’re ready to take a retirement income from your LIRA (no later

than the end of the year in which you turn 71), you can convert it to a LIF.

A LIF works exactly the same way as a LIRA, but has annual minimum and

maximum withdrawal limits. You can also transfer your Local 804 DC account

directly to a LIF, but you must start making withdrawals by the end of the

second year after you open your LIF (no earlier than age 55). If you have a

spouse, he or she must waive the right to a pension under the plan before

you can transfer to a LIF.


EXAMPLE (continued)

26

Within the fi rst 60 days of transferring your funds to a LIF, you can “unlock”

and withdraw up to 50% of your funds in cash, or transfer the amount to

another “unlocked” account such as an RRSP or registered retirement

income fund (RRIF). If you don’t apply within the fi rst 60 days of the

transfer, there will be no other opportunity to unlock these funds.


WITHIN 60 DAYS OF

OPENING A LIFE

INCOME FUND (LIF),

YOU HAVE THE OPTION

OF WITHDRAWING

UP TO 50% OF THE

BALANCE.

FOR INFORMATION ON HOW TO APPLY FOR YOUR DC PENSION, PLEASE

REFER TO THE RETIRING SECTION UNDER LIFE EVENTS ON PAGE 37.

Buying an annuity (lifetime pension) vs. transferring to a LIRA or LIF

Pros Cons

Buy an annuity > Your pension is guaranteed, > Your pension does not increase, even if markets go down. even if markets go up. > Your pension is paid for life. > The lower the interest rates are > You can add a guarantee period at the time you buy an annuity, that will provide survivor benefi ts the smaller your annuity will be. to your benefi ciary(ies) after your death and/or a lifetime pension for your spouse.

Transfer to a locked-in > If you retire when markets > If your investments go down retirement account are down, transferring to a in value, so does your pension.or life income fund LIRA or LIF might give you > You run the risk of outliving an opportunity to regain your savings. market losses. > You’ll pay transaction fees and > When you transfer to a LIF, you expenses to have your money can unlock up to 50% of your managed or to manage it yourself. savings to spend any way you like. > If you retire when interest rates are low (which means your pension will be smaller), transferring your account to a LIRA or LIF might give you an opportunity to wait until interest rates go up before converting to an annuity. > You can convert your LIRA or LIF to an annuity at any time.

27

VOLUNTARY ACCOUNTS

Group RRSP and TFSA basics

As a member of Local 804, you have the option of making voluntary

contributions to a group registered retirement savings plan (RRSP) and/or

a group tax-free savings account (TFSA) through Standard Life. These

accounts are not part of the pension plan, but are provided to allow you to

set aside extra savings — and save on taxes. All contributions are made by

you; your employers do not contribute any money to these accounts.

You decide how much you want to contribute — up to certain limits (see

Contribution limits below) — and how to invest these contributions.

The group RRSP and TFSA are similar to a personal savings account you

may hold (at a bank, for example), but offer several tax advantages over

your personal savings account. See Tax and your voluntary accounts on the

following page for more information.

You can make contributions through the Standard Life online contribution

tool at www.standardlife.ca, by personal cheque, or by providing Standard

Life with pre-authorized chequing access. You can also transfer funds into

the group RRSP from your personal RRSP or from the pension plan of a

previous employer.

One of the key advantages of your Local 804 voluntary group accounts is

that they give you access to the same investment options that you have for

your DC account (see page 29). These investment options often aren’t

available to individual investors. Also, because of Union Benefi t’s group

purchasing power, you pay lower investment management fees than you

normally would for an individual account.

Under current tax law, you must convert, transfer or withdraw the funds in

your RRSP by the end of the year in which you reach age 71. Unlike the

RRSP, the TFSA allows you to accumulate savings beyond age 71.

Contribution limits

RRSP

The Canada Revenue Agency (CRA) places a limit on how much you can

save in your RRSP each year. Here’s how that limit is calculated:

> 18% of your previous year’s earned income or the dollar limit shown in

the box on the following page (whichever is less),

> minus the total contributions to your DB and DC pension for the

previous year (these contributions are reported on your annual T4 slip as

a “pension adjustment”),

> plus any unused contribution room from previous years.

THE GROUP RRSP

AND TFSA OFFER

SEVERAL TAX

ADVANTAGES OVER

A PERSONAL

SAVINGS ACCOUNT.

SOME KEY

ADVANTAGES TO

YOUR LOCAL 804

VOLUNTARY GROUP

ACCOUNTS INCLUDE:

• ACCESS TO

INVESTMENT

OPTIONS THAT

OFTEN AREN’T

AVAILABLE TO

INDIVIDUAL

INVESTORS, AND

• LOWER

INVESTMENT

MANAGEMENT FEES

DUE TO UNION

BENEFITS’ GROUP

PURCHASING

POWER.

28

Tax year Dollar maximum

2010 $22,000

2011 $22,450

2012 Indexed to infl ation

Contributions made in the fi rst 60 days of the year can be applied against

either the current or previous year’s income taxes.

It’s up to you to keep track of your RRSP contributions to avoid over-

contributing. Tax law allows a lifetime over-contribution of $2,000.

Contributions above this limit carry a penalty.

TFSA

You can contribute up to $5,000 per year to the voluntary tax-free savings

account (TFSA). This annual contribution limit increases in line with infl ation

(in $500 increments). If you don’t make a full contribution in a given year,

you can apply this amount to your contributions in the future. Any

contributions above your available room (including carry-forward) are

subject to a penalty tax of 1% per month.

You can withdraw money from your TFSA at any time. Any amounts that

you withdraw in a year will be added to your contribution room for the

following year.

Tax and your voluntary accounts

RRSP

RRSP contributions are tax deductible, which helps to reduce the amount of

income tax you pay each year. Your contributions and investment earnings

are tax sheltered as long as the money remains in an RRSP or other

registered retirement account. You can withdraw the money in your RRSP

account at any time (and pay tax) or transfer it tax free to another

registered account of your choice.

TFSA

Unlike RRSP contributions, your contributions to a TFSA are not tax

deductible. However, any income you earn on your TFSA is not taxable

— and you won’t have to pay taxes (including capital gains) when you

withdraw money from your account.

Bottom line: the TFSA does not offer you the immediate tax relief provided

by an RRSP. It does, however, give you an opportunity to build additional

tax-preferred savings — as well as some added fl exibility.

VOLUNTARY ACCOUNTS

YOUR RRSP

CONTRIBUTION LIMIT

FOR THE CURRENT

YEAR APPEARS AT

THE BOTTOM OF

THE NOTICE OF

ASSESSMENT YOU

RECEIVED FROM THE

CRA AFTER IT

PROCESSED LAST

YEAR’S TAX RETURN

FORM. THE TAX

INFORMATION PHONE

SERVICE (TIPS) AT

1-800-267-6999 CAN

ALSO TELL YOU

YOUR CURRENT

CONTRIBUTION LIMIT.

29

Investment options

You can invest your DC pension account and voluntary accounts in any or

all of a select group of professionally managed funds available through

Standard Life. These funds are chosen and monitored by the Trustees

with the help of a professional investment consultant, and are usually only

available to institutional investors.

It is important to note that because of volume purchasing with Standard

Life, you pay lower investment management fees than you would pay for

investment funds available from retail fi nancial institutions (such as banks).

The current investment options available to you through Standard Life

include:

1. A balanced fund — invests in a combination of common stocks, fi xed

income and short-term investment vehicles.

2. A bond fund — invests in fi xed income, typically with the objective of

providing stable income with minimal capital risk.

3. Canadian equity (stock) funds — invest in Canadian securities and

stocks, usually common stocks.

4. Global equity (stock) funds — invest in securities and stocks anywhere

in the world including Canada and the U.S.

5. International equity (stock) funds — invest in securities and stocks

anywhere in the world except Canada and the U.S.

6. U.S. equity (stock) funds — invest in U.S. securities and stocks, usually

common stocks.

7. Guaranteed interest certifi cates — provide guaranteed returns for terms

of one, two, three, four or fi ve years.

8. A money market fund — invests in short-term (one day to one year) debt

obligations such as treasury bills, certifi cates of deposit, and commercial

paper.

9. A real estate fund — actively invests in a diversifi ed mix of offi ce, retail,

industrial and residential properties across Canada.

The plan also comes equipped with a range of pre-selected investment

portfolios. They include conservative, moderate, balanced, advanced and

aggressive mixes based on how long you expect your money to be invested.

All you have to do is choose the one that suits you best based on your age

and risk tolerance.

INVESTMENT OPTIONS

RRSP

CONTRIBUTIONS

ARE TAX

DEDUCTIBLE, WHICH

HELPS TO REDUCE

THE AMOUNT OF

INCOME TAX YOU

PAY EACH YEAR.

30

If you don’t choose your investments for your DC plan, RRSP or TFSA

contributions, they will automatically be invested in a conservative

pre-selected investment mix, based on your age.

For more information about the investment options available to you, go to

the VIP Room at www.standardlife.ca. You will need to know your user ID

and PIN. Once you log in, you’ll be able to:

> view your holdings and check your rate of return;

> complete transactions, such as changing your investment choices;

> plan your fi nancial future using Standard’s online retirement income

calculator and other investment tools.

DON’T KNOW YOUR PIN?

SIMPLY PICK UP THE PHONE AND CALL STANDARD LIFE AT 1-800-

242-1704, EXTENSION 5020. A CUSTOMER SERVICE REPRESENTATIVE

WILL GIVE YOU YOUR USER ID AND PIN OVER THE PHONE — OR EMAIL

THEM TO YOU IF THAT’S YOUR PREFERENCE.

VOLUNTARY ACCOUNTS

DON’T FORGET

TO CHOOSE YOUR

INVESTMENTS!

IF YOU DON’T

PROVIDE

INVESTMENT

INSTRUCTIONS,

CONTRIBUTIONS

WILL

AUTOMATICALLY

BE INVESTED IN

A CONSERVATIVE

PRE-SELECTED

INVESTMENT MIX,

BASED ON

YOUR AGE.

31

VOLUNTARY ACCOUNTS

Key differences between your Local 804 DC pension account, your RRSP and TFSA

DC pension account

How it works For each hour that you are paid, your employer makes a contribution to your personal DC pension account on your behalf. You decide how your money is invested. You are not required (or permitted) to contribute to this account.

Taxation Contributions made by your differences employer are not included in your taxable income. Your account, including investment earnings, remains tax free until it is used to provide a retirement income.

Locking-in The money in your accountdifferences can only be used to provide a retirement income and cannot be withdrawn until you leave the plan or retire. When you leave or retire, you can use your account to buy an annuity from an insurance company, or you can transfer your savings to another registered account.

RRSP

You can make voluntary contributions to your group RRSP account, up to certain limits, and decide how your money is invested. Your employer does not contribute to the group RRSP.

Contributions are tax deductible (up to the limits set by the Canada Revenue Agency), which helps to reduce the amount of income tax you pay each year. These contributions and investment earnings are tax sheltered as long as the money remains in the plan.

You can withdraw your money at any time (and pay tax) or transfer it tax free to any other registered account of your choice.

TFSA

You can make voluntary contributions to your group TFSA, up to $5,000 each year, and decide how your money is invested. Your employer does not contribute to the group TFSA.

Contributions are not tax deductible, but the investment earnings grow on a tax-free basis.

You can withdraw your money tax free at any time, or transfer it to a personal tax-free savings account of your choice.

BESIDES THE VOLUNTARY TFSA WITH LOCAL 804, YOU CAN HOLD OTHER

PERSONAL TAX-FREE SAVINGS ACCOUNTS. KEEP IN MIND, HOWEVER, YOUR

TOTAL TFSA CONTRIBUTIONS CANNOT EXCEED THE ANNUAL LIMIT.

32

LIFE EVENTS,

GOVERNMENT PROGRAMS

AND DEFINITIONS

33

LIFE EVENTS

If you’re like most people, you probably don’t give your pension a lot of

thought — until something happens that makes you reconsider your

fi nancial future. This section is a guide to what happens to your retirement

program benefi ts when your personal circumstances change.

Death

If you die before your pension begins, but after completing 24 straight

months of plan membership, the full value of the DB pension you have

earned plus your DC account balance will be paid to your spouse.

If you do not have a spouse, or your spouse has signed a waiver giving up

the rights to survivor benefi ts, this money will be paid to your benefi ciary or

estate as a taxable cash payment.

If you have a spouse, he or she may:

> transfer the money tax free to an RRSP,

> transfer it tax free to an insurance company to buy an annuity

(a lifetime income),

> take it as a taxable cash payment, or

> leave the DB pension and DC account in the plan to collect at a

later date.

If your spouse does not choose any of the above payment options within

60 days, the money will be used to buy an annuity (a lifetime pension) from

an insurance company on his or her behalf.

The value of your voluntary accounts, if any, will be paid to your named

benefi ciary (or estate). Unlike your DC account, there are no special rules

about having to name your spouse as your benefi ciary.

Naming a benefi ciary

If you have a spouse, he or she is the benefi ciary of your DB and DC pension

by law. If you don’t have a spouse, or your spouse has waived the right to

benefi ts, you can name anyone you wish to receive death benefi ts under

the plan.

You will be asked to name a benefi ciary when you complete your enrolment

forms. You may change your benefi ciary at any time by completing a new

enrolment form.

34

If you don’t name a benefi ciary, your benefi t will be paid to your estate —

unless you make specifi c reference to it in your will. If the benefi t is paid to

your estate, it may be subject to taxes, probate fees and creditor claims.

Naming a child as benefi ciary

If you decide that you would like to name your child as a benefi ciary, there

are some important steps you need to take. First of all, if you have a spouse,

he or she must sign the waiver referred to earlier, giving up his or her right

to a pension benefi t. Next, you should appoint a trustee or guardian to look

after your child’s benefi ts until he or she reaches age 18 (a lawyer can help

you choose and appoint this person).

If you don’t appoint a trustee, the plan can pay the benefi t to a legal

guardian who has been appointed by the court. If no guardian is appointed,

current Ontario law states that any amount above $10,000 must be paid to

the Accountant of the Superior Court who will hold the money until your

child reaches age 18. At that point, your child can withdraw the funds by

fi ling an affi davit proving his or her age; however, an administration fee will

be charged.

Disability

You will continue to be a member of the plan if you are disabled and

receiving disability benefi ts from the Workplace Safety and Insurance Board

(WSIB). Employer contributions are required to continue for up to 12

months if you are receiving WSIB benefi ts. These contributions are based

on 150 hours per month.

You can choose whether or not to contribute to your voluntary accounts

during your disability.

Divorce or separation

Your pension is considered a family asset. This means that any pension you

earn while you and your spouse are married or living as a common-law

couple may have to be divided based on the legal separation or divorce

agreement.

Pension law says that your ex-spouse is eligible to receive up to 50% of the

pension you earned while the two of you were considered “spouses.” (See

page 42 for the defi nition of “spouse” under pension law.) Even if you’re

not legally married, you may still have to consider your pension in any

division of assets. Your ex-spouse cannot begin receiving his or her share of

your pension until you leave the plan, retire, reach age 65, or die —

LIFE EVENTS

35

whichever comes fi rst. At that time, your ex-spouse has the same payment

options as you would have if you left the plan with 24 or more straight

months of plan membership (see Leaving the plan below).

You must inform Union Benefi ts of any change in your marital status. You

should also update your benefi ciary information. These updates must be

made in writing to provide Union Benefi ts with the legal authority to make

the change.

Your voluntary accounts may be considered a family asset, but are not

governed by pension law described above.

Leaving the plan

You can choose to leave the plan before retirement if no employer

contributions have been made for you during the previous 24 straight months.

You will automatically leave the plan if you:

> discontinue your membership in Local 804, or

> transfer your pension benefi ts to another local, or

> retire.

If your plan membership ends, your options for receiving your DB and DC

benefi ts will depend on how long you’ve been a plan member. Here’s how

it works.

You can withdraw the money in your group RRSP and TFSA whenever you leave the plan.

LIFE EVENTS

If you have less than You do not qualify to receive any DB or DC benefi ts from the plan.

24 straight months of

plan membership

If you have 24 or more You have the following options for receiving the “cash value” of your DB pension

straight months of and your DC account balance:

plan membership > transfer to a locked-in retirement account (an RRSP that does not allow

withdrawals);

> transfer to a life income fund (LIF), provided you are at least 54 years old;

> transfer to another union’s registered pension plan (provided that plan will

accept the transfer);

> transfer to another IBEW Local pension plan (provided you remain in the trade

and there is a transfer agreement in place); or

> buy an annuity (a lifetime pension) from an insurance company.

You also have the option to keep your DB pension benefi ts in the plan until

retirement. You must, however, start your pension by the end of the year in

which you turn age 71. You cannot keep your DC pension benefi ts in the plan.

Your options for receiving your DC account balance are shown above.

36

Marriage or a new partner

Because your spouse has certain rights under the pension plan, it is very

important that you keep Union Benefi ts informed of any changes in your

marital status. Your voluntary accounts are not governed by pension law.

Maternity or parental leave

Employer contributions are required to continue for up to 12 months while

you are away on maternity or parental leave as defi ned under the

Employment Standards Act of Ontario. These contributions are based on

144 hours per month. The total of all of your periods of maternity and

parental leave is limited to three years.

You can choose whether or not to contribute to your voluntary accounts

during your maternity/parental leave.

Moving

If you leave Ontario to live in another province or country, your pension

benefi ts under this plan are still governed by Ontario pension law.

Retiring

Once you decide to retire, you must ensure that all of your DB and DC

contributions have been received by Union Benefi ts. There are separate

procedures to apply for your DB pension and your DC pension.

Applying for your DB pension

To give Union Benefi ts enough time to process your application and begin

payments, you should apply for your DB pension at least two months before

you plan to retire.

1. Download a pension application form from the member section of

www.unionbenefi ts.ca, or pick up a pension application form from

Union Benefi ts, or call and ask to have a form mailed to you.

2. Submit your completed application to Union Benefi ts along with any

required documents, including proof of age, proof of marital status,

proof of initiation, etc.

3. Union Benefi ts will send you an estimate of the DB pension you would

get under each of the options and a form that allows you to select your

option.

4. Choose an option, sign the form (include a spouse’s waiver, if applicable),

and return it to Union Benefi ts.

LIFE EVENTS

YOU MUST NOTIFY

UNION BENEFITS IN

WRITING IF YOU

SEPARATE, DIVORCE,

CHANGE YOUR

SPOUSE, OR MOVE.

37

If, for any reason, all contributions were not received when you apply for

your DB pension, the Trustees may pay a temporary retirement benefi t until

the value of your actual pension can be determined. At that time, the

Trustees will pay you any necessary adjustments.

Applying for your DC pension

1. Contact Union Benefi ts or the Local Union Hall informing them that you

would like to retire. You must provide them with the date of your last

contribution and the date you wish to retire. Your retirement date should

be about 10 days before the date on which you want to transfer your

DC account balance. This will give Standard Life time to send your

retirement options to you.

2. Union Benefi ts will send a notice of retirement to Standard Life.

Standard Life will then send you an estimate of the monthly DC pension

you would get under each of the payment options and a form that allows

you to select the option that’s right for you. You can either choose one

of the Standard Life annuity options, or transfer your account out of the

plan to a LIRA or LIF, or use it to purchase an annuity on your own from

another Canadian insurance company.

3. Choose an option, sign the form (include a spouse’s waiver, if applicable),

and return it to Standard Life.

Before you sign your DB and DC retirement application forms, it is very

important that you fully understand your payment options because you

cannot change your option once you begin receiving your pension. Even if

you have never used a fi nancial advisor before, we recommend that you fi nd

one to help guide you through the decision-making process. If you are

looking for an advisor, Advocis, the Financial Advisors Association of

Canada, is a good place to start (www.advocis.ca).

If you complete your pension applications, then die before your fi rst

payment can be made, the plan will pay death benefi ts to your spouse or

benefi ciary as if you had not applied for your pension. Please refer to the

Death section on page 33 for more details.

LIFE EVENTS

UNION BENEFITS, 151 FROBISHER DR., SUITE E220, WATERLOO N2V 2C9.

PHONE: 519-725-8818 OR TOLL-FREE: 1-800-265-2568, OR FAX: 519-725-9362

WWW.UNIONBENEFITS.CA

38

Pension income splitting

When you fi le your annual income tax return, you can “split” your pension

income with your spouse. This means that up to 50% of the pension income

you receive from the Local 804 pension plan can be reported by your

spouse as income on his or her tax return.

Pension income splitting doesn’t affect how or to whom your pension

income is paid. It’s simply a way for you to reduce your individual income

taxes. All you need to do is submit Form T1032, Joint Election to Split

Pension Income, available from the Canada Revenue Agency, and complete

an additional line on both your own and your spouse’s tax returns.

Splitting your pension income may make sense if your spouse is in a lower

tax bracket than you. Keep in mind, however, that you can split your pension

income only if:

> you and your spouse are living together, and

> you are at least 65 years of age.

Before making any decision about splitting your pension income, it’s best to

talk to a fi nancial advisor or accountant.

Receiving your pension

Your DB pension is deposited directly into your bank account at the start of

each month. To avoid missing payments, please make sure to notify Union

Benefi ts of any changes in your address or banking arrangements. If you

buy an annuity with your DC pension account, you will need to make

payment arrangements with your fi nancial institution.

Tax and your pension

Pension payments are taxable. You can choose the amount of tax to be

deducted when you complete the pension application forms. If you choose

0%, you are responsible for paying the tax at the end of the year when

you fi le your return. You can increase or decrease the amount of tax to

be deducted by contacting Union Benefi ts and completing the

appropriate form.

Receiving your voluntary accounts

When you retire, you may:

> Convert some or all of your group RRSP savings to a registered

retirement income fund (RRIF). A RRIF works exactly the same way as

an RRSP, but requires you to make a minimum withdrawal each year.

> Transfer some or all of your savings to an insurance company to buy an

annuity that will pay you a regular income.

LIFE EVENTS

MAKE SURE TO

NOTIFY UNION

BENEFITS OF ANY

CHANGES IN YOUR

ADDRESS OR

BANKING

ARRANGEMENTS.

39

Under current tax law, you must convert, transfer or withdraw the funds in

your RRSP by the end of the year in which you reach age 71.

When you retire, your TFSA will be paid to you in cash (tax free).

Terminal illness

If you are terminally ill, you may withdraw the pension benefi ts you have

earned as a single payment before you reach retirement age. To do this,

you must:

> obtain a written statement from your doctor confi rming that you have less

than two years to live;

> if you have a spouse, get written consent (signed within 60 days before

you submit your application).

The withdrawal is taxable and must be approved by the Trustees.

You can withdraw the money in your RRSP or TFSA at any time. RRSP

withdrawals are taxable; TFSA withdrawals are not.

Transferring to/from another local

If you temporarily transfer to/from a local that has a reciprocal agreement

with Local 804, the contributions you earn in the other local will be applied

directly to your pension in your home local.

If you permanently transfer to/from a local that has a reciprocal agreement

with Local 804, the full “cash value” (see page 41 for defi nition) of the

pension you have earned can be transferred to your new home local.

Working and collecting a pension

By law, you cannot earn additional pension benefi ts while collecting a

pension income from the same plan. If you work in the trade after you start

your pension, your pension will continue as usual. Any additional employer

contributions made on your behalf during your re-employment will be

deposited directly to the plan to help pay plan expenses and benefi t all Local

804 members — and will not be counted towards your personal pension.

Even though you will not receive credit for these contributions, tax law

requires that they are counted against your RRSP contribution room for the

following year. This means that if you work in the trade, you will continue to

receive a pension adjustment (PA) that will be reported on your T4 by your

employer. (For more information on RRSP limits and pension adjustments,

see page 27.)

LIFE EVENTS

40

GOVERNMENT PROGRAMS

Your Local 804 pension plan is completely separate from any pension

available to you from the government. Government pension programs

include the Canada Pension Plan (CPP), Old Age Security (OAS) and, for

low-income Canadians, the Guaranteed Income Supplement (GIS).

Canada Pension Plan (CPP)

Under the current CPP system, all working Canadians outside Quebec from

ages 18 to 70 contribute to the CPP. Contributions are based on earnings

between the basic exemption and the CPP earnings limit. Your contributions

are matched by your employer.

The CPP is designed to replace about 25% of the average industrial wage.

The size of the pension you actually receive from the CPP depends on

your level of income, how long you contribute, and how old you are when

you retire.

Old Age Security (OAS)

OAS is paid in addition to CPP and provides a small pension for almost every

senior at least 65 years old. It replaces another 15% or so of the average

industrial wage, although the exact amount you get depends on how long

you have lived in Canada. Unlike CPP, which you receive regardless of your

other retirement income, OAS starts to be “clawed back” if your retirement

income exceeds a certain level.

Guaranteed Income Supplement (GIS)

GIS is paid to people receiving OAS who have an income below a certain

level. Spouses and survivors of GIS recipients may qualify for an

additional allowance.

FOR MORE INFORMATION ABOUT GOVERNMENT PENSIONS, CONTACT SERVICE

CANADA AT 1-800-277-9914 OR VISIT THE SENIORS’ SECTION OF THE WEBSITE

AT WWW.SERVICECANADA.GC.CA.

41

DEFINITIONS

Actuary

An expert in the mathematics of risk who is accredited

in Canada by the Canadian Institute of Actuaries.

Our actuaries advise our Trustees on the design and

funding of our plan based on complex calculations

involving estimates of future interest rates, retirement

ages, work levels, mortality, and other factors.

Annuity

When you buy a life annuity, you exchange a lump

sum of money for a lifetime monthly income. This

income may start anytime you choose after you reach

age 55. If you are under age 55, you may buy a

“deferred” life annuity, which pays you tax-free interest

until you reach retirement age and can convert your

savings to a life annuity. There are various forms of a

life annuity that can provide continuing payments to a

spouse or benefi ciary after your death.

Benefi ciary

This is the person you name to receive your pension

benefi ts if you die. If you have an eligible spouse,

Ontario pension law requires your spouse to be your

benefi ciary. If you do not have a spouse, you may name

anyone you want. If you do not name a benefi ciary,

death benefi ts will be paid to your estate.

You may name anyone as benefi ciary for your voluntary

accounts.

Cash value

The cash value of your plan benefi ts is sometimes

known as the “commuted value” or “transfer value.”

The cash value is the total value in today’s dollars of

the lifetime pension you have earned and would be

entitled to at age 65 if you left your benefi ts in the plan

until then. In other words, the cash value is the amount

of money that must be set aside today to pay the

pension you would begin to receive at age 65. It is an

actuarial calculation that involves many factors,

including age, pension earned to date, mortality rates,

and interest rates.

CPP

Canada Pension Plan

CRA

Canada Revenue Agency

Employer

Any company, person or organization required to

contribute to the pension plan on behalf of a member

covered under the IBEW Local 804 collective

agreement.

GIS

Guaranteed Income Supplement

LIF

Life income fund. A LIF is a retirement savings

arrangement into which locked-in pension funds can

be transferred if you are age 55 or older. You must

start withdrawing funds in the calendar year after the

LIF is set up. Minimum and maximum annual

withdrawal limits apply. Within 60 days of transferring

money into a new LIF, you can withdraw up to 50% of

the transferred amount.

LIRA

Locked-in retirement account. A LIRA works the same

way as an RRSP, except that amounts in a LIRA are

“locked in” and must be used to provide a retirement

income (cannot be withdrawn in cash except under

special circumstances). All funds in a LIRA must be

used to buy an annuity or transferred to a life income

fund (LIF) by the end of the year in which you reach

age 71.

OAS

Old Age Security

PA

Pension adjustment. The amount you are allowed to

contribute to a registered retirement savings plan

(RRSP) in any year is reduced by total employer

contributions to the pension plan for the previous

year. This reduction is called a “pension adjustment.”

Your PA is reported on your T4 and is refl ected in the

available RRSP contribution room reported on your

income tax Notice of Assessment each year.

42

DEFINITIONS

RRIF

Registered retirement income fund. One of the

transfer options for a maturing RRSP. You maintain

control over investment of funds and timing of

withdrawals, but you must make a minimum annual

withdrawal.

RRSP

Registered retirement savings plan. This is a type of

account that lets your savings grow tax free. Your

contributions to an RRSP also reduce your annual

income tax (unless contributions are transferred in

from another registered plan). If you withdraw money

from an RRSP, tax is deducted fi rst. When you retire,

you may use your RRSP to provide a retirement

income.

Spouse

Ontario pension law defi nes a “spouse” as the person

who is living with you and is:

(a) married to you when you retire or die; or

(b) not married to you but has been living with you in

a conjugal relationship continuously for at least

three years; or

(c) in a relationship of some permanence if you are

the parents of your own or an adopted child as

defi ned in the Family Law Act, 1986 (Ontario).

TFSA

Tax-free savings account. A TFSA gives you no tax

relief on contributions, but lets you save and invest

your money without having to pay tax on your

investment income or capital gains. Withdrawals are

also tax free. You can contribute up to $5,000 (in

2010). This limit is scheduled to increase (in $500

increments) in line with infl ation.

Union Benefi ts

The Local 804 pension plan administrator.

Please visit the Union Benefi ts website

(www.unionbenefi ts.ca) for more information about

your IBEW Local 804 retirement benefi ts and to

download forms.

43

THE FINAL WORD

This booklet provides a summary of your Local 804 retirement program in simple

terms. If you want more detail, you can ask to review the legal documents at the

Union Benefi ts offi ce. If there are any errors in this booklet or differences between

the information given here and the legal documents, the legal documents will apply.

The Local 804 retirement program can be changed or discontinued at any time by the

Trustees or the collective bargaining agreement.

March 2010

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