The Alberta Sheet Metal Workers’ Pension Plan (“the Plan”) was established in 1972 and is registered as a Collectively Bargained Multi-Employer Plan (CBMEP) under the Alberta Pension Benefits Act and the Canada Income Tax Act. The Plan is also classified as a Flat Defined Benefit Plan. In a defined benefit plan, benefits are determined by a formula that indicates the amount an employee will receive upon retirement. The amount the employer contributes is based on the number of hours worked by the employee at an hourly contribution rate as determined in the agreement signed between the employer and Local 8. Because of the varying contribution rates the Plan receives, employer contributions are converted to one Standard Contribution Rate (SCR) in order to calculate the monthly lifetime pension benefit.
Effective January 1, 2018 the SCR decreased to $7.54. For each SCR hour the employee receives 4.14 cents of monthly lifetime income, payable at age 60.
The Board is proud to say that our Pension Plan is one of few Canadian Multi-Employer plans that is fully funded today. The prudent and rational actions of the Board of Trustees and the Investment Managers, Phillips, Hager and North in adopting a conservative investment policy to closely match the assets to the liabilities, has enabled the Plan to ride out the recent turbulent financial times.
We are happy to report that the January 1, 2017 Valuation shows the Pension Plan is 110.7% fully funded. The Alberta Sheet Metal Workers' Retirement Trust Fund has sufficient assets to meet its future pension obligations to all Plan Members, plus 10.7%.
To prudently manage the financial assets and protect the future benefits promised, so that members can retire with financial security and dignity, and to provide the best possible pension benefits to retiring or disabled members and their beneficiaries.
To administer the Trust in a manner that is equally fair and maximizes long term benefits to all Plan Members.
Administer the Trust in the most efficient and effective manner possible. Maximize pension benefits as permitted by financial assets of the Plan, including increases for cost of living. Enhance the Plan's benefits as permitted by financial or contractual changes. Wherever possible, to provide leadership and be cohesive influence for the Sheet Metal Industry, inclusive of labour and management. To provide additional services to the Plan Members as deemed appropriate.
"Governance" is the structure and processes for overseeing, managing and administering a pension to ensure the fiduciary and other plan obligations are met.