Near Retirement

As you get closer to retirement age, you will be asked to make number of decisions and choices regarding your pension.  The resources in this section might help.

When can I retire?

  • As early as age 55, but your retirement income is an actuarially reduced amount if you retire before age 57.

  • If you retire on or after age 57, but before age 60, your monthly pension payments will be reduced by 0.25% per month for each month prior to age 60 (3% per year).

  • At age 60 there is no reduction

The reductions from age 55 to 60 reflect the extra pension payments you are expected to receive over your lifetime.

How much is my pension income reduced if I retire early?
60 years old - no reduction
59 years old - 3%
58 years old - 6%
57 years old - 9%
or 0.25% per month i.e 58 + 6 months = 4.5% reduction

56 and 55 years old - actuarially reduced (more than 0.25% per month).

If I retire early does my lifetime amount increase when I turn age 60?
No, The amount of lifetime pension on retirement continues for life.  There is no increase because you turned age 60.

What is a Supplementary Pension?
If you start receiving your pension income from this Plan before age 65, but at or after age 57, you are entitled to receive a supplementary pension benefit.  The supplementary pension is paid to age 65, or death, whichever occurs first.

The amount is equal to 50% of your earned lifetime pension as stipulated on your Annual Statement.  If you retire prior to age 60, your lifetime pension is reduced; the supplementary pension is 50% of the reduced amount.

No supplementary pension is paid the month following your 65th birthday.

If I retire early, does my supplementary pension start before age 60?
Yes, if you are 57 or older the supplementary pension is paid but at the reduced amount.  That reduced amount is paid through to age 65.

What are my retirement options?
After applying for retirement, you will receive a retirement package containing ten option choices and the lifetime monthly pension income to be paid under each option.  There are three Single Life Options and seven Joint and Last Survivor Options.

As of January 1, 1997 your Annual Statement reports your earned pension benefit as a Joint and Last Survivor option, with no reduction on death.  If you choose one of the other nine options, the amount of your retirement income will differ from your Annual Statement.  After the Administration Office receives your completed  Application for Pension, you should receive your Election of Pension Options Form in the mail within two weeks.

Are pension payments subject to income tax?
Yes, pension payments are subject to tax according to applicable tax schedules issued by the Canada Revenue Agency (CRA) or Revenu Quebec and your personal tax rate when you retire and are receiving payments.  A T4A is issued every February for you to include when filing your annual tax return.


What happens to my pension if I continue to work past age 65?

The following options are available to you: 

  1.  You can continue to contribute to the Plan and accrue additional pension benefits (pension would commence when you apply, but you must apply no later than age 71).
  2. You can elect to receive your pension income, before you leave employment.  However, if the pension plan receives contributions on your behalf after your retirement income starts and more than 175 hours of contributions are received your retirement income would stop.  When you are no longer working you would advise the Administration Office in writing when you wish to re-start your retirement income.  Your pension income would be adjusted (increased) based on the contributions received while working.
  3. If your employment is with a Contractor signatory to the Provincial Sheet Metal Collective Agreement and the Sheeters Agreement with Local 8, you can exercise Clause 19.01.


What is Clause 19.01 in the Sheet Metal and Sheeters Agreement?
"For Commercial/Institutional work, the Employer shall contribute to the Alberta Sheet Metal Workers' Retirement Trust Fund the amount indicated in the wage schedule for every hour that an employee, covered by the terms of this Agreement, is employed.  For Industrial work only, the Employer shall contribute to the Alberta Sheet Metal Workers' Retirement Trust Fund the amount indicated in the wage schedule for every hour earned at the applicable rate of pay, that an Employee, covered by the terms of this Agreement, is employed. 


Such contributions shall commence on the first day of employment for such Employees, except as follows:

  • Any Member of the Union who is receiving Pension, or has made an application to the Alberta Sheet Metal Workers' Retirement Trust Fund to receive a Pension, and is entitled to receive a pension shall advise his/her Employer, who shall no longer be required to contribute to the Alberta Sheet Metal Workers' Retirement Trust Fund.  The Employer in consultation with the Employee involved will agree to add the hourly contribution amount to a combination of the Employee's wages and SHP and VP.


Wage schedules for workers under this option will be adjusted by a formula that will provide a total of 80% of the pension contribution normally contributed to the Pension Trust Fund.  This amount will be distributed to the Base Rate and Holiday/Vacation Rate as per the established distribution method.  [e.g.: Industrial Pension adjustment $5.50 x 80% = $4.40 added to pensioner gross rate; Commerical/Industrial Pension adjustment $4.50 x 80% = $3.60 added to pensioner gross rate].  The Pension contribution attributed to Pensioners and the Employer's payroll burdens will equal the amount normally contributed to pension." 


What happens if I die before retirement? 

  1. Your surviving Spouse is eligible to receive an immediate pension equal to 75% of your lifetime pension, continuing for your Spouse's Lifetime or 10 years, whichever is longer.

  2. If you are not survived by a Spouse and your beneficiary is financially dependent on you, the beneficiary shall be eligible to receive an immediate pension equal to 75% of your lifetime pension.  This pension will be payable for 10 years, or less where required by Income Tax Regulations.  Income Tax Regulations prohibit the payment of pension benefits to dependents who are over 18 and not in school full time.  Also, beneficiaries who were dependent on you because of disability are prohibited, by Income Tax Regulations, from receiving further pension payments if they recover from their disability after your death.

  3. If you are not survived by a Spouse and your beneficiary is not financially dependent on you, your named beneficiary will be eligible to receive the commuted value of your pension benefit.


What happens if I die after retirement?
In the event of your death after you retire, benefits will be paid according to the pension option you chose at retirement. 

Application for Pension

Application for Pension (pdf)

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