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?
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:
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:
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?
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.