Your Pension

Your Pension is important. Members of UFCW Locals 175 & 633 participate in a variety of pension plans depending on the workplace. It is important that you understand the details of your plan and the other options available to you.

Review your annual pension statements to ensure your hours, contribution level, length of service, etc., have all been reported correctly. Keep your address up to date with ALL benefit providers.

Well in advance of your retirement, you should ensure you have information for any/all pension plans you participated in throughout your working life. If you’re unsure who to contact, start by getting in touch with former employers to find out the administrators of your plan(s). If a previous employer has closed, you can contact FSCO to find out in which plan that employer participated.

Retirement benefits
DO NOT START AUTOMATICALLY
YOU MUST APPLY

UFCW Locals 175 & 633 - Your Pension

No matter what your age, your income level, or how much you have saved, it’s important to speak to a qualified, independent financial adviser – who’s not trying to sell you anything.

The Government of Canada has calculators and other tools available to help you find out how much retirement income you will receive. Visit www.canada.ca.

Some good basics to start with:

  • Make a plan.
  • Don’t wait too long to start that plan (it’s never too early to think about it)
  • Consult a professional Financial Adviser
  • Have a Will and update it as necessary.
  • Designate beneficiaries for each of your plans (including Life Insurance, etc.)
  • Consider your expenses in retirement (hobbies, living situation, travel, care for other family members etc).
  • Find out what retirement income you’re entitled to.

Types of Retirement Income

For all retirement income you must either apply or inform the plan administrators of your intended retirement date.

Canada Pension Plan (CPP)
Provides monthly payments to retirees who worked in Canada & contributed to the Plan during their employment.

Old Age Security (OAS)
Provides monthly payments to most Canadians (65 or older) who qualify.

Guaranteed Income Supplement (GIS) 
Provides additional money to low-income seniors who qualify.

Defined Benefit Pension (DB)
A DB plan requires fluctuating contribution amounts and defines the ultimate pension benefit to be provided in accordance with the formula, usually based on years of service, earnings, on a flat rate, etc.

Defined Contribution Pension (DC)
DC plans define contribution amounts required instead of the benefit. At retirement, the benefit amount is based on the accumulated contributions & investment return in the member’s account.

Multi-Employer Pension Plan (MEPP)
A plan in which two or more unrelated employers participate & contribute to the same plan. A MEPP can be a DB or DC plan, or a combination of both.

UFCW Locals 175 & 633 - Your Pension

How much income do you require to live a happy healthy retirement?

Complete a budget for yourself. Remember:

  • When you stop working. you no longer contribute to Employment Insurance, Canada Pension Plan, Union Dues, or RRSPs.
  • You likely will no longer spend as much money on things like commuting, work clothes, lunches, and more.
  • Your overall reduced income will likely put you in a lower tax bracket.

Questions to consider:

  • Will you be renting or paying a mortgage?
  • How is your health and what coverage will you have (drug, vision, dental, extended health)? Will you require additional coverage?
  • Will you be active or travel in your retirement?
  • Do you have children or parents to take care of?
  • Do you like your job? Are you able to keep working?
  • When do you want to start collecting your public pensions (CPP, OAS, GIS)?
    * Keep in mind that if you start collecting CPP before 65 your payments will be reduced. OAS will not begin until the age of 65.

Public pension income - Age 65
as of Jan - Dec 2017

CPP MAX $1,114.17
OAS MAX $578.53

That means the MAXIMUM combined CPP and OAS
you can receive is about $20,300 per year.

And most people DON’T QUALIFY for the maximum.

Visit www.canada.ca for updated info
when you begin planning.

Starting early can make a big difference!

Invest at Age Retire at Age Investment Amount Annual Interest Rate Annual Inflation Rate Total Future Value of Investment
20 65 $1,000 3% 2% $1551.20
30 65 $1,000 3% 2% $1407.01
40 65 $1,000 3% 2% $1276.22
50 65 $1,000 3% 2% $1157.59

Published in Checkout June 2017 - Download the PDF