Facts At A Glance - 2007 Plan Text

1.  Membership & Vesting Requirement
There is a two-year vesting requirement. After 2 or more 'Years of Plan Membership' you are vested and have a non-forfeitable right to a benefit under the Plan. A Year of Plan Membership is any calendar year in which the Plan receives at least 350 hours of contributions from an employer on your behalf. You become an Active member of the Plan when an Employer makes a contribution for you and you complete and return the required enrolment form to the Pension Administration Office. You must be vested to be entitled to benefits. 

2.  Retirement Dates
Normal Retirement Age is 65. You may commence Early Retirement at age 60 with no reduction. You may choose to retire as early as age 55 and receive an actuarially reduced Lifetime Pension. The reduction reflects the extra pension payments you are expected to receive over your lifetime.

3.   Lifetime Pension
Your Employer remits contributions for every hour that you work. The rate per hour contributed is based upon their agreement with Local Union # 8. Because there are varying rates, your contributions are converted to a Standard Contribution Rate to calculate your Lifetime Pension for each Plan Year.

 Effective January 1, 2007, the Standard Contribution Rate (SCR) is $4.25 per hour and you earn 4.14 cents for each SCR hour.

 Example: 1,820 hours contributed at $2.80 per hour earns $49.64 / month Lifetime Pension payable unreduced at age 60.

4.  Supplementary Pension
A Supplementary Pension is payable to you if you retire on or after age 57 and is payable to age 65. The Supplementary Pension is equal to 50% of the Lifetime Pension calculated at the age of retirement.

         *The example above would provide a Supplementary Pension of $24.82/month from age 60 to age 65.

5.  Normal Form of Pension
You will receive an Annual Pension Statement in February of each year, reflecting the amount of Lifetime monthly pension you have earned during the immediate past year and your accumulated total. The amounts are recorded in the Normal Form of Pension, which is Joint & Last Survivor -guaranteed for your lifetime and your spouse's lifetime. If you have no spouse, your benefit is calculated and payable monthly for your lifetime, with the guarantee that if you die before receiving 60 monthly payments, the value of the remaining payment will be paid to your beneficiary or estate. 

6.  Self-Payment Provision
Once vested, and providing you have never received a retirement benefit from the Plan, you may make a single lump sum payment (Self-Payment) to increase your Standard Contribution Rate Hours earned in the immediate preceding year. (You must have hours of covered employment in order to self-pay.). Self-Payments can only be made annually during the months of February and March. You may purchase any number of Standard Contribution Rate Hours up to a maximum of 2,100 hours at $4.25per hour, providing the total of your Self-Payment and Standard Contribution Rate hours do not exceed 2,100 hours.

·         2,100 hours @ $4.25 per hour earns $86,94 / month lifetime pension, payable unreduced at age 60 

Your Self-Payment is tax deductible for the year in which it is paid and will reduce the amount you are permitted to contribute to an RRSP for the year. You may roll in RRSP funds, however no tax deduction will occur.

7.  Past Service Purchases
Once vested, and providing you have never received retirement income from the Plan, you may Purchase Past Service for previous years where you have not earned a Lifetime monthly pension  of $86.94 per month. Your Past Service payment is tax deductible for the year in which it is paid. If applied to a year prior to 1990, the payment will not reduce your RRSP contribution room. You may roll-in RRSP funds; however, no tax deduction will occur. If you are interested in increasing your Lifetime Pension through this provision, please contact the Pension Plan Office for a Past Service calculation.

8.  Flex Contributions
An Active vested Plan Member may open a Flex Account and make voluntary contributions. Your Flex contribution is tax deductible for the year in which it is paid and will not affect your RRSP room. This account will earn annual compounding interest. At the time of retirement you would use your account to purchase additional benefits such as,
        -        a cost of living increase,
      -      more supplementary benefit (payable from retirement to age 65),
      -      offset Early Retirement reduction from age 57 to age 55,
      -      increase the Normal Form of Pension (pre-97) from Single Life to Joint & Last Survivor,
      -      a combination of the above four options

You can deposit the lesser of:
      -      the sum of $1000 plus 70% of employer contributions received on your behalf during the year OR
      -      9% of your earned (taxable) income for the year

For example, if you had Employer Contributions of 2,000 hours x $2.80 / hr = $5,600
      -      $5,600 x 70% = $3,920 + $1,000 = $4,920 OR
      -      $40,000 annual taxable income x 9% = $3,600.

In this example, $3,600 would be the annual maximum you could contribute and deduct from your taxable income. Keep your payslips in order to calculate your maximum amount towards the end of each year.

9.  Disability Pension
If you become disabled, without interruption, for at least 6 months and you are an Active Vested Plan Member, you may be eligible to receive a Disability Pension Credit.  

10.  In the Event of Your Death - Prior to Retirement
-                Vested and leave a Surviving Spouse -75% of the lifetime pension you had earned is payable for
             your spouse's lifetime, with a guarantee in any case of 120 payments.
-                Vested and leave no Spouse but do leave Financial Dependents - 75% of the lifetime
             pension you had earned is payable for up to ten years (subject to limits imposed by Income Tax
             Regulations).
-                Vested and leave no Spouse & no Financial Dependents - a commuted value of the
             pension you had earned is payable to your named beneficiary or estate. 

11.  Questions
The Alberta Sheet Metal Workers' Retirement Plan is registered with Canada Customs & Revenue Agency and Alberta Employment Pensions. The Retirement Plan is directed and administered by an Industry Joint Board of Trustees; three Local Union #8 Trustees; three Employer Trustees; and two Pensioner Trustees. The Joint Board of Trustees employs a skilled staff to perform administrative functions. Any questions should be directed to the Pension Plan office at;

Alberta Sheet Metal Workers' Retirement Trust Fund
4990 - 93 Avenue Edmonton, Alberta T6B 2L6
Phone: (780) 466 – 1999
Toll Free (In Alberta): 1-800-642-3881
Fax: (780) 466-2095 

      12. Website:  Alberta Sheet Metal Retirement Trust Fund
       The web site contains a detailed up-to-date copy of the plan booklet. Any plan member
       can obtain a printed copy by contacting the above office.

January, 2007

"Facts at a Glance" does not incorporate every Plan detail, and is designed to provide a brief overview. In the event of any inconsistency or misunderstanding, the benefit will be administered according to the official Plan Documents and applicable Legislation.
Copies of official documents are available from the Pension Plan Office.