BENEFITS ON TERMINATION FROM THE PLAN



 If you stop working for a participating employer so that no further contributions are made to the Plan on your behalf, you will be terminated from the Plan at the end of the twelve [12] month period in which no contributions are made on your behalf. If you have more than 300 hours of service (vested), a termination statement will be mailed to you outlining your options.

Upon termination and if you have greater than 300 hours of service in the Plan, you will be entitled to a pension payable at age 65 equal to the full pension credits you have accumulated. If you have less than 300 hours you will not be entitled to any benefits.

If you are vested and below age 55 at the time of termination of your membership in the Plan, you may elect to have your pension cancelled, and in lieu thereof to transfer the value of that pension:
  • to your new employer's pension plan, provided that plan is willing to accept such a transfer; or<
  • to a "locked-in" vehicle with the financial institution of your choice ["locked-in" means that it cannot be cashed out and must be used to provide a lifetime pension]; or

  • to purchase a lifetime annuity from an insurance company.

Under certain very limited circumstances prescribed under the Pension Benefits Standards Act, 1985, in the case of small pensions, the Plan will pay you a cash settlement of the full value of your pension credits in lieu of a deferred pension and in full settlement of your rights under the Plan. For membership terminations, annual pensions of less than 4% of the yearly maximum pensionable earings can be paid out in cash, or you will have the option of transferring the funds to an RRSP [not "locked-in"].

With respect only to that portion of your vested pension derived from pensions earned as at December 31, 1986, if you have not reached age 65 and if you have both attained age 45 and completed 10 years of continuous Plan membership at the time the last contribution is made to the Plan on your behalf, you may elect to receive a lump sum equal to the value of 25% of such portion, in which event your vested pension entitlement will be reduced by 25% of such portion.

However, if you had not reached age 45 or had not completed 10 years of continuous Plan membership at the time the last contribution was made to the Plan on your behalf, and you are not yet age 65, you may elect to receive a lump sum equal to the value of 50% of such portion, in which event your vested pension entitlements relating to such portion will be cancelled.

If you have been employed in pensionable service by an employer who is not subject to federal law, then the vesting provisions above may be varied by the effect of provincial pension legislation and, further, the right to elect a cash settlement may be further restricted by those provincial laws.

If your membership in the Plan is terminated and you subsequently rejoin the Plan at some later date, you will be treated as a new member for all purposes of the Plan and your prior and new periods of service will not be combined for purposes of determining eligibility for benefits or calculating the amounts of benefits.


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Prairie Teamsters Administration Services Ltd.
209, 7260 - 12 St SE Calgary, Alberta T2H 2S5
Telephone 403-252-6924 - Toll Free1-877-817-7526 - Fax 403-253-3231