TERMINATION OF BENEFITS
WHAT IF I TERMINATE EMPLOYMENT BEFORE AGE 55?
If you terminate employment with your Employer before you become eligible for early or normal retirement, you will be eligible for a vested retirement benefit.
WHAT IS VESTED RETIREMENT?
Vested retirement is a deferred retirement benefit commencing when you reach age 65. Your vested retirement benefit is equal to your accrued retirement benefit calculated at your date of termination.
WHAT IS THE 50% COST RULE?
On your termination, a "50% Test" will be made to ensure that you have not paid for more than 50% of the value of the benefit you receive from the Plan, excluding the portion of your benefit attributable to Purchased Past Service. Any excess contributions that you may have made, will be refunded to you with interest or at your option transferred to your RRSP. This rule is known as the 50% Cost Rule.
CAN I HAVE MY VESTED RETIREMENT BENEFIT BEGIN EARLY?
Your vested retirement benefit can begin any time after age 55, but it will be reduced for early retirement, see section called "WHAT WILL I RECEIVE IF I RETIRE EARLY?". Your retirement benefit will be payable in the normal form unless you elect one of the optional forms described in this booklet.
CAN I TRANSFER THE VALUE OF MY VESTED RETIREMENT BENEFIT OUT OF THE PLAN?
In lieu of receiving your deferred retirement benefit at age 65, you can transfer the Commuted Value of your vested retirement benefit to:
# another registered pension plan,
# a registered retirement income fund
# an insurance company, or
# any other retirement income arrangement prescribed by the provincial legislation
provided that the administrator of such other plan agrees in writing to administer such transferred amount as a deferred life annuity.
WHAT HAPPENS IF I TERMINATE EMPLOYMENT AFTER AGE 55?
If you terminate employment with the Company after age 55, you will be deemed to have retired early from the Plan, and you will have two options:
# You may elect to commence receipt of your accrued pension which will be determined as if you had elected to retire early as described in Section 5, or
# You may elect to defer receipt of your pension payments to a date in the future, but no later than December 31 of the year of your 71st birthday. The amount of your pension payable at such date will be equal to the amount of your pension accrued on your early retirement date, multiplied by the factor for early retirement detailed [Sec 5], according to your actual age at your future retirement date.
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