New provisions make Plan membership more valuable

Elimination of vesting rules

Changes to pension law are about to make your pension benefit more valuable.

Currently, you are “vested” after 2 years of Plan membership. Being vested means you are entitled to a pension benefit from the Plan either in the form of a pension when you retire, or one of our termination options, if you leave the Plan before retirement.

Prior to vesting, if you leave your job before age 65, you receive a refund of your contributions (plus interest). However if you leave your job after vesting, you are entitled to the value of your lifetime pension – either to transfer out of the Plan, or to collect as a deferred or immediate lifetime pension. 

Starting July 1, 2012, all members will vest immediately.

With the passing of Bill 236 last year, changes have been made to the Pension Benefits Act which will eliminate the 2-year “waiting period” for vesting for pension plans in Ontario.

Regardless of how much service they have, all current Plan members will automatically vest, and all future members will vest as soon as they join the Plan. All members will therefore be entitled to a pension benefit when they leave the Plan. For current non-vested members, this change means the value of your benefit will increase immediately, since a lifetime pension is usually worth more than the amount of your contributions plus interest.