Summary of the Regular Pension Plan

Eligibility for Pension Plan Membership

All full-time employees are eligible for pension plan membership once they reach the minimum service reqirement of 24 months of continuous service. In Manitoba membership is mandatory.All other provinces allow voluntary participation. Part-time employees become eligible once they have earned the minimum earning or worked the minimum hours in their juristiction. Once you are a member of the plan you must continue to contribute to and participate in the plan while you are an employee of the company. The only exception being if you become disabled. Please check with your payroll department for further information.

Employee Contributions

Employee contributions are calculated using both your earnings and "Canada Pension Plan Year's Maximum Pensionable Earnings" (YMPE). As the YMPE is changed each year by the Government your contributions to the company pension plan will be adjusted to reflect any increase in the YMPE. The contribution formula is:

3% of your earnings up to the YMPE
PLUS
4.5% of your earnings over the YMPE

Contributions to the company pension plan in 1999, for an employee earning* $40,000.00 using the YMPE in 1999 of $37,400 would have been:

3% of $37,400 ...........................$1,122.00
PLUS
4.5% of (40,000 - 37,400) .........$117.00
EQUALS
Total in 1999 .............................$1,239.00

* The plan definition of earnings is gross salary, bonuses, commissions plus any other remuneration excluding any taxable benefits.

Once your contributions are in the pension fund, they will earn interest each year, based on a rate prescribed by the Government. Contributions in the fund for a full year would earn a full year of interest, whereas contributions in the fund for a part year would earn a part year would earn a part of interest.

A history of recent interest rates applied are:
1998 - 4.25%
1997 - 4.56%
1996 - 5.33%
1995 - 6.70%
1994 - 6.79%