Retirement Benefits print

There are some benefits that apply only if you retire from the Plan:

• a minimum pension benefit
• an additional minimum benefit payable in respect of your own contributions, and
• a temporary supplemental benefit, also known as a bridge benefit.

Minimum Pension Benefit Upon Retirement

If you retire as an active member of the Plan on or before December 31, 2008 and you were an active member on January 1, 1998, you will receive a pension calculated in accordance with the formula described on page 7, except that Part 2 is equal to the greater of:

1.6% of your total earnings from
January 1, 1998 until you retire ÷ 12
OR
$50 per month per year of credited service

Benefit in Respect of Your Contributions

With respect to the contributions you make to the Plan, upon retirement, you may decide to either:

transfer the amount in your Employee Contribution Account to an approved locked-in vehicle, such as another registered pension plan or an RRSP, or purchase a life annuity from a Canadian life insurance company.

OR

receive the greater of:

1. a monthly pension provided by multiplying the amount of your employee contributions without interest by 15% and dividing by 12, or
2. the monthly pension provided by your employee contributions with credited interest as calculated using annuity factors determined by the Plan Actuary.

Temporary Supplemental Retirement Pension

Based on your age and years of credited service at retirement, you may be entitled to a temporary supplemental pension. This benefit is added to your regular pension benefit if you retire between the ages of 55 and 65.

If you retire as an active member of the Plan after reaching age 55 and the sum of your credited service, including your credited service under the Overwaitea Food Group Pension Plan, and age on your retirement date totals 80 or more, you will qualify for a temporary supplemental pension, if you are:

• a Local 1518 member age 51 or older on January 1, 2006, or
• a Local 247 member.

It is the Trustees’ intention to gradually extend this benefit to all Local 1518 members who retire from Overwaitea Foods/Save-On- Foods and meet the age and credited service requirement. The extension will be phased in over time based on the Plan’s financial condition.

 If you qualify, you will receive a supplemental monthly benefit equal to:

• $200 per month between retirement and age 60, and
• $100 per month between age 60 (or your retirement date if later) and age 65.

Payment of your temporary supplemental retirement pension benefit will stop at the end of the month in which you die or the end of the month in which you turn 65, whichever is earlier.

Retirement Pension Dates

Normal Retirement

Your normal retirement date under the Plan is the last day of the month in which you reach age 65.

Early Retirement

Unreduced Early Retirement
If you retire on or after age 60, you may receive an unreduced pension with Trustee consent 1 . If Trustee consent is not granted for any reason, you may still choose to retire early, however, your pension will be reduced.

Reduced Early Retirement at age 55
You may retire on the last day of any month after you reach age 55. Provided you have credited service after age 50, your pension benefit will be reduced, with Trustee consent, by ¼% for each month (3% per year) from your retirement date to age 60. The table below illustrates the total early retirement reduction (with Trustee consent) from your normal retirement date.

Pension Starting At Age	Early Retirement Reduction
60 - 69	0%
59	3%
58	6%
57	9%
56	12%
55	15%

If you do not have credited service after age 50, your pension benefit will be reduced by ½% for each month (6% per year) from your retirement date to age 60.

Reduced Early Retirement at age 50
If you were an active member of the Plan on January 1, 1998 or you have at least 15 years of credited service, you may retire on the last day of any month after you reach age 50. Provided you have credited service after age 50, your pension benefit will be reduced, with Trustee consent, from your retirement date to age 60 as follows:

• ½% for each month (6% per year) from age 50 to 55, and
• ¼% for each month (3% per year) from age 55 to 60.

The table below illustrates the total early retirement reduction (with Trustee consent) from your normal retirement date.

Pension Starting At Age	Early Retirement Reduction
60 -69	0%
59	3%
58	6%
57	9%
56	12%
55	15%
54	21%
53	27%
52	33%
51	39%
50	45%

For example, if you are eligible to retire at age 52 and 4 months, with Trustee consent, your normal retirement pension will be reduced by 31% (i.e., ½ of 1% for each month [32 months] from age at retirement to 55 plus another ¼ of 1% for each month [60 months] between age 55 and 60).

If you do not have credited service after age 50, your pension benefit will be reduced by ½% for each month (6% per year) from your retirement date to age 60.

If Trustee consent to use the factors in the charts on page 10 and 11 is not granted for any reason, you may still choose to retire early. However, your pension will be calculated using actuarial reduction factors. The Actuary will determine the exact amount of the reduction.

1.Trustee consent is granted on a non-discriminatory basis. It is not the intention of the Trustees to withhold consent while the Plan is operational.

Postponed Retirement
You may receive a pension after your normal retirement date without reduction. According to Canada Revenue Agency regulations, you cannot postpone receipt of your retirement pension beyond the end of the calendar year in which you turn age 69.

Retirement Pension Options

All retirement pension options pay your pension for your lifetime. The only difference between the options is what happens to your pension payments after you die. All pension options have the same actuarial value, which is based on the normal pension option (see description below). However, with the options other than the normal option (except the life only option), the amount of pension you receive will be less - to account for the payments that continue following your death. The amount of pension you receive with the life only option will be more than the normal option as there are no payments made after your death.

Deciding which pension option to choose is an important personal decision that you must make after careful consideration of the alternatives. You must select a form of pension before your pension starts, and once it does start, you cannot change your mind. It is very important for you to discuss these options with the Plan Administrator before your retirement date.

NORMAL PENSION OPTION

The normal pension option is paid for your lifetime with a minimum guarantee of 60 monthly payments (five years). This means that if you die before 60 monthly payments have been made, the payments for the balance of the five-year period will be paid to your beneficiary or estate.

JOINT AND SURVIVOR OPTION REQUIRED FOR MEMBERS WITH A SPOUSE 

The Pension Benefits Standards Act requires that if you have a spouse when you retire, you must select a pension option providing at least 60% of your pension to your spouse for his or her lifetime after your death. However, your spouse may decline this coverage by completing a waiver form. Waiver forms are available from the Plan Administrator.

YOUR OPTIONS

You may select one of the following pension options; remember, each option is based on the normal form of pension described on page 12.

Life Only
In the Life Only Option, your pension is payable for as long as you live; there are no payments after your death even if it occurs directly after your retirement.

Life With Guarantee
In the Life With Guarantee Option, your pension is payable for as long as you live; however, you may choose to guarantee your pension payments for either 10 or 15 years. If you die before the end of the guaranteed period, the pension continues to be paid to your beneficiary or estate until the end of the guaranteed period.  For example, if you select a life pension guaranteed for 10 years and you die before receiving 120 monthly pension payments (i.e., 10 years x 12 monthly payments), the payments for the balance of the 10-year period will be paid to your beneficiary or estate.

Joint and Last Survivor
In the Joint and Last Survivor Option, your pension is payable for as long as you live; however, you may choose to provide 60%, 75% or 100% of your pension to your spouse after your death. Your spouse is referred to as your joint pensioner. A joint pensioner can only be the person who was your spouse on your retirement date.

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