Steps for Giving Retirement Notice
The benefits provided by the Plan are funded by contributions made by the Division and the employees as well as investment income.
The Division contributes 127.4% of the amount contributed by the employees to the pension fund less the annual cost of the Disability Income benefits paid.
For calendar year 2007 the employees are currently required to contribute 6.0% of their annual pensionable salary up to $42,100.00 and 7.4% on any salary earned above $42,100.00. The contributions are tax deductible and appear on your T4 each year.
The Pension Actuary determined that rates of 7.0% up to the YMPE (Year’s Maximum Pensionable Earnings) and 8.2% on earning in excess of the YMPE would be required to sustain current benefits. A gradual increase in contribution rates was recommended to bring the contribution rate to the required 7.0%. It was recommended the increases in contributions of 1.5% (.5% per year) be introduced over a period of three years as follows:
|EFFECTIVE DATE||PENSIONABLE SALARY||EXCESS PENSIONABLE SALARY|
|January 1, 2007||6.00%||7.40%|
|January 1, 2008||6.50%||7.80%|
|January 1, 2009||7.00%||8.20%|
The formula used to calculate annual pension from the School Division Plan that is paid prior to your 65th birthday is:
2% X Average Salary X Pensionable Service
At age 65 the formula used to calculate the annual pension you will receive from the School Division Plan once you reach 65 is:
1.6% of Average Canada Pension Plan Salary
2% of the difference, if any, between the average Salary and the Average Canada Pension Plan Salary multiplied by the number of years of Pensionable Service from January 1, 1966
For those members who made contributions to the Pension Plan prior to January 1st, 1966, you will receive a pension for this period equal to 2% of the Pensionable Service prior to January 1st, 1966.
Buyback of Service
Application for buy-back of service may be made at any time during the year.
A member may apply to have all of part of past service for which contributions were not made, with the exception of the waiting period, count as Pensionable Service. The waiting period is the initial 3 months for all full-time and part-time employees unless otherwise referenced in the employees’ collective agreement with the Winnipeg School Division.
The Winnipeg School Division is not contributing toward the cost of the buy-back. The employee will have to pay the full 100% cost of the buy-back.
To request buy-back information, submit your written request to the Pension Section at Administration Building No. 1.
Part-time employees who are currently not in the Pension Plan, may request to voluntarily be enrolled after 3 month’s continuous employment service with the Division. Submit your written request to the Pension Section at Administration Building No. 1.
If a member leaves the service of the School Division and does not qualify for an immediate pension, the following options are available:
- Leave your contributions in the Plan and receive a pension at retirement
- Transfer the value of your pension to an R.R.S.P. if eligible or to a Locked-In-Retirement Account (L.I.R.A.) or to a Life Income Fund (L.I.F.)
- Transfer the value of your pension to another pension plan – if that plan permits, or
- Receive a cash settlement of part or all of your contributions with interest, if eligible.
Within 30 days of termination of service, you will receive a detailed written report explaining your options.
Cost of Living Adjustments (Pension Indexing)
A Supplemental Pension Account (cost of living reserve fund) is set aside to provide supplementary pension increases for members receiving pension/survivorship benefits from the Pension Fund. Provision of the cost of living benefit is subject to the annual approval of the Pension Committee and the Board of Trustees.
Long Service Leave
Employees who are entitled to a long service leave may take the long service leave prior to retirement, have it paid out as a lump sum payment at retirement or transfer it tax free to a Registered Retirement Savings Plan.
Disability Income Plan Effective April 8th, 2002
Members of the Pension Plan for Non Teaching employees have a disability income plan. Should you become ill and your illness is in excess of six months, you may be eligible for benefits under this plan. Please refer to your pension booklet or contact the Disability Department at (204) 789-0498 for further information.
Retirement Planning Seminars
Retirement Planning Seminars sponsored by Winnipeg School Division are conducted yearly.
If you are contemplating retirement or are interest in participating in one of the upcoming seminars, registration forms may be obtained from Human Resources Department or your work location.
You only have to apply once as your application will remain on file with the Human Resources Department indefinitely.