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Marie McKillop - Charlotte Laviolette - Ingrid Ochodek

Boilermaker Pension Plan - Frequently Asked Questions

Question: Is our Pension Plan a Defined Benefit Plan, or a Defined Contribution Plan?

Answer: The Boilermakers Pension Plan is a Defined Benefit Plan, which provides a pension at retirement according to a pre-determined benefit formula. The formula reflects the Pension Plan’s funding status, inclusive of the Plan investment earnings.

Question: Why does the Board of Trustees have Plan Rules that are restrictive when they don’t have to be under Pension legislation? For example, Pension legislation says the Trustees may allow a Member to take a Termination Benefit on or after the date the Member reaches age 55, but the Plan’s rule is you must be under age 55.

Answer: Pension legislation establishes minimum standards, and where the Pension Benefits Standards Act states that a plan "may" do something the Trustees have flexibility in setting Plan Rules. This is important, because the Board of Trustees, as legal plan administrator, must make decisions on Plan Rules that are determined to be best for the long-term financial health of the Pension Plan in order to provide retirement benefits for all Plan Members and beneficiaries.

Question: Is the requirement for Termination Benefit eligibility that the Member worked less than 350 hours in each of the two previous consecutive calendar years, or 24 months period?

Answer: The requirement is less than 350 hours in total in two consecutive calendar years. The legislative requirement is that less than 350 hours were completed in any period of two consecutive completed fiscal years of the Plan - a Plan Year under your Pension Plan is a calendar year.

Question: Will I receive a full payout of my Termination Benefit?

Answer: No, initially you will receive 74%.The Plan’s Transfer Ratio is 0.74 effective September 5, 2006, and the BC Pension Benefits Standards Act, provides that 74% of the commuted value of a Termination Benefit may be paid out immediately upon an eligible application being processed.

Question: When will I receive the rest of the payout due to me?

Answer: The balance, called the deferred payment, is paid at the earlier of five years from the initial transfer or restoration of the Plan’s Transfer Ratio to 1.00 – whichever happens first.

Question: What interest rate is applied to my deferred payment?

Answer: The deferred payment earns interest per annum based on the interest rate used in the commuted value calculation performed for the Termination Benefit Application. The interest rate used can change from month to month.

Question: Who sets the interest rate for commuted value calculations of Termination Benefits?

Answer: The formula for the calculation is established by the Canadian Institute of Actuaries.

Question: Can I take my Termination benefit in cash?

Answer: No. Your Termination Benefit must be used to provide you with retirement income. It can only be transferred, as required under pension legislation, to one of the locked-in investment vehicles listed below.

Question: If I retire under the Boilermakers Pension Plan and then go back to work later, how come the contributions my employer sends in don’t go to my pension account?

Answer: Under the Income Tax Act Regulations, Section 8503(3), a Member of a Defined Benefit Pension Plan cannot receive at the same time both a pension and have further pension contributions credited to their account because they are working after taking a pension. Under certain conditions of the Income Tax Act and the Pension Benefits Standards Act, a Defined Benefit Pension Plan may allow a Pensioner to suspend their pension while they continue to work, and therefore receive further defined benefit contribution accruals, but, this option is not available under your Plan. If the Trustees determine that it may be something that the Plan can offer in future they will consider it.

Question: A Termination Benefit is based on a commuted value calculation.  What is a commuted value?

Answer: The commuted value is an actuarial calculation of the amount of money which, if invested “today” (the “present day value”) and until you reached age 61 (the Plan’s Normal Retirement Age), would be expected to be sufficient to provide you with the same monthly Pension as you would have received from the Plan retiring at age 61.   

Question: How is the commuted value calculated?

Answer: A commuted value calculation reflects the prescribed standards (Canadian Institute of Actuaries), and various factors such as: a Member's age, accrued monthly pension benefit under the Plan’s Normal Form (Life Guaranteed 10 Years), the Plan’s Normal Retirement (age 61), actuarial mortality rates and current monthly interest rates reflective of medium/long-term bonds yields.

Boilermakers Lodge 359 Health and Welfare Plan

Question: I heard you can get your prescription drugs from Costco Pharmacy at a cheaper price than other pharmacies. Is this true?

Answer: If you are interested in paying less for prescription drugs, COSTCO Pharmacy is known to charge less overall on prescription drugs filled at their pharmacy.

Question: If I need to Self-Pay and I don’t pay until the due date, am I covered still?

Answer: No, until your payment is received you are not covered. If you need to get treatment in the first 2 weeks of the Self-Pay month you have to make sure your Self-Payment is received by the Administration Office before-hand. For example, if you are going to the dentist on December 10th, and the Self-Payment notice for December coverage has a due date of December 12th, then the Administration Office needs to receive your Self-Payment by December 9th to be able to tell your Dentist’s office you are covered if they need to know. If you wait until the Self-Payment Due Date to pay, then any claims the Administration Office receives on your behalf will be held for payment, until your Self-Payment has been received. If your Self-Payment is not received by the due date, then the claim will be returned as not eligible.

Please remember it is your responsibility to act on receiving a Self-Payment Notice and make the necessary payment, treating it responsibly like you treat your other bills.

Question: Can I pay my Self-Payment by money order?

Answer: Yes, BUT you must make sure that your name is on the money order, and/or attach a copy of the Self-Pay Notice to the money order. Otherwise, the Administration Office will not know who the money order is from because the money order only prints who the payment is to and the amount.

Question: Do I need to do anything special if I am having major dental work done?

Answer: Yes. Before you get any major dental work done (for example, crowns or bridges), your dentist should send the Administration Office a Pre-Authorization. This provides the details of the dental treatments the dentist plans to perform. The Administration Office will then send a Dental Pre-Authorization Statement to you and your dentist, in writing, which tells you what dental services and fees will be covered by the Plan. This is strongly recommended so that both you and your dentist know the amount covered by the Plan before the treatment is started. And, you will also know in advance of any out-of-pocket expenses you may have to pay.

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