Special Leaves and Reduced Block Program – Buyback:
This bulletin is to remind members who take a leave or apply for the RBP, at any point in their 35 years of serviceable time, that they should seriously consider buying back their pension. Not doing so can have a negative impact on one’s pension plan retirement benefit.
Be mindful that members stop contributing into their pension plan after 35 years of allowable service.
In the summer of 2021, over 420 members participated in the Early Retirement Incentive Program (ERIP).
More members could have participated in the ERIP, however, because some did not buyback their pension following leaves; this attributed to lacking the required numbers to be able to retire early with this incentive.
After a leave of absence, please call to Alight to speak to a representative to initiate your pension buyback.
This applies to all. Members on both the Defined Benefit and Hybrid pension plan.
Alight (English): 1-855-354-6944
Alight (French): 1-855-354-6943
For Air Canada Rouge members, contact the Air Canada Rouge Pension Services at 1-855-538-7799.
Note: Members have 90 days from return to duty to initiate a pension buyback. This applies for Air Canada Mainline and Air Canada Rouge members.
Are you a member of the Hybrid plan? If yes, then take advantage to boost your contributions!
Members under the Hybrid pension plan can increase their contributions for the Defined Contribution (DC) component of their pension plan.
A new member who contributes $100 into their Defined Contribution plan is matched at 100%. Therefore, a member who contributes $100 will have $200 in their DC account.
By taking advantage of this matching, members benefit by compounding their money. The more money one puts in early in one’s career, the greater the benefit over time.
For more information about increasing your DC pension contributions at Manulife, click HERE.
We would like also to take the time to wish everyone safe travels this summer and an enjoyable Canada Day long weekend.
Regards,
Your Component Pension Committee
Marc Roumy (Chairperson)
Henly Larden (Member)
Caroline Lozeau Gelinas (Member)
Stefanie Falotico (Rouge Member)
Did you know?
The Master Trust Defined Benefit pension plan is valued at approximately $20 billion. The market capitalization of Air Canada (at a share price of $16.91), is just over $6 billion. The Master Trust DB pension is almost three times larger in value than Air Canada.