Increase your best 3 years of earnings (AAC)
Even though members are no longer required or allowed to contribute to the pension plan after 35 years of allowable service, they can still increase their Average Annual Compensation (AAC), which is the average of their best consecutive 36 months of pensionable earnings.
How does one continue increasing their best 36 consecutive months? By simply choosing to work more hours; to increase one’s pensionable earnings.
This can be done up until one retires or turns 71 years of age. (Active members begin receiving pension payments in the year they turn 71 years of age.)
Pension details and information are in the Employee Booklet, which can be found on the Alight website by following these links: HR Connex > Retirement > HR Connex Pension > Quick Links > Plan Information.
If you require further information regarding the Defined Benefit (DB) pension plan, an Alight representative is there to help you, by simply calling 1-855-538-7799.
Are you a member of the Hybrid pension plan?
If yes, then take advantage to boost your contributions!
Members of the Hybrid pension plan, (i.e. all members at Mainline and Rouge hired after November 7, 2011), can increase their pension contributions in the Defined Contribution (DC) component of their pension plan. The maximum contribution rate depends on your years of service. Members cannot increase pension contributions in their Defined Benefit (DB) component.
A member who contributes $100 into their DC component, are matched at 100% by the company. Therefore, a member who contributes $100 will have a total contribution of $200 deposited into their DC account at Manulife.
By taking advantage of this matching, members benefit by compounding their money. The more money one puts early in one’s career, the greater the benefit over time.
For more information about increasing your DC pension contributions at Manulife, click HERE.
Safe travels.
Your Component Pension Committee:
Marc Roumy (Chairperson)
Henly Larden (Member)
Caroline Lozeau Gelinas (Member)
Vacant (Rouge Member)
Did you know?
As stated above, Hybrid members with 2 years or less of service will see their DC pension contributions matched at 100% by the company. This increases to 137.5% for members between 2 and 5 years of service and 175% for members over 5 years of service.
Something worth noting as an interesting fact is that the amount the company matches in the DC component comes from the surplus of the DB component of the pension plan.