Pension Information 101
Why do I have two separate pension deductions on my pay? Best 3 years and other info…
The Pension Committee wants to wish you all a healthy and prosperous 2023.
With the start of the new year, it is good to take some time to think about one’s retirement future.
Here is some general information about the pension plans at Mainline and Rouge.
Hybrid Members at Mainline and Rouge:
You contribute to your pension into two different components of the Hybrid pension plan: one component is a Defined Benefit plan (DB) and the other is a Defined Contribution plan (DC).
The DB pension plan is managed by Air Canada (it is actually managed by an AC subsidiary called Trans-Canada Capital “TCC”).
The DC pension plan is managed by Manulife.
Every member from both Mainline and Rouge hired after November 7, 2011, are part of the Hybrid pension plan. (Members hired before November 7, 2011, are part of the Defined Benefit pension plan.)
Therefore, members on a Hybrid pension plan, will always see two separate deductions from their pay: one contribution will go to their DB plan and the other to the DC part of the Hybrid pension plan.
Increasing pension contributions for Hybrid members.
Members under a Hybrid pension plan can increase their contribution percentage for the DC (Defined Contribution) component of their pension plan. (Members cannot increase contribution percentage in their Defined Benefit pension.)
For more information about increasing your DC pension contributions at Manulife, click HERE.
Taking a leave of absence? Don’t ignore how it can impact your retirement.
After a leave of absence, members have 90 days to buyback their pension. Click HERE for more information about pension buybacks.
Average Annual Compensation (AAC): a.k.a. best consecutive 36 months.
Your pension payment is calculated based on a formula that requires your Average Annual Compensation (AAC), which is your best consecutive 36 months or best 3 years.
For DB members: details and information can be found in the Employee Booklet which can be found by following these links: HR Connex > Retirement > HR Connex Pension > Quick Links > Plan Information > Air Canada Pension Plan – Employee Booklet
For Hybrid members: details and information can be found in the Plan Member Booklet by following these links after logging into ACAeronet: Click HR Connex > Under the ‘Retirement’ tab > Click ‘My DC Pension’ > My Profile > View My Plan Material > Plan Member Booklet
Safe travels.
Regards,
Your Component Pension Committee:
Marc Roumy (Chairperson)
Henly Larden (Member)
Caroline Lozeau Gelinas (Member)
Alex Habib (Rouge Member)
Did you know?
Almost half of the current membership is on a DB (Defined Benefit) pension plan and the other half is part of a Hybrid pension plan.
Even though these are two different plans, there is one common link for the entire membership: we are all contributing into a DB pension plan.
Retirement Update:
In 2022, 64 members had retired. Click HERE to look at the breakdown between bases. Best wishes to all retired members.