days until our Collective Agreement expires, we are preparing, we are united and we will make change.

Pension Committee Update – September 2023

All Mainline and Air Canada Rouge members contribute into a Defined Benefit pension plan.

But contribution rates and retirement benefits are not the same between DB and Hybrid members.

In our previous bulletin, we briefly explained our membership is split between members under a pure Defined Benefit (DB) pension plan and members under a Hybrid plan.  We also gave a general explanation about the differences between Defined Benefit (DB) and Defined Contribution (DC) pension plans.  Click HERE to read the bulletin.

Even though we are all contributing into a Defined Benefit pension plan, there is a difference between the pure DB pension plan and the DB component of the Hybrid plan, in terms of contribution rates and the formula used in determining pension benefits.

The following is to explain this difference.

(IMPORTANT REMINDER: The DB component represents 50% of the Hybrid plan.  The other 50% is the DC component that is managed by Manulife.)


DB pension plan:
Under the DB pension plan, members contribute 4.5% up to the YMPE* and 6% above the YMPE.  Pension contributions stop after 35 years of continuous service.

*YMPE: is the Yearly Maximum Pensionable Earnings.  This is set by the government every year.  For 2023, the YMPE is $66,600.

Hybrid plan:
For the DB component of the Hybrid plan, contribution rates vary depending on one’s years of continuous service.  Contribution rates increase with an increase of continuous service.  It is not a fixed rate compared to the pure DB pension plan and it is also a lower percentage contribution rate.

Members contribute:

2% with less than 5 years of continuous service.

2.5% for members between 5 and less than 15 years of continuous service.

3% for members with 15 up to 35 years of continuous service.

Retirement benefits

DB pension plan:
A formula is used to determine an annual pension benefit.  The percentage used is higher than the one for the DB component in the Hybrid plan.

1.75% is multiplied with the AAC** up to the average YMPE.

And 2% multiplied with the AAC above the average YMPE.

**AAC: Annual Average Compensation, is the average earnings based on one’s best 36 consecutive months.  Which is also known as one’s best three years.

Hybrid plan:
For the DB component of the Hybrid plan, the percentage rate to determine a member’s annual pension benefits, is almost half compared to the percentage rate in the pure DB pension plan.

0.595% is multiplied with the AAC up to the average YMPE.

And 1% is multiplied with the AAC above the average YMPE.


Every member in our membership contributes to a Defined Benefit pension plan; currently, almost half are on a pure DB pension plan and the other half are on a Hybrid plan.  (Members hired on or after November 7, 2011, are on a Hybrid plan.)

Even though we all contribute into a DB pension plan, the percentage used to determine contribution rates and retirement benefits are not the same.

Members in a pure DB pension plan contribute more into the DB pension plan and have a higher (almost double) percentage rate amount to determine pension benefits.

For more information regarding your pension plan, please refer to the Employee Pension booklet found on the Alight/HR Connex website.

For Air Canada Rouge employees, your employee pension booklet can be found on ACAeronet by following these steps: ACAeronet > Rouge > Human Resources > Human Resources Tools & Forms > Category: Rouge Pension CUPE > Rouge Pension CUPE.pdf

New phone numbers to contact Alight and Manulife

For questions about your DB pension plan, call:

Alight (English): 1-855-354-6944
Alight (French): 1-855-354-6943

For questions about your DC investment plan or to speak to a financial advisor, call:

Manulife (English): 1-888-727-7766
Manulife (French): 1-888-388-3288

For Air Canada Rouge members***:

Contact the Air Canada Rouge Pension Services at 1-855-538-7799.

***Note: Air Canada Rouge members who flow through to Mainline, remain on the Air Canada Rouge Hybrid Pension plan.

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, are 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.

Safe travels,

Your Component Pension Committee:

Marc Roumy (Chairperson)
Henly Larden (Member)
Caroline Lozeau Gelinas (Member)
Stefanie Falotico (Rouge Member)

Did you know?
Air Canada has 31,442 pensioners and survivors in receipt of a monthly pension and pension amounts totaling $891,933,000 were paid to them in 2022.

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