The Pension Committee wants to welcome all new members from Mainline and Rouge. Now, let us talk about your retirement!
In an effort to welcome all new members to Air Canada, this bulletin applies to all members both at Air Canada and Rouge, who have been hired after November 7, 2011.
It is never too early to plan for your retirement. In fact, the sooner you prepare for your retirement, the greater opportunity you have to take advantage of an investment’s best friend, which is: time. The more time you have, the better it is for your money to grow.
Members hired after November 7, 2011, are on a Hybrid Pension plan.
A Hybrid pension plan consists of two equal components: Defined Benefit (DB) and Defined Contribution (DC).
You can increase your contributions in the DC component of your Hybrid Pension plan. (Members cannot increase their contribution amounts for their Defined Benefit (DB) pension.)
The default setting is at 1.5%, but depending on one’s years of service, members can increase their contribution amount for the DC component of their Hybrid Pension plan.
The Company matches the amounts members contribute into the DC component of their Hybrid Pension plan. Therefore, the more you contribute to your DC plan, the more money you get from the Company.
As an example: a member that has 2 years or less of continuous service, who contributes $100 to their DC pension, will receive a $100 from the employer. Therefore, the member will have $200 in their DC pension account.
Company matching amounts for DC contributions:
To maximize your DC contribution amounts, follow these steps:
For Mainline Employees: HR Connex > Retirement > My DC Pension > Manulife > My Account > My Contributions > View/Change My Payroll Deduction Amount.
For Rouge Employees: Login to Manulife > My Account > My Contributions > View/Change My Payroll Deduction Amount
Regards and in solidarity,
Your Component Pension Committee:
Marc Roumy (Chairperson)
Henly Larden (Member)
Caroline Lozeau Gelinas (Member)
Alex Habib (Rouge Member)
Did you know?
Only 27% of members on a Hybrid Pension plan are contributing to the maximum amount. Therefore, 73% of members are not contributing to the maximum and are missing out from receiving extra money from the company.