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 ERIP, unfortunately, some did not buyback their pension following their leaves; this attributed to lacking the required numbers to be able to retire early.
After a leave of absence, please call to Alight to speak to a representative to initiate your pension buyback, whether you are on a Defined Benefit or 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 Mainline and Rouge members.
Share Trust Update:
In October of this year, the company posted a Share Trust Update on Aeronet. The company stated it is waiting for certain conditions to be met, such as a positive tax ruling, from the CRA and other regulatory bodies, and that no VSP’s or lump sum payments for pensioners will be offered until such time. They do not foresee any decisions will be made before at least the third quarter of 2024 and there is also the possibility of further delays.
This process is complex. Members who seek further details are recommended to read the Share Trust Update and the Share Trust FAQ on Aeronet. It can be found by using the search bar on Aeronet or finding it on the main page on Aeronet under Spotlight!.
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.
As it is December, we would like to wish everyone Happy Holidays and a very Merry Christmas, as well as safe travels to all who will be working.
Your Component Pension Committee
Marc Roumy (Chairperson)
Henly Larden (Member)
Caroline Lozeau Gelinas (Member)
Stefanie Falotico (Rouge Member)
Did you know?
The number of members who retired within June, July, and August of 2021 by participating in the ERIP program, (429 retired), was almost the equivalent of the number of members who retired in the previous two years.
For 2023, 51 members have retired. Click HERE to look at the breakdown between bases. Best wishes to all retired members.