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					Multi-Sector Pension Plan

 Collectively Building
 A Secure Retirement


                    CUPE Research
Canada’s 3 Sources of Retirement Income

 Public pension plans


 Workplace pension plans


 Personal savings




                                          2
Public Pension Plans Form the Foundation
of our Retirement


      CANADA/QUEBEC PENSION PLAN

             OLD AGE SECURITY

    GUARANTEED INCOME SUPPLEMENT



                                           3
Every Worker Deserves a Workplace Pension
Plan to Build on this Foundation

                Workplace
               Pension Plan


                 CPP/QPP
                OAS and GIS

                                            4
To Build a Secure
Retirement
                      Personal
                      Savings
                     Workplace
                    Pension Plan



                     CPP/QPP
                    OAS and GIS
                                   5
Why a Workplace Pension Plan?

  Average monthly benefits paid from public plans:
       Canada/Quebec Pension = $501.82
             Old Age Security = $489.57

  Many, especially women, will not receive maximum
  benefit from public pension plans



                                                      6
We Need a Workplace Plan that:

   Works for workers

   Pays retirement wage for life

   Defines the retirement wage we earn

   Allows for early retirement

   Protects our retirement wages


                                          7
Multi-Sector Pension Plan (MSPP):

   100% union-run (CUPE and SEIU)

   Available to bargaining units of any size

   Collective approach

   Retirement wages based on set formula




                                                8
MSPP – Current/Future Service Feature

 $100 of contributions = $1.55 of retirement wage
                         at age 65

 Contributions     =     Monthly Retirement Wage
      $20,000       =      $310.00
      $30,000       =      $465.00
      $40,000       =      $620.00



                                                     9
Multi-Sector Pension Plan
 A major feature of the plan may increase your retirement
 wage by as much as $186.20 per month at age 65

 Based on years of service with employer at time employer
 commences participation in MSPP




                                                        10
MSPP – Past Service Feature

 $26.60 / year of past service to a maximum of
 7 years ($186.20) at age 65

 Past service benefit pro-rated where combined
 contribution rate is less than 8% during 12 months prior
 to retirement




                                                       11
MSPP – Past Service Feature

     Total         Future                             Basic
 Contributions     Service       Past Service   Retirement Wage


  $20,000    =   $310.00     +    $186.20 =         $496.20



  $30,000    =   $465.00 +        $186.20 =         $651.20



  $40,000    =   $620.00 +        $186.20 =         $806.20




                                                                  12
MSPP – Retirement Before Age 65

 Permitted as early as age 55
 6% reduction for each year of early retirement:
                       Age 64 = 6%
                       Age 63 = 12%
                       Age 62 = 18%
                       Age 61 = 24%
                       Age 60 = 30%



                                                    13
MSPP – Leaving Before Retirement

 You are no longer an active Plan
  participant on the day “a break in service”
  occurs.
 A break in service is when there are no
  contributions for 8 consecutive months.



                                                14
MSPP – Leaving Before Retirement

With 24 months of “vesting service” you can:
 1. Collect pension wage at a later date
 2. Move value to locked-in pension vehicle
 3. Move value to new employer’s plan




                                               15
MSPP – Leaving Before Retirement

With less than 24 months of “vesting service”:

 Your contributions with interest are refunded




                                                  16
MSPP – Death Benefits

With 24 months of “vesting service”:


 Before retirement – spouse/beneficiary can receive
 monthly pension wage or lump sum payment

 After retirement – based on option chosen at
 retirement




                                                       17
MSPP – How To Join the Plan

 Negotiate required language into your collective
 agreement

 Employer must sign Participation Agreement

 Provide copies to Fund Office

 All employees must participate




                                                     18
 MSPP – Contributions to the Plan
 Both workers and employer must contribute

 Employer can contribute more but not less

 4% minimum combined contribution rate

 10.5% maximum combined contribution rate

 Combined contribution rate of 8% recommended to allow for
  full past service benefit on retirement

                                                              19
MSPP –Responsibilities of the Local

  Name a pension contact
  Understand the Plan
  Grieve failure to remit proper
  contributions and/or information if
  necessary
  Verify membership participation
  annually
  Communicate with your Trustees
                                        20
MSPP – Plan Stats December 31, 2008

Currently 88 participating employers:

CUPE – 68 employers covering 5,120 active employees

SEIU – 17 employers covering 871 active employees

CAW – 1 employer covering 2 active employees

NAPE – 1 employer covering 17 active employees

COPE – 1 employer covering 1 active employee

                                                      21
MSPP – Plan Stats December 31, 2008


  The MSPP fund totalled $25,476,519.69




  Currently 65 pensioners




                                           22
MSPP – CUPE Trustees

Ian Thompson, Co-Chair
Darcie Beggs, Trustee
Jackie Dwyer, Trustee
Jean-Charles Lavigne, Trustee
Ande Mele, Trustee
Nancy Parker, Trustee
Peter Paulekat, Trustee
Linda Thurston-Neeley, Alternate Trustee

                                           23
MSPP – Additional Information

CUPE Trustees

CUPE Research

CUPE Service Representatives

www.mspp.ca


                                24

				
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