About the Canada Pension Plan

General Provisions

  • The employer elects to participate in the 5.55 percent, 7.00 percent, or 8.05 percent plan.
  • All eligible employees contribute 5.55 percent, 7.00 percent, or 8.05 percent of their salary to the plan through payroll deduction.
  • The employer matches the contribution.
  • Contributions are sent to the plan office and are carefully invested by plan trustees and used to pay benefits.

 

A participant who has contributed to the plan after July 1, 2012, (after May 31, 2010, for Manitoba) is vested.  Prior to these dates the vesting requirement was two years of service.  A vested participant is entitled to a lifetime retirement benefit.
 

Pension Benefit

  • A pension benefit is paid at retirement with the option to have benefit payments continue to a surviving spouse or contingent beneficiary.
  • This benefit is payable at age 65 or as early as age 55. The annual benefit is 1.90 percent times the best five consecutive years average annual earnings for service completed after September 1, 2010, multiplied by years of service plus 1.84 percent times the best three consecutive years average annual earnings leading up to September 1, 2010, multiplied by years of service.
  • Employees earn adjusted credited service based on the plan selected by the school. Fulltime employees earn 1.0 year of service in the 8.05 percent plan, 0.87 years of service in the 7.00 percent plan, and 0.69 years of service in the 5.55 percent plan.
  • For early retirement at ages 55-59, the annual benefit is proportionately reduced.

 

Preretirement Surviving Spouse Benefit

  • A lump sum amount is paid to the surviving spouse, beneficiary, or estate of a vested employee.

 

Minimum Benefit

  • The balance of all employee contributions plus earned interest (minus any pension benefits received) will be paid to your beneficiary.

 

Cash Refund

  • Upon termination of employment, the balance of all employee contributions plus earned interest can be taken out of the plan if the participant is not vested.
  • If vested, the present value of the pension benefit plus the additional benefit, if any, may be taken out of the plan.

 

For additional information, please email Marcy Sterken, Canada pension specialist, at msterken@csionline.org, or write us at:

Canadian Pension Plan and Trust Fund
3350 East Paris Ave. SE
Grand Rapids, MI 49512-3054