Suspension of Benefits
The plan is being amended as of September 1, 2016 so that the suspension of benefit rules no longer apply to those who start their pension at or after age 65, and those who have already started their pension at or after age 65. In addition, the plan eligibility rules are now modified to exclude pensioners who start their pension on or after age 65 while giving them the option to rejoin the Plan and suspend their pension, at least up to age 71 when pension payments must start.
Suspension of Benefit Reminders
If an individual who is receiving a pension from the CSI Pension Plan provides services for compensation to a school that participates in the CSI Pension Plan, he or she is considered a re-employed pensioner and subject to the plan’s provisions. This applies whether the person is employed by the school, self-employed or hired through a third party, such as a personal service corporation.
Current provisions require suspension of benefit when a rehired retiree completes 60 full time equivalent working days in a plan year, or earns compensation equal to 35% of the YMPE ($19,063 in 2015/16) in a plan year.
Upon becoming a suspended pensioner the pension payable in any following month in which there is employment will be suspended. The rehired pensioner re-enters the CSI Pension Plan as soon as the pension is suspended. Upon re-entry the rehired pensioner starts to accrue a new pension, with contributions remitted by both the employer and the rehired pensioner.
There is no limit on the number of years in which there can be employment following retirement. However, no suspension of pension can occur on or after December 1 of the calendar year in which a rehired pensioner turns 71.
The suspended pension resumes without any adjustments, with the exception of the indexation of post-retirement benefits, the first day of the calendar month after the calendar month in which the suspended pensioner ceases to be a suspended pensioner. The pension earned during the period of suspension can commence based on the new service, Final Average Earnings and early retirement reductions applicable at commencement; the new pension will be paid in the same form as the existing pension.
Definition of Compensation Updated
The Trustees have reviewed the Plans definition of compensation in regard to clarifying the treatment of one-time payments to make sure the Plan aligns with the Income Tax Act Salary Deferral Arrangement rules. Based on the review the Plan has been amended effective April 1, 2016 to provide that income paid (and reported on a T4) in any given year that should have been included and reported as income in prior years, will be excluded from income in the year in which it was paid for purposes of the Plan. The amendment also allows variable recurring compensation but excludes one-time non-recurring (ad-hoc) payments.
Contacting Us for Support
More information about our benefit plans and past Updates is located on our website at www.csionline.org. Select “Employee Benefits” and the appropriate plan. As always, if you have questions, please contact Marcy Sterken at 877.274.8796, ext. 231, or 616.284.3231, or by email at email@example.com.