Rogers Defined Benefit Pension Plans (the Plan(s)) Frequently Asked Questions (FAQ s)

Transcription

1 Rogers Defined Benefit Pension Plans (the Plan(s)) Frequently Asked Questions (FAQ s) Rogers is committed to raising awareness about retirement preparedness and improving communication about its defined benefit pension plans. The frequently asked questions that follow do not give details of every benefit or benefit option under the Plan, rather they provide you with highlighted information about the Plan. Additional information is also provided in the Plan Booklet. If there is a question of interpretation about the information given here, the official Plan documents and the laws of the appropriate jurisdiction will govern. For your convenience, the FAQ s have been categorized into the following categories: Introduction to the Pension Plan Benefits of Enrolling in the Pension Plan Making Contributions and Calculating your Pension Benefit Ad Hoc Base Year Upgrades Plan Governance Pension Plan Status Resulting from a Life Event (divorce, legal separation, retirement or termination), transfer to another Rogers Company or Leave of Absence General Retirement Income Questions Introduction to the Rogers Defined Benefit Pension Plans 1. What is a defined benefit pension plan? Defined benefit means that you know what your monthly retirement income will be the end result is defined. You can calculate exactly what you have earned in retirement income by using the plan formula (total pensionable earnings while a contributing member of the plan X 2%). This is in contrast to a defined contribution pension plan or RRSP where you know the amount going into your account but you do not know what it will be worth when you are ready to retire. 2. When will I be eligible to enrol in the Pension Plan? Employees are eligible to join the Plan after a 3 month waiting period. To enrol, complete the Pension Enrolment/Waiver Form located on myhr > My Benefits > Benefits Information and Forms (in sidebar). 3. Are part-time employees eligible for the Pension Plan? Yes, part-time employees are eligible to participate in the Plan after completing a 3 month waiting period. 4. Is the Pension Plan voluntary or mandatory? Enrolment in the Plan is voluntary for eligible employees (excluding employees of Rogers Video or Rogers Media in Manitoba where enrolment is mandatory based on provincial legislation). Employees enrolling or waiving enrolment must complete the Pension Enrolment/Waiver Form. Updated January 2013

2 DB Pension Plans FAQs page 2 5. How do I know if I am a member of the Pension Plan? As a member of the pension plan, you are making contributions to the Plan and your bi-weekly pay advice will show your contributions as a before tax deduction. In addition, every year at the end of the first quarter, you will receive an Annual Pension Summary that will show the benefit you have earned in the plan up to the previous year end. 6. What are some of the aspects I should consider when deciding whether to participate in the Pension Plan? If you do not join the Pension Plan, it is important to consider what other methods you will use to build your retirement income; the Pension Plan is one source of income you will be able to count on when you retire. Being a member of the Pension Plan allows you to earn a predictable pension income; you decrease your monthly tax liability (contributions are tax deductible) and also, you do not bear the investment risk of the portfolio (Rogers bear the investment risk and is responsible for any shortfall that develops within the Plan). If you are saving in other ways (e.g., through a personal RRSP and/or the Rogers Global RRSP), you should determine if the estimated retirement income you may gain from such plan(s) will be equal to or greater than the predictable annual income from the Pension Plan. In addition, you will be required to make the investment decisions for your RRSP arrangements and bear the risks. With a RRSP, at retirement, you will have to arrange to purchase an annuity from you account balance. 7. After I join, can I change my mind later and leave the Pension Plan? No. Once you become a member of the Pension plan, you must remain a member for as long as you are a Rogers employee. Note: As an exception, if you were required to join the Pension Plan before January 1, 2002, you may have a one-time option to suspend your active membership in the Plan. See the complete details in the pension booklet on myhr. 8. I did not enrol in the Pension Plan when I became eligible. Can I still enrol? Yes, you can enrol in the Pension Plan at any time while you are employed by Rogers. Simply complete and submit an enrolment form. 9. How does the Pension Plan pension formula work? The pension formula in the Pension Plan is called a Career Average Earnings (CAE) formula. 1 This type of formula calculates your annual pension amount by taking the total of your pensionable earnings for all the years of credited service that you are a contributing member of the Plan and multiplying it by 2%. 10. What are pensionable earnings? Pensionable earnings include your salary and sales commissions (if applicable) before deductions, but exclude overtime pay, bonuses, freelance earnings, or any other special payments. 11. How is credited service determined? Credited service is earned when you contribute to the Plan. If you are on certain leaves of absence (such as LTD), you may not be required to contribute to the Plan but may continue to earn credited service. If you are a part-time employee, your credited service is determined on a pro-rata basis with respect to the hours you have worked during the year. 12. What is a vesting period? When do I become a vested plan member? 1 Certain plan members may have a pension that is partly or fully determined by another pension formula, depending on the Rogers company(ies) for which they have worked. If you are not sure whether your pension is calculated according to the CAE pension formula only, please refer to the Pension Plan booklet on myhr, in the section titled Where Do I Fit In?

3 DB Pension Plans FAQs page 3 Vesting refers to your entitlement upon termination of employment or death, to the portion of the pension benefit provided by the Company. Effective July 1, 2011, vesting for all members of the Pension Plan is immediate. This means, if you leave the Company, you are entitled to the portion of the pension benefit provided by the Company regardless of the length of time you ve been a member. 13. What is the difference between the DB Plan and the Publishing Plan? Members of the DB Plan who are employees of Publishing are: (1) provincially regulated versus Cable and Wireless employees who are federally regulated; and (2) some Publishing employees who joined the plan prior to January 1, 2004 have been grandfathered under a final average formula rather than the career average formula. Certain other benefits such as the early retirement reduction and the contribution formula are also different. 14. How do I find out more about the Pension Plan? Please refer to the Pension Plan booklet on myhr > My Benefits or access for plan highlights and to access the wealth planner tool. 15. Who should I contact if I have trouble accessing the Rogersmymoney website? If you have problems accessing the Rogersmymoney website, please contact the myhr Support Centre via at rogers.myhrsupportcentre@hewitt.com or by telephone at Benefits of Enrolling in the Pension PLan Plan 16. What is the difference in making contributions to the Pension Plan vs. a RRSP? One of the most important factors of participating in the pension plan is that the Company contributes toward your retirement income; you are not doing it on your own. The table below illustrates what you would need to contribute to a RRSP in order to get the same income that would be earned from the Pension Plan: Age Earnings Annual Pension Plan contribution (before-tax dollars) Annual Pension Income from Pension Plan* Annual RRSP contribution required to get the same pension as the Pension Plan would pay* 23 $ 30,000 $ 1,005 $ 25,200 $ 2, $ 40,000 $ 1,340 $ 28,000 $ 4, $ 55,000 $ 1,901 $ 33,000 $ 7, $ 65,000 $ 2,407 $ 32,500 $ 9, $ 70,000 $ 2,657 $ 21,000 $13,547 * the example assumes enrolment in the Pension Plan in 2013 at the age shown and no change in earnings until age 65. The RRSP estimate assumes you invest the annual contribution shown and your account earns a 4.5% return per year on average until age 65, when you buy an annuity with your RRSP balance at a 4.5% annuity purchase rate. The other major difference between the Pension Plan and a RRSP is that your contributions will not be subject to investment losses. Market fluctuations do not affect the retirement income you have earned. The Company bears that risk and is responsible for any shortfall that develops. 17. Is there a tax deduction and investment return for contributions to the Pension Plan? Contributions to the Pension Plan are tax-deductible and decrease the amount of tax you pay each pay period. Your contributions to the Plan are credited with interest annually. Each year, the interest rate is calculated by the Plan s actuary based on the average yields on certain bank deposits or in accordance with regulations.

4 DB Pension Plans FAQs page 4 Making Contributions and Calculating your Pension Benefit 18. How much do I have to contribute to the Plan to earn a pension? As a plan member, you contribute a fixed percentage of your pensionable earnings. These contributions are made through payroll deductions on a pre-tax basis. As a member, you would contribute 3.35% of pensionable earnings up to the applicable YMPE, (2013 = $51,100) + 5% on the balance of pensionable earnings up to $134, The maximum contribution for 2013 is $5, i 19. How often will I make contributions? Contributions will be deducted from your pay on a biweekly basis. Your pay statement will reflect this deduction as a before tax deduction. 20. How much does Rogers contribute to the Pension Plan? Rogers is responsible for making contributions which, when added to employee contributions, will ensure that there is enough money in the Fund to provide all Plan members with their pension benefits. Each year, the plan actuary determines the amount that Rogers is required to contribute. Based on what s known as the 50% rule, a plan member s contributions may not make up more than 50% of the lump sum value of the pension earned for that same period. If they do, then your pension entitlement may be increased by the excess amount or refunded in cash. 21. What is the YMPE and why is it relevant to me? The Yearly Maximum Pensionable Earnings (YMPE) is the maximum earnings used to determine contributions and benefits under the CPP/QPP. In 2013, the YMPE is $51,100. See question (19) on the YMPE impact on pension contributions. 22. What is meant by the limits on maximum pension in the Income Tax Act (Canada)? The Income Tax Act (the ITA ) defines the maximum pension that can be paid from any registered pension plan, including the DB Plan s. The federal government frequently updates a factor that is part of the calculation of this limit. A registered pension plan can apply a different upper limit on annual pension payable from the plan, as long as it does not go higher than the ITA limit. 23. What is the effect of the recent increase to the maximum pension payable from the Pension Plan? The maximum pension payable from the Pension Plan will affect employees whose pensionable earnings are $132, per year or more and who will have service in the Plan on and after January 1, Since 2004, ITA limits have increased every year. Rogers has made a corresponding adjustment to the Plan that increases the maximum pension payable from the Plan and aligns it more closely with increases in the ITA limit. The amendment improves the pension benefit for Plan members capped by the ITA limit. Let s take a look at an example Meet Chris Chris joined the Pension Plan on January 1, 1990 and will begin her 24th year of service in the plan on January 1, Her annual pensionable earnings are $150,000, which means that she is affected by the maximum pension cap. Chris s pension would be calculated as follows: Year Maximum Annual Allowance Pension Benefit 1990 to 2003: 14 years x $1, = $24, : 1 year x $1, = $1, : 1 year x $2, = $2,000.00

5 DB Pension Plans FAQs page : 1 year x $2, = $2, : 1 year x $2, = $2, : 1 year x $2, = $2, : 1 year x $2, = $2, : 1 year x $2, = $2, : 1 year x $2, = $2, : 1 year x $2, = $2, : 1 year x $2, = $2, Total annual pension on December 31, 2013: $47, per year 24. What is a PA and how does it affect my RRSP contribution room? A pension adjustment (PA) is the amount on your T4 (or Relève 1 in Quebec) that shows the value of your contributions to the Pension Plan for the calendar year. Your allowable RRSP contribution room in the current year is based on your pension plan contributions for the prior year. The PA for defined benefit plan members is determined by Revenue Canada as: annual pension benefit x 9 - $ This means that as a member of thepension Plan, your eligible contribution room to an RRSP is reduced to $ based on the pensionable earnings used to determine your benefit in the Pension Plan. Any income beyond your pensionable earnings will earn you additional RRSP room. For example If your 2012 pensionable earnings were $45,000, your PA for 2013 is calculated as: PA = (2% x $45,000) x 9 - $600 = $7,500 However, your total income for the year with overtime and bonus was $55,000. Your RRSP contribution limit in 2013 is calculated as: 18% x earned income up to set maximum (2013 = $23,820 - subject to change each year) = 18% x $55,000 = $9,900 (this amount does not exceed the current year maximum) Your RRSP contribution room for 2013 would be = $9,900 - $7,500 = $2,400 Ad Hoc Base Year Upgrades 25. What is a pension upgrade and how does it improve pension benefits from the Pension Plan? Periodically, Rogers grants a pension upgrade that sets a new base year for use in the Plan pension formula. The Board of Directors last approved an upgrade which took effect on January 1, 2010 and moved members pensionable earnings from a base year of 2004 to This means that when calculating your pension benefit, the pensionable earnings you earned in 2007 will be used instead of your actual pensionable earnings for each year of membership prior to This has the effect of using your more current earnings for your pension calculation. Your actual benefit amount will depend on your pensionable earnings and your length of service in the Pension Plan. Any resulting increase to your earned pension will be reflected in your Annual Pension Summary, which is distributed in March each year. Let s take a look at how pension upgrades work Meet Pat Pat joined the Plan in January 1, 2002 and will have 11 years of membership on January 1, In 2002, his base salary was $39,000 and it has gone up by $1,000 each year.

6 DB Pension Plans FAQs page 6 Pat s pension at January 1, 2013 (with 2007 upgrade) = $463,000 x 2% = $9,260 per year. The numbers used to calculate Pat s pensionable earnings are given in the table below. Year Pat's Actual Pensionable Earnings Pat s Pensionable Earnings (with 2004 upgrade) Pat's Pensionable Earnings (with 2007 upgrade) 2012 $49,000 $49,000 $49, $48,000 $48,000 $48, $47,000 $47,000 $47, $46,000 $46,000 $46, $45,000 $45,000 $46, $44,000 $44,000 $46, $43,000 $43,000 $46, $42,000 $43,000 $46, $41,000 $43,000 $46, $40,000 $43,000 $46, $39,000 $43,000 $46,000 Total Earnings $484,000 $494,000 $512,000 X 2% X 2% X 2% Pat's Annual Pension $9,680 $9,880 $10, If the upgrade only affects most plan members how do I know if I will benefit? The base year upgrade applies to you if you became a member of the Plan before 2007, and your pension is based on the career average earnings (CAE) pension formula. 2 If you are not sure whether your pension is calculated according to the CAE pension formula, please refer to the Where Do I Fit In? section of the Pension Plan booklet on myhr. 27. Will Rogers continue to upgrade the Pension Plan? Decisions about upgrades are based on periodic reviews of the overall wealth accumulation plans offered to employees. It is not possible to predict the outcome of these reviews in advance. However, Rogers does have a history of approving ad hoc pension upgrades in order to enhance the value of Pension Plan benefits. Pension Plan Governance 28. What is the impact of the financial markets on my pension benefits in the Pension Plan? The investment gains and losses in the market do not affect the pension benefit you have already earned and will continue to earn through your membership in the pension plan. Rogers is responsible for bearing any investment loss in the Pension Plan. 29. Is the money in the pension fund dependent on the Company s performance? No the pension plan assets are separate from the assets of the Company and are held by an independent trustee. In addition, the fund does not hold any shares of the Company directly. The monies in the fund are invested in pooled funds managed by independent investment managers. These 2 If your pension is based on the Final Average Earnings (FAE) pension formula (some employees of Rogers Publishing Limited), your pension is based on your most recent five years of pensionable earnings effectively, it is automatically upgraded each year.

7 DB Pension Plans FAQs page 7 investment managers will invest in Rogers shares only if they believe it is in the best interest of all their clients in the pooled fund. 30. How often are the funds reviewed? The funds are monitored by the Pension Committee of the Company s Board of Directors, who meets on a quarterly basis. Additionally, monthly reports from the investment managers are received and reviewed by the pension management team. 31. What happens if there is a surplus in the pension fund? If there is a surplus (or deficit) in the plan, this will impact the amount the Company needs to contribute to the pension plan in order to keep its promise (the pension formula) to all plan members and retirees. If the surplus is great enough, the Company may be allowed to take a contribution holiday and use the surplus toward its required contributions. However, if there is a deficit, the Company is required to contribute more in order to eliminate the shortfall. Pension Plan Status Resulting from a Life Event (divorce, legal separation, retirement or termination), transfer to another Rogers Company or Leave of Absence 32. What happens to my pension benefit while I am on leave? If you are on LTD, you are not required to make contributions and will continue to earn credited service. If, however, you are on any other type of approved leave of absence (e.g. STD or maternity/paternity leave), you must continue to make contributions in order to earn credited service. 33. Can I make contributions while on leave of absence? Yes, employees can opt to make contributions while on maternity/paternity leave or any approved leave of absence. Contributions will be calculated on pensionable earnings applicable prior to the start of the leave. If you would like to make arrangements to continue contributing during your leave, please contact the myhr Support Centre. 34. What happens to my pension if there is a marriage breakdown? If your marriage or common law relationship ends, your pension benefits are part of your family property and may be subject to division by a court order or a separation agreement. You may be dividing either the value of the pension itself or the value of monthly payments depending on where the separation or divorce occurs. In the event your marriage or common law relationship breaks down after your pension payments have begun, your spouse (married or common-law) at the time your pension commenced may also remain entitled to the spousal survival pension as elected at the time you retired. Since a separation or divorce can affect your pension in a number of different ways, you should always seek legal and financial advice about your options. You must notify the Rogers myhr Support Centre if a separation or divorce has occurred and provide us with a copy of any agreement or order that affects your pension. 35. What happens if I am enrolled in the Pension Plan and leave the Company? Within 4-6 weeks of your termination of employment you will receive a benefit package from the plan administrator outlining the options available to you. If you leave the Company before completing 2 years of plan membership, you are entitled to the cash value of your pension benefit, a transfer of the cash value to a RRSP or you can defer you pension benefit in the plan. Once you have been in the plan for at least 2 years, you cannot receive a cash refund; instead you may choose a deferred pension or a transfer of the lump sum value to a locked in retirement vehicle. If you leave the Company after you are eligible

8 DB Pension Plans FAQs page 8 for early retirement (typically at age 55), you make elect to begin your pension or defer receiving it at a later date. 36. What happens to my pension benefit in the Pension Plan if I die? If you are already retired and in receipt of a monthly pension, the benefit available, if any, will depend on the option you chose at retirement and your marital status at the date of retirement, as well as applicable legislation. If you are employed at the time of death, your spouse is entitled to receive a benefit equal to the commuted value of your pension or a lifetime pension. In the absence of a spouse, a lump sum payment will be made to your beneficiary or estate. If you had already terminated employment from the company and had opted for a deferred pension, your spouse will be entitled to receive a survivor benefit for their life time. If there is no spouse, a lump sum cash payment will be paid to your beneficiary or estate. 37. What should I do when I am ready to retire? When you are ready to start receiving your monthly pension benefits, you must contact myhr approximately 3 months prior to the date you have chosen for retirement in order to request a retirement package. You must notify your manager of your intent to retire prior to contacting myhr. Under the Plan rules, normal retirement pension begins at age 65 3, however, you may opt for Early Retirement from age 55 or when you are within 10 years of an unreduced pension, and receive a reduced pension. You may also opt to retire after your Normal Retirement Date (Postponed Retirement). Please refer to questions 40, 41 and 46 for more information. 38. What kind of options do I have at retirement? There are several options available to you at retirement. If you are married, legislation requires that you choose an option that provides an ongoing pension to your spouse. Alternatively, you can choose to receive a pension for a guaranteed period of 5, 10 or 15 years. This means that if you die prior to the end of the guaranteed period, your beneficiary or estate would receive a lump sum payment or ongoing monthly payments to the end of the guaranteed period. Please note that if you live beyond the guaranteed period, your pension will continue for your lifetime and will cease at your death. 39. What are the implications of taking early retirement? If you choose to retire early, pension payments 4 will begin on the first day of any month of your choice in the 10-year period before your 65th birthday, however, the pension payments will be reduced due to the early start date. If you retire from Rogers under the CAE pension formula, 5 your early retirement pension will normally be reduced by 0.25% per month for each month that your pension start date precedes your 65th birthday. For example, if your pension starts at age 63, your pension is reduced by 6% (24 months x 0.25%). If you terminate from Rogers before age 55 and opted for a deferred pension, you may also choose to take early retirement when you have reached age 55, however, the reduction factor that will be applied to your earned pension will be higher at 0.50% for each month that your pension start date precedes your normal retirement date If you are a member of the former Skyline plan, special rules apply. See Appendix D in the Pension Plan booklet on myhr. Once you reach age 55, you must take your pension benefit as a monthly pension it cannot be paid as a lump-sum transfer except in special circumstances as described on page 23 of the Pension Plan booklet on myhr. For Plan members with service under the FAE pension formula, your early retirement pension for that FAE service will be reduced to account for the early start date. If you start your pension between ages 60 and 65, the reduction is 0.25% per month before age 65. If you start your pension between ages 55 and 60, the reduction is 0.5% per month before age 60 plus 0.25% per month for the period between ages 60 and 65. For example, if your pension starts at age 58, your pension is reduced by 27% (i.e. 60 months x 0.25% + 24 months x 0.5%). If you are a member of the former Selkirk plan, you should also refer to Appendix C in the Pension Plan booklet on myhr.

9 DB Pension Plans FAQs page 9 If you terminate from Rogers prior to age 55 with 30 years of continuous service and you choose to start collecting your monthly pension before age 55, your earned pension will be reduced by 0.50% for each month that your pension start date precedes your 55 th birthday. If you terminate from Rogers after age 55 and you have 30 years of continuous service, please refer to question Who qualifies for the early retirement enhancement? This enhancement eliminates the reduction factor that is generally applied to your earned pension benefit if you are eligible for early retirement under the following conditions: have 30 or more years of service with Rogers (or a company acquired by Rogers) and have attained age 55 or you are within 10 years of an unreduced pension If at your early retirement date you meet the applicable criteria, there will be no reduction in your earned pension. Let s take a look at a few examples When Pat retires at 59 Pat has 12 years of service with Rogers and his total pensionable earnings are $578,000 (average earnings of $57,800 x 10 years contributing to the plan). He decides to take early retirement on his 59th birthday. Because Pat is taking early retirement, his pension will be reduced by 0.25% for each month, or 3% for each year, that he retires before his 65th birthday. Pat s annual pension is calculated according to the formula: (2% x total pensionable earnings) = $578,000 x 2% = $11,560 per year Period of time between age 65 and age 6 years 59: Early retirement reduction calculation: 6 years x 3% = 18% reduction Amount of reduction: 18% x $11,560 = $2, Early retirement pension: $11,560 - $2, = $9, per year Pat s reduced early retirement pension would be $9, per year. The early retirement reduction applies because he does not have 30 years of service. When Jim retires at 59 Jim has 30 years of service with Rogers and his total pensionable earnings are $1,540,000 (average earnings of $55,000 x 28 years contributing to the plan). He decides to take early retirement on his 59th birthday. Although Jim is taking early retirement, his pension will not be reduced because he is over age 55 and has 30 or more years of service. Jim s annual pension is calculated according to the formula: (2% x total pensionable earnings) = $1,540,000 x 2% = $30,800 per year Jim s annual pension would be $30,800 per year. He will receive this pension benefit without any reduction for retiring early. 41. Does the Pension plan allow for cost of living adjustments after retirement? The Pension Plan text has no provision for pension payments to be indexed to inflation (cost of living adjustment). Any changes to the monthly pension would be on an ad hoc basis at the discretion of the Board of Directors, based on the Plan s ability to pay increased benefits. General Retirement Income Questions

10 DB Pension Plans FAQs page Where can I get help planning for my retirement? Shepell-fgi offers various financial services to assist employees (ie. retirement planning, estate and tax planning, budgeting, etc.). Call Shepell-fgi s Financial Support Services at For investment information, contact Manulife at and speak to one of their Education Specialists. You can also take advantage of the online Steps Program at Specific information on the Rogers programs as well as a wealth accumulator and video presentations can be found at How much will I need to retire on? The amount of income you will need at retirement will depend on the lifestyle that you want. For assistance in this regard, you can visit and access the wealth planner tool. 44. Are pension payments subject to income tax? Yes, pension payments are subject to tax according to applicable tax schedule issued by Canada Revenue Agency (CRA) and your personal tax rate. 45. Can I continue working past age 65? The Company has moved to a voluntary retirement model where an employee can choose when to retire. Effective January 2009, the Company no longer enforced mandatory retirement at age What happens to my pension if I continue to work past age 65? The following options are available: You can continue to contribute to the pension plan and accrue additional pension benefit (pension would commence at some future date, but no later than age 71), or You can elect to receive your pension, in which case, you would no longer be eligible to contribute to the plan and accrue additional pension - please contact the myhr support centre to arrange for the commencement of your pension or Under certain conditions, you can elect to suspend contributions to the plan and receive your pension at a future date, but no later than age What is a tax free savings account (TFSA)? As a member of the Pension Plan, can I have an account? Your membership in the Pension Plan does not affect your ability to open and to contribute to a TFSA with the financial institution of your choice. The TFSA allows individuals to contribute up to $5,000 annually on an after-tax basis to a registered plan that shelters investment income and gains from income and capital gains tax. Contribution room to the TFSA will be tracked by Canada Revenue Agency similar to a RRSP. However, your allowable contribution room will be re-instated for any redemptions you make during the year and unused room can be carried forward. You may withdraw funds from the account at any time. 48. What is Canadian Pension Plan (CPP) or Quebec Pension Plan Benefit (QPP) benefit? This is a form of retirement income paid by the government to qualified contributors. This benefit is funded by contributions from both you and the Company once residency requirements have been met. You must have contributed (ie. worked in Canada) in order to be eligible for a pension from CPP/QPP. Visit to learn more. 49. What is Old Age Security (OAS) benefit? This is a form of retirement income paid by the government once certain residency and income requirements are met. The OAS benefit is funded through general tax revenues and is available to all qualified Canadians even if you have never worked. Visit to learn more. 50. What is phased retirement? The Federal Government recently approved regulations allowing pension plan sponsors the option to offer phased retirement. Phased retirement means that a member could receive a portion of their accrued retirement income while continuing to work for their current employer or a related employer. It is

11 DB Pension Plans FAQs page 11 entirely at the plan sponsor s discretion as to whether or not this is an option offered to plan members. At this time, the Pension Plan text does not currently allow for phased retirement. i If you are a Grandfathered Publishing or Skyline member, your contributions will be based on a different formula. Please refer to the pension plan booklet.