financial securityin your future – the lpf pension advantage

get the answers here – frequently asked questions

retiring soon? plan ahead for delay-free pension payments

heading out west to work? it’s easy to maintain your lpf contributions!

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The most significant benefit of the LPF is that it provides you with a retirement income for life – no matter how long you might live.

Think for a moment about how you would be saving for retirement if you weren’t an LPF member.

Since you likely work for many employers in a year, you wouldn’t be eligible to join any single-employer pension plans. You could, however, save for yourself in a registered retirement savings plan (RRSP) or Tax-Free Savings Account (TFSA), but that requires you to set money aside every pay cheque and invest the money yourself – something that requires great discipline and knowledge and interest in investments.

What might happen – and what is currently happening to thousands of Canadians right now – is that you simply wouldn’t save anything at all, at least not until you got much closer to retirement.

And for understandable reasons. People in the prime of their life, in their 30s, 40s and 50s, are also in their prime “financial pressure” years. You have mortgage payments, child expenses, education expenses, car payments, the list goes on. For most people, there is very li�le “pay cheque” le� a�er covering all of these costs. And that makes saving for something as far away as retirement very difficult to do. Yet, your

future financial security depends on saving now for the years in retirement when you’ll have no active employment income.

lpf – taking care of the saving

One of the key advantages of the LPF is that your contributions are remi�ed directly to us – so you never stop building your future pension and never have to worry about how you’re going to set aside money to save.

And because the LPF is a multi-employer pension plan (“MEPP”), you continue to grow your LPF benefits even as you change employment from one contributing employer to another. The MEPP format allows many thousands of smaller employers in our industries to offer pension coverage by pooling resources under a central plan. It’s cost-effective, convenient and provides you with a lifetime pension in retirement.

You can even grow your pension if you’re between jobs. The self-payment option lets you make a direct contribution to the LPF yourself – so you can continue to earn additional Service Credits even if you have temporarily stopped working.

lifetime income security

The most significant benefit of the LPF is that it provides you with a retirement income for life – no ma�er how long you might live.

If you save through an RRSP or a defined contribution pension plan – where you have to actively choose and manage your investments – the amount of your

Financial security in your future – the LPF pension advantage

winter 2014

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retirement income will be based in part on the ups and downs of your investments. And that’s not all. With no lifetime income guarantee – and with average life expectancy rates in Canada continuing to rise – you run the risk of outliving your savings unless you manage and budget your money carefully.

With your LPF pension providing retirement income for life, you simply can’t get that type of income security from an RRSP or a defined contribution pension plan. And as medical advances continue to extend life expectancies even further, this type of financial security will only grow in value.

And remember: the LPF is the only construction industry plan operating in the region that provides an early retirement pension as early as age 55. It also offers the most generous disability pension of all area trade pension plans – which is important financial protection for you and your family should you ever become disabled.

remember your other sources

of retirement income

While your LPF pension can provide significant financial security in retirement, it likely won’t be your only source of income. So as you plan for your retirement, remember these three other sources of income.

1. Canada Pension Plan (CPP)The maximum CPP pension payable at age 65 is now more than $1,000 per month, payable for your lifetime, and it is increased with inflation each year. The CPP lets you start your pension as early as age 60 (reduced due to the early start date) or

as late as age 70 (increased due to the later start date).

Note that the amount you’re entitled to may be less if you didn’t work a full career as a contributor to the CPP. You can register on the Service Canada website (www.servicecanada.gc.ca) and get full access to a history of your CPP contributions and an estimate of your CPP pension if you retired today.

2. Old Age Security (OAS)The Old Age Security (OAS) Pension is a monthly lifetime benefit payable at age 65. If you’ve lived most of your life in Canada, you may be eligible to receive the maximum OAS benefit, which is currently about $550 per month. This benefit increases each quarter based on cost of living increases.

You can voluntarily delay receiving your OAS benefits for up to five years, with the benefits payable increased by 0.6% for each month that your benefit start date is delayed. This means that your OAS benefits could be 36% higher if you delay it for the maximum five-year period.

OAS benefits are income-tested, which means they’re reduced once you hit a certain level of annual income in retirement. If your income is about $70,000 or more, you must repay part of your OAS benefit (this is o�en referred to as a “clawback”). Your entire OAS pension will be “clawed back” if your net income reaches about $115,000 or more.

3. Your personal savingsYour personal savings represent the final part of your potential retirement income. These include all your non-pension savings, such as money in a:

•Registeredretirementsavingsplan(RRSP)• Tax-freesavingsaccount(TFSA)•GIC,bankaccount,investmentaccount, or other non-registered investment

Your personal savings might also include a home or other property that you own – as the value of this real estate can greatly contribute to your financial security in retirement.

Our qualified Pension Benefits Analysts respond to thousands of LPF member questions each year. Here are answers to some of the most common ones we receive.

If I’m an active member and still working, can I apply for my pension and continue to work?If you’re an active member and want to apply for your retirement benefit, you must stop working for at least 30 days and become a Pensioner for a minimum of one month before you can continue to work and receive your LPF pension at the same time. In addition, none of your LPF contributions can be received for the month of your effective date of retirement.

If you are interested in taking advantage of this option, you must complete a “Re-Employed Pensioner- Notice of Election” form along with your pension application.

The form is available at Local Union offices, at our LPF offices or on our web site.

If I choose to receive a pension and continue to work in Covered Employment, what are the tax implications?Your employer is required to issue you a T4 reporting your pension adjustment (PA) amount. The amount of this PA will reduce your RRSP contribution limit for that year. In addition, you will also receive a T4A from the LPF, reporting your annual LPF pension income.

If you plan to work in Covered Employment and continue to receive your LPF pension, we strongly suggest that you get advice from a tax expert before finalizing your decision.

I’m currently going through financial hardship. Can I get my money from the Pension Fund?Unfortunately, you can’t apply for a financial hardship

withdrawal if your pension entitlement is still in the LPF. However, if you have already terminated your LPF membership and transferred your pension to a Locked-in Retirement Account, Life Income Fund, or Locked-in Retirement Income Fund, you can apply directly to the financial institution that holds the locked-in account.

The categories that may qualify you for a financial hardship withdrawal are as follows:• medicalexpenses,includingexpensesfor renovations or alterations to a principal residence made necessary by illness or physical disability;• rentormortgagearrears;• firstandlastmonth’srent;and• lowexpectedincome.

I’ve stopped working under the LiUNA. What happens to my pension?If we don’t receive LPF contributions on your behalf for 24 months, you become eligible to terminate your LPF membership. Termination is not automatic, and you must request to be terminated if you wish to transfer the value of your benefit to a locked-in retirement savings arrangement.

If you don’t wish to transfer your LPF benefits, you do not need to request a termination. You will remain an LPF member until you are ready to apply for a retirement benefit.

Get the answers here –frequently asked questions

Changes to OAS – higher eligibility age is coming

Starting in 2023 and ending in 2029, the age of eligibility for OAS will be increased from age 65 to age 67.

These adjustments will only affect those who were less than age 54 on March 31, 2012.

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This Newsle� er outlines topics of interest and timely information for Members of the Labourers’ Pension Fund of Central and Eastern Canada. For an exact and complete description of your pension and entitlements, contact the Labourers’ Pension Fund offi ce to obtain a copy of the Rules and Regulations of the Pension Plan, and any other documents referred to herein. If the information provided in this Newsle� er diff ers from that contained in the Rules and Regulations, the Rules and Regulations will be the governing document. You may also contact the Fund offi ce with any Newsle� er inquiries.

Plan Registration Number 0573188Labourers’ Pension Fund of Central and Eastern Canada1315 North Service Road East6th Floor, Oakville ON L6H 1A7

Mailing Address:PO Box 9002, Lakeshore West POOakvilleONL6K0G1T: 289.291.3663F: 289.291.0651Toll Free: 1.866.932.1100E: pension_fund@lpfcec.org W: www.lpfcec.org

Publications Mail Agreement 6432905

We need YOUR information to serve you better

We want to provide you with the very best in member services, but we need your help to do it! Specifi cally, we need:• yourbirthdate• currentmailingaddress• youremailaddress• spousalandbenefi ciaryinformation.

By providing us with this information and keeping it up-to-date, we’ll make sure that you always receive your benefi t statements, T4 slips and important notices from LPF – and that any applications or requests you make are handled without delay.

Just log on to Access LPF on the home page of the plan member website to make your changes!

BoardofTrustees

Chairman Joseph S. Mancinelli

Vice Chairman Carmen Principato

Douglas SerroulLuigi CarrozziManuel BastosJack OliveiraCosmo Mannella

Administrator David D’Agostini

Heading out west to work? It’s easy to maintain your LPF contributions!

If you plan to work temporarily out west under either the Labourers’ Pension Fund of Western Canada or the BC Labourers’ Pension Plan, you have the option of transferring your monthly pension contributions back to the LPF and continuing to accumulate Service Credits, without any break in service.

We call it our “Money Follows the Worker” program. The Western Canada or BC Plan will collect contributions on your behalf at your applicable rate under the LPF – and then send these contributions to us for a period not to exceed 24 consecutive months. This time period may be extended for an additional 12 months provided the Western Canada or BC Plan gives prior approval and you continue your membership with your home local union.

If you choose not to participate in this arrangement, and you are temporarily working out west (to a maximum of 24 consecutive months), you will not incur a break in service under the LPF. However, you will also not accrue any additional LPF Service Credits during that time.

To participate in this arrangement, simply visit the LPF website and download and complete a Contribution Transfer Authorization Form. If you have any questions about the program, please call us from 8am to 4pm, Monday to Friday at 289-291-3663 – or toll free1-866-932-1100.

There are a number of pension-related services that you and other LPF members need from time to time – and we’re always here to help. Our services include:• answeringquestionsaboutyourbenefi ts• explainingLPFrules,orpensionlegislation changes• providingpensionestimates,or• helpingyoucompleteapplicationsforitems such as your pension benefi ts, workers’ compensation, or self-payments.

Our qualifi ed Pension Benefi ts Analysts provide direct services by phone or on a walk-in basis at the LPF main offi ce:• 1315NorthServiceRdEast,6thFloor,Oakville, open from 8am to 4pm, Monday to Friday. Tel: 289-291-3663 or toll free 1-866-932-1100

Our online services at www.lpfcec.org and mobile apps for Apple, Android and Blackberry devices provide a 24/7 access to your pension information, allowing you to update personal information, obtain a current or a projected pension estimate, submit a Worker’s Compensation claim, check your pension contributions or apply for a pension benefi t.

At your service –every business day

Retiring soon? Plan ahead for delay-free pension payments If you’re thinking about retirement in the near future, there are a few easy steps you can take to ensure that your LPF pension application goes smoothly.

For any death benefi t application, a copy of your will is required. And just in case, be sure to keep important documents like your will and Marriage Certifi cate in a safe place, and ensure family members know where these documents are located.

1. Apply at least two months in advance of your retirement date –

preferably three.

2. Make sure you have certifi ed proof of age documents for both you and

your spouse (if you have a spouse)

3. If you are married, make sure you have a copy of your Marriage Certifi cate. If you don’t, you will need to apply for one from

the province or other jurisdiction in which your marriage was registered.

4. If you are in a common-law relationship,provide proof that you have been living

together continuously for a period of at least three years. Proof includes things such asbank statements, utility bills, mortgage or

rental agreements under both of your names.

5. If you are separated or divorced, arrange to have a certifi ed copy

of your divorce papers and/or separation agreement.

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