Are you a part of the Teamsters Canadian Pension Plan?
To improve your retirement income and to make every one of your hard-earned dollars count
– the TCPP is the pension plan that works.
Message from the Chairman
Teamsters has been serving its members for over a century to provide fair opportunities in the workplace, equality and security. As part of our commitment, it is of paramount importance that our members have access to a pension during their retirement years. This is what Unions do – to represent our members’ best interests – now and into the future!
Are you a part of the TCPP?
Formed with just 500 members in 1981, The Teamsters Canadian Pension Plan (TCPP) is a good plan and a powerful arrangement allowing any size group to maximize its retirement benefits to members while providing many advantages. To improve your retirement income and to make every one of your hard-earned dollars count – the TCPP is the pension plan that works.
The structure of the TCPP
The principal components of the structure are the Board of Trustees, the Divisional Retirement Committees and the professional consulting organizations that are called upon by the Board and the Committees to help carry out their activities. The Board can create subcommittees on an ad hoc basis to deal with specific issues that require in-depth analysis.
Evaluating the Health of the Plan
Learn what actuarial valuations are and how and why they are prepared for your Plan.
Choosing your Retirement Age
When people think about retirement, age 65 comes to mind. While age 65 may be the normal retirement age for most pension plans and government benefits, retiring before or after age 65 are
options that should be considered.
There are several factors to consider when choosing when to retire:
- Continued Standard of Living
- Change in Income and Expenses
- Family Needs
- Access and Eligibility for Government Benefits
- Tax Implications
In previous publications, we outlined the three pillars of Canada’s retirement income system: Government Benefits, Personal Savings, and Workplace Pension Plans. You do not need to retire and start drawing from all three of these pillars at the same time, but you should include all three pillars in your retirement planning. Additionally, if you were a member of other workplace pension plans, you may be able to commence your pension from other plans before fully retiring from active employment under the Teamsters Canadian Pension Plan (TCPP).
Normal Retirement Age under the TCPP
The normal retirement age under the TCPP is age 65. If you start your monthly benefit at your normal retirement age, there is no adjustment to your benefit.
Early Retirement under the TCPP
You can retire as early as age 55 with a reduced pension. Your monthly benefit will be reduced to account for the extra months of payments you will receive before age 65. More monthly payments are expected to be paid when you start receiving your pension early. This reduction is just to keep the overall expected value of your pension that starts at your early retirement age the same as the expected value of your pension starting at age 65. Therefore, this reduction should not be seen as a penalty for retiring early. Some members may be eligible for an early retirement subsidy which, in effect, raises the value of your pension by applying a smaller early retirement reduction.
Late Retirement under the TCPP
You may postpone your retirement up to age 69 or 71, depending on the employer. During this time, you may continue working with an active employer under the Plan and therefore continue earning a benefit, which would increase your monthly pension when you do retire. However, if you are no longer working for an active employer under the Plan, your monthly benefit will not be any higher than if you were to retire at your normal retirement age unless you were employed in the province of Quebec, which requires that your pension be increased due to delayed retirement after age 65.
Whenever you plan to retire, don’t forget to call your Divisional Administrator in advance to request a retirement package. Retiring from active employment does not automatically retire you from the TCPP, as it is up to you when you would like to commence your pension.
Deciding when to retire is a personal and important decision, so we encourage you to seek financial advice. And as always, the Divisional Administrator is here to help explain your options.
- Evaluating the Health of the Plan (Video)
- Choosing your Retirement Age
- Investments (Video)
- 5 Reasons Why Your Plan Provides More Than an RRSP
- Employment Changes (Video)
- You Asked (FAQ)
- Part 5: Replacement Ratio
- Financial Position of the Plan (Video)
- COVID-19 and your Pension Plan (Video)
- COVID-19: Update for Plan Members
The TCPP is the pension plan that works.
Improve your retirement income and make every one of your hard-earned dollars count.
Get information about the Teamsters Canadian Pension Plan and other retirement related information