Are you considering changing jobs?

As a member of a multi-employer pension plan, it is possible to change jobs without leaving the TCPP, as long as you are working for a participating employer. However, if you were to stop working with a participating employer, you should consider your options with regards to your pension. It may be tempting to take your money out of the plan and invest following the advice from your financial advisor or even friends and family. However, depending on your retirement goals, there may be other options that could result in a more stable retirement income.

After leaving your employment under the TCPP, if you were covered under a collective bargaining agreement, you will remain an active member of the TCPP until the end of two consecutive calendar years during which you had less than a total of 350 hours of employment with participating employers. The hours you work at your new job will not affect this condition, as long as you are not working for a participating employer. If you were covered under a participating agreement, you will be terminated once you leave your employment under the TCPP.

Once you are no longer an active member, your membership with the TCPP will terminate and you will receive a pension statement with your options within a year.

Quebec regulations differ from other provinces. Your termination benefit statement will be sent within 60 days of leaving employment and the age to receive a transfer value may differ from below. Quebec members should contact their divisional administrator for details.

Your pension statement will provide the following options:

1. Wait until retirement: You can keep your pension benefit in the plan until retirement age and receive a monthly pension. This option can be stress free as the TCPP will continue to professionally manage your benefits and you will receive a monthly pension with the amount known in advance for your lifetime.
2. Transfer the value of your pension to a locked-in savings arrangement: If you are under the age of 55, you can transfer the current value of your pension out of the plan into a locked-in savings arrangement, such as a Locked-in Retirement Account (LIRA). The money you transfer into this account is locked-in, meaning it cannot be accessed until retirement and must be used as a source of retirement income. This requires a bit more individual management since you are in control of how your money is invested. It is recommended that you speak with a financial planner to determine the level of risk and expenses you are comfortable with.
3. Take a lump sum cash payment or transfer your pension money to your RRSP: This option may be available or mandatory if the value of your pension benefit is small and falls below the limit set under law. This is similar to a locked-in savings arrangement as you will take on the investment risks and fees if you decide to take this option.

Your pension from the TCPP is meant to enhance your retirement income, even for members leaving before retirement. From the choices outlined above, the “best” option will be different for each individual depending on their situation, so be sure to consider your options carefully.

Contact your divisional administrator for more information, and always remember to keep your contact information updated with them to not miss out on any important documents.