Active Member
You are an active member of the TCPP if you have joined the TCPP and you are working for a contributing employer that is required to make contributions on your behalf and have not met the termination of membership provisions under the Plan.
Actuarial Equivalence
Actuarial equivalence is an adjustment, based on specific assumptions, for additional early pension payments or various forms of pension payment (other than the normal form) where the overall value of the pension remains the same.
Actuarial Valuation
An actuarial valuation is a report prepared by the actuary to determine the contributions that must be paid into the pension plan to ensure that it meets the regulatory funding requirements and also to determine whether the pension plan’s assets on hand are sufficient to cover its accrued liabilities.
- Assets: Pension plan assets are comprised of pension contributions and net investment income that accrue over time. Plan assets are invested in accordance with the pension plan’s investment strategy. These assets are used to meet the pension plan’s current and future pension payments to members.
- Liabilities: Pension liabilities are the expected cost of paying out future pension payouts for all members based on actuarial assumptions.
Actuary
An actuary is a professionally trained expert who specializes in the calculation of risk. In the case of a pension actuary, they calculate pensions and their value at any given point in time based on unknown future events. They advise the TCPP on such matters as funding and design.
Administrator
The TCPP has administrators for each division, as well as an overall plan administrator. The administrators look after the day-to-day administration of the TCPP. This includes but is not limited to recordkeeping, processing benefit applications and answering members’ questions.
Auditor
An auditor performs financial and pension reviews of the assets to ensure the TCPP is operating within the regulatory guidelines. In addition, the auditor prepares the Plan’s annual audited financial statements.
Beneficiary
The person you have named in a signed document to receive your pension upon your death. This document must be filed with your divisional administrator.
- If you have an eligible spouse, he or she is automatically your beneficiary unless they sign a spousal waiver giving up their rights to your pension.
- If you do not have a spouse or a spousal waiver is signed, you may name anyone as your beneficiary.
- If you do not name a beneficiary, death benefits will be paid to your estate.
Board of Trustees
The Board of Trustees is made up of individuals who are responsible for the oversight and management of the TCPP. They are appointed by the union and/or participating employers.
Canada/Quebec Pension Plan (CPP/QPP)
A Canadian/Quebecois government program that provides you with retirement income. You can start taking your CPP/QPP pension as early as age 60 with a reduced benefit, wait until you reach age 65 for your full benefit, or postpone to as late as age 70 with an increased benefit.
Commuted Value
A lump sum equal to the present value of the future pension payments owed to the member. This option is available to members who terminate plan membership and apply to receive the commuted value prior to attaining age 55 or to those over the age of 55 who have a small pension that falls below the prescribed limit under applicable pension legislation.
Earliest Retirement Date
An individual can retire as early as age 55.
Locking-In
A legislative requirement whereby pension benefits must be used to provide retirement income and cannot be received in a lump sum cash amount.
Normal Form
The normal form of pension is the form of payment under which the member’s accrued pension is entitled to be paid beginning on his/her normal retirement date.
Normal Retirement Date
A member’s earliest normal retirement date is the first day of any month coincident with or next following the 65th birthday.
Old Age Security (OAS)
A Canadian government program that provides you with retirement income starting at age 65.
Pension Contributions
Pension contributions remitted to the TCPP are based on a collective agreement or participating agreement. Employers make contributions on the member’s behalf, and in some cases, employees also make contributions.
Pension Adjustment (PA)
The total amount that you and your employer contribute to the TCPP with respect to a given year. The PA reduces the amount that you can contribute to your personal Registered Retirement Savings Plan (RRSP) in the following year.
Termination of Plan Membership
Other than on retirement or death, membership is typically terminated on the first day of the calendar year following two consecutive calendar years where a member has worked a total of fewer than 350 hours. The options available to the member are to receive a deferred pension or, prior to age 55, to receive a lump sum transfer of the commuted value to a locked-in retirement vehicle.