Posted on by CUPW Vancouver

SIX MYTHS ABOUT OUR PENSION PLAN

SIX MYTHS ABOUT OUR PENSION PLAN

Myth one – there will be no Canada Post Pension Plan for me when I retire

This is not true. You will be able to access your Canada Post Pension Plan when you retire, despite what Canada Post is saying.

The pension plan has been affected by the global economic crisis, and that has put some financial pressure on the plan. Some fixes may need to be made to the plan but these fixes do not include changing it to a defined contribution pension plan or reducing your Canada Post pension plan income upon retirement.Your Canada Post pension plan will be there when you retire.

Myth two – I should retire now given Canada Post’s latest “offer”

This is definitely not true. Canada Post’s latest offer is just that -an offer. It has not been accepted by the Union. And, since at this point there is no final selection arbitrator, it has not been put to the Arbitrator.

You do not need to retire now. In fact, unless you have more than 35 years of pensionable service, if you retire now, you will be reducing your retirement income.

If anything changes in regards to the Canada Post Pension Plan, there will be information from National CUPW and information on the Vancouver Local CUPW web site.

Myth three – the Canada Post Pension plan is gold plated

Again this is not true. Retired postal workers are not living in the lap of luxury.

Individual postal workers and Canada Post both contribute money to our pension plan. So part of the pension plan is our contributions. The other part is Canada Post’s contributions. Canada Post’s contributions are our deferred wages. Years and years ago, postal workers made the decision to support a pension plan instead of getting higher wage increases.

The Canada Post Pension plan for all CUPW members is a defined benefit pension plan.This means that we are able to calculate our pension income, and not be dependent on the ups and downs of the stock market for our retirement.

Myth four – I can retire if my age and yers of service add up to 85

This is not true. You can retire without a penalty in the following circumstances:

  • you are over 55 and have more than 30 years of service
  • you are over 60 and have more than two years of pensionable service

Retiring without a penalty means your pension is based on your years of service, and no reductions are taken for early retirement.

Myth five – My pension earnings include overtime

Again this is not true. Pension deductions are taken from your earnings. This includes, but is not limited to:

  • wages
  • extended hours for part timers (up to 8)
  • rest period allowance for letter carriers and MSC’s
  • lead hand differential
  • bilingual bonus

The following are not included as earnings:

  • shift and weekend premiums
  • boot and glove allowance
  • overtime pay
  • householder premiums

Myth six – If you get fired you lose your Canada Post Pension

This is not true. If you get fired you are still entitled to your Canada Post pension.

However, it may be reduced because you may not have attained the age and years of service formula.