Plan features

The following are the basic plan features available through CWIPP:
Joining
Joining CWIPP is easy to do. An employer and a union simply sign an agreement indicating that they want to participate in CWIPP.
Contributions
Employers contribute to CWIPP. The union and employer can also agree to allow member contributions. Member contributions can be used to increase pension benefits or to protect pension benefits (by improving the funding position of your participating group within CWIPP). If member contributions are allowed, all members in the employer group must contribute.
The benefit
CWIPP is a target benefit pension plan. This simply means members receive a pension based on a “target” amount. While the target amount of pension is calculated using a formula that takes into account the contributions negotiated by the employer and union, it is not guaranteed. The actual amount of pension received may be higher or lower than the target depending on whether the participating group has enough money invested with CWIPP to cover the pensions earned by members.
Normal retirement
The “normal” retirement age is 65.
Early retirement
Vested members can retire as early as age 55. However, if a member retires early, his or her pension may be reduced by 6% for each year their retirement date falls before age 65. Members in Ontario, Quebec and Manitoba vest as soon as they join the plan. Members in all other provinces vest as soon as they have two years of plan membership or two service units.
Leaving
Vested members receive the value of the pension built up to the date they leave the plan. There are various options for payment of this benefit. Members in Ontario, Quebec and Manitoba vest as soon as they join the plan. Members in all other provinces vest as soon as they have two years of plan membership or two service units.
Death before retirement
If a member is vested and actively employed by a participating employer at the time of their death, his or her spouse (or beneficiary, if they do not have a spouse) will receive the value of the pension built up to the date of death. Members in Ontario, Quebec and Manitoba vest as soon as they join the plan. Members in all other provinces vest as soon as they have two years of plan membership or two service units.
Additional information – including details on optional plan features – will be provided to employers and unions interested in plan membership.