PAST SERVICE PENSION ADJUSTMENT
Dear Brothers and Sisters,
When you become a Union Member you also become a Member of the Waterfront Industry Pension Plan (WIPP).
Any years of service after 1997 that are recognized as credited service (a pensionable year) for Pension Plan purposes, will attract a PSPA. In order to receive your full credited service for pension purposes for years after 1997, the Canada Revenue Agency (CRA) requires that you have sufficient unused RRSP contribution room to accommodate their recognition of your past service.
In the year that you become a member of the Pension Plan, a Pension Adjustment (PA) will be reflected on your T4 slip at the end of the year. If you join the Plan in 2023, based on the current rate, the PA and PSPA would be as follows:
- PA for the year 2023 – $16,248.00
- Each individual will determine their own PSPA by multiplying their number of Casual Pensionable Years x $16,248.00.
If you join the Pension Plan in 2023 and do not have sufficient unused RRSP contribution room, the administrator will inform you of the options:
- Permanently forfeiting all or a portion of the Casual service; or
- Create sufficient room by making a qualifying withdrawal from your RRSP account.
- This process has nothing to do with the Plan Administrator and is strictly an arrangement between the Member and the Canada Revenue Agency.
Before attaining Union Membership, you should check your Notice of Assessment to see the amount of available RRSP room you have. If it is insufficient, then the most important thing to remember is that in those final years before attaining Union Membership, you should not contribute to your RRSP if you want your Casual Years of Service to count toward your Waterfront Industry Pension. We advise you to consult your Financial Planner.
Your decision on is not reversible at a later date.
Your Benefit Plan Trustees
Bob Dhaliwal, ILWU Canada Hermender Kailley, Local 502
Antonio Pantusa, Local 500 Tom Dufresne, Pensioner Rep.