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FAQ

Below is a list of frequently asked questions.  If you have any question and you'd like to see answer please email us at info@mspp.ca

Q.) Why do I have to work 500 hours to qualify for a monthly pension?

A.) It is the eligibility rule of the Plan.

Q) When am I eligible to apply for termination benefits?

A) A member of the Multi Sector Pension Plan who is under the age of 55, leaves his/her job or terminates from employment and does not contribute to the Plan for more than 24 months is considered terminated from the Plan. At that point the Fund Office issues a termination statement package to the Plan member.

Q) Why do I have to wait 24 months after my termination or resignation date?

A) According to Plan Rules & Regulations, all former participants of the Multi Sector Pension Plan remain a member of the Plan for 24 months after termination of employment before they can receive termination benefits.

Q) Can I apply for termination benefits after reaching at the age of 55 years?

A) No. Vested Plan members are not eligible for termination options after reaching age 55. They are eligible for retirement options when they reach retirement age.

Q) Why did I not receive a termination benefit statement package after the 24 months Break In Service from my termination date?

A) There are various reasons for not receiving your termination benefit statement package even after the 24 months time frame has passed. The common reasons are as follows:

i) In many cases participating employers do not send the termination information to inform the Fund Office of the date you stopped working.

ii) The Fund Office does not have your current address on file and the package has been sent to an old address.

Q) How long does it take to process termination benefits?

A) The Fund Office normally processes termination benefit cheques every two – three weeks after receiving your completed application and supporting documents.

Q) Do I have a limited time frame to submit and apply for my termination benefits?

A) Once you are terminated from the Plan after the 24 months Break In Service, you will receive a Termination Statement and a set of application forms for completion. You have 60 days from the date of the Termination Statement to return the completed forms and supporting documents to the Fund Office. If your application and supporting documents are not received in the Fund Office by the specified time frame, your benefit will be deferred until retirement.

Q) Can I defer my termination benefits?

A) As a vested member you can decide to leave your termination benefits in the Plan and defer payment until you plan to retire after age 55.

Q) What is a Break in Service?

A) Normally, when no contributions are made to the Plan on behalf of a participant for a period of 24 continuous months, a Participant incurs a Break in Service. At this time his or her status as a Participant in the Plan terminates. If a Participant is on a workers compensation leave, approved leave of absence or on layoff and subject to recall or maternity leave, the Participant will be excluded from this rule.

Q) What is Commuted Value?

A) The term "Commuted Value" is used to describe the current value of a pension accumulated at the time of a Participant's termination of participation in the Plan, calculated according to the rules of the Plan and the regulations of the Pension Benefits Act by using a formula. It is the lump sum amount required today to provide the accrued monthly pension calculated at age 65.

Q) Do I have to pay any fee to receive termination benefits?

A) There is no administration fee to receive termination benefit payments.

Q) What is the tax implication to cash or transfer termination benefits?

A) Termination benefits are taxable when paid to an individual. There is no tax implication if the benefit is transferred to another registered retirement investment vehicle.

Q) Does the law protect my benefits?

A) The Multi-Sector Pension Plan is expected to operate indefinitely. However, if for some unlikely reason it is terminated, your pension benefits will be administered as outlined by the applicable Provincial or Federal legislation.

Q) I was not married when I joined the Pension Plan. Why do I need Marriage Certificate to receive a termination benefit?

A) A Marriage Certificate is required to substantiate the proof of your change of family name (for female participant) when you apply for the termination benefits under the married name.


Q) Why do I have to provide Divorce or Separation Documents to receive termination benefits?

A) By law your spouse has a right to a share at your pension benefits earned during the period of the marriage. The Fund Office requires a divorce or separation documents to verify settlement of the spouse's rights and to protect itself from any future claim.

Q) What happens if I do not have the required Proof of Age documents?

A) Plan members sometimes may not have all the Proof of Age documents required for the completion of the application process. A Sworn Affidavit (statutory declaration under oath) document may be provided in this case. Please refer to the list of acceptable Proof of Age documents enclosed with your termination package.

Q.) What is a death benefit?

A.) The Death Benefit is a benefit provided by the Plan in the event of your death. Your Spouse, named Beneficiary or Estate will be eligible for that benefit if you die prior to retirement.

Q.) Who is entitled to receive a death benefit?

A.) A Death Benefit is paid to either the Spouse of the former participant, a designated Beneficiary or the Estate.

Q.) Can a Death Benefit be transferred to an RRSP?

A.) Your spouse can transfer the Death benefit to an RRSP.

Q.) Why does the Fund Office need a completed Declaration of Martial Status in order for benefits to be paid out?

A.) A completed Declaration of Martial Status form is required to confirm the marital status of the applicant.

Q.) When a participant is on an authorized education, WSIB, sick or maternity/parental leave does the Break in Service Rule of the Plan apply?

A.) No, the Break in Service rule does not apply in these circumstances.

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