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Member Terminating Employment

A Plan participant ceases to be an active Pension Plan member on the day "a break in service" occurs. A break in service occurs, for Ontario members, when the member elects to terminate Plan membership. A participant cannot elect to terminate plan membership while continuing to work for a contributing employer. Such elections are also not permissible where the member's employment relationship continues in a number of circumstances, and is not permissible until no contributions to the fund have been made on your behalf for 24 consecutive months.

Participants who terminate employment, outside of Quebec, have the following options:

1.         leave the money in the Pension Plan and collect a deferred pension;

2.         transfer the commuted value of the benefit to a locked in RRSP or;

3.         transfer the commuted value to a new pension plan if the new plan will accept it.

Since the Plan is a multi-employer Pension Plan, a participant re-employed by another contributing employer can continue in the Plan as if termination did not occur prior to incurring a break in service.

Most people move from one job to another for better employment opportunities or due to the termination of their employment. Changing jobs affects your pension participation. When Multi Sector Pension Plan members in Ontario who are under the age of 55 quit their job or are terminated from their employment and do not contribute to the Plan for more than 24 months, may elect to terminate their membership in the Plan. At this point the Fund Office issues a termination statement to the Plan member stating the benefit options available to them. You will receive a Termination Statement and a set of application forms to apply for your benefits 24 months after termination of employment. You have 60 days to return the completed forms to the Fund Office.

Options for Participants at Plan Termination:

Plan members may elect to commence an actuarial reduced pension based on contributions plus any Past Service Benefit in the Plan after reaching at the age of 55 years. Members who terminate their Plan membership before age 55 may elect to transfer the Commuted Value of their pension benefits to another eligible retirement investment vehicle under the Portability Option. You may transfer the Commuted Value of your pension benefits to:

  i)        another Registered Pension Plan;

 ii)        a locked-in Registered Retirement Savings Plan;

iii)        an Immediate or Deferred Life Annuity; or

iv)        a Life Income Fund, provided your spouse has submitted a written consent of transfer.

You have to be under the age of 55 to be eligible for the Portability Option. In the event of death prior to your retirement, either your Spouse or your Beneficiary will receive a Pre-Retirement Death Benefit from the Plan.

If you select a transfer of the Commuted Value of your pension benefits from the Plan, you, your spouse or your beneficiaries will not be eligible for any further benefits from the Plan.

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