Retirement Options
You can retire as early as age 55 with a reduction is applied to your pension. The reduction is six per cent for each year (prorated for part years) that your age at retirement is less than the normal retirement age of 65. If you retire between ages 62 to 64 the reduction can be waived with Trustee consent.
You can delay your retirement up to the end of the year in which you turn 71. If you delay retirement, your pension will be increased by five per cent for each year (prorated for part years) that your retirement date falls after age 65.
Normal retirement date
Your normal retirement date is the first of the month following your 65th birthday. That said, you can retire earlier or later. “Normal” retirement date is pension terminology referring to a plan’s default retirement date. You can retire with an unreduced pension on the first of any month between your 62nd and 65th birthday, provided you have the consent of the Trustees.
Early retirement
You can retire with a reduced pension as early as age 55, without Trustee consent. Your pension is reduced by six per cent for each year (prorated for part years) that your retirement date falls before age 65. This reduction reflects the fact that you are likely to receive more pension payments than someone who retires later.
Late retirement
You can delay your retirement start date beyond age 65. If you delay your retirement, your pension is increased by five per cent for each year (prorated for part years) that your retirement date falls after your 65th birthday. (Keep in mind, however, that while your pension is growing, you are missing out on monthly pension payments). You must start collecting your IBEW Local 353 pension no later than the end of the year in which you turn 71.
Death before Retirement
If you die before your pension begins but after two consecutive years of membership in the IBEW Local 353 pension plan, your spouse or beneficiary will receive the value of the pension benefits you’ve earned since 1987, as well as a refund of your pre-1987 contributions with interest.
Death after retirement
If you die after your pension starts, death benefits (if any) will depend on the form of pension you chose at retirement.
Life Only
The option of a lifetime only pension pays you a pension for your lifetime with no death benefit. If you don’t have a spouse (or you and your spouse signs a waiver), you can choose this option.
Life with 10 year guarantee (Normal form)
The lifetime pension with a 10-year guarantee pays you a pension for your life. If you die within the first 120 months of starting your pension, the balance is paid to your beneficiary or estate. You can choose this option if you don’t have a spouse (or you and your spouse signs a waiver).
The lifetime pension with a 10-year guarantee is the normal form or default pension amount and appears on your annual pension statement.
Life with 15 year guarantee
The lifetime pension with a 15-year guarantee pays you a pension for your life. If you die within the first 180 months of starting your pension, the balance is paid to your beneficiary or estate. You can choose this option if you don’t have a spouse (or you and your spouse signs a waiver).
60% spouse’s survivor pension
This pension is paid to you for life with a 60 per cent pension continuing to your spouse for her lifetime after your death.
Your monthly pension will be reduced to reflect the cost of providing a continuing pension to your spouse after your death. The reduction is based on your age and your spouse’s age.
Ontario pension law states that you much provide a continuing pension to your spouse at the time of your death. Your spouse can refuse the continuing pension provided you and your spouse sign a legal waiver before your pension begins. If the continuing pension is waived, you can choose from any of the other payment options.
60% spouse’s pension with “pop-up”
This option is similar to the 60% spouse’s pension with the additional benefit that if your spouse predeceases you, your pension will “pop-up” to the normal form of pension, which is a lifetime pension with a 10-year guarantee.
100% spouse’s pension
This pension is paid to you for life with a 100 per cent pension continuing to your spouse for her lifetime after your death.
Your monthly pension will be reduced to reflect the cost of providing a continuing pension to your spouse after your death. The reduction is based on your age, your spouse’s age.
Ontario pension law states that you much provide a continuing pension to your spouse at the time of your death. Your spouse can refuse the continuing pension provided you and your spouse sign a legal waiver before your pension begins. If the continuing pension is waived, you can choose from any of the other payment options.
100% spouse’s pension with “pop-up”
This option is similar to the 100% spouse’s pension with the additional benefit that if your spouse predeceases you, your pension will “pop-up” to the normal form of pension, which is a lifetime pension with a 10-year guarantee.
Notched Option
With the notched option, you receive a higher monthly pension from your retirement date until you reach age 65. At age 65, when you qualify for Old Age Security benefits, your Local 353 pension is reduced. If you die within 10 years of retirement, your pension reverts to what it would have been if you had chosen the life with 10-year guarantee and is paid to your beneficiary or estate for the balance of the 10 years.
For more information about the notched option, please see the Pension Plan booklet or contact TEIBAS.
This website describes the Pension plan for members of IBEW Local 353 in plain language. It is not a legal document. If there is a difference between the information contained here and the legal plan documents, the plan documents will apply.