Questions About Contributions
1. When do contributions by my employer vest?
Contributions made by the employer vest on the first dollar of such contributions.
2. Do all contributions (employer/employee(member)/voluntary) go into the same account?
Yes, you have a personal account inside the Plan where all funds received on your behalf are held. It’s like your own personal bank account within a large bank. This account has at least two, and possibly even three separate compartments, depending on whether or not you make additional voluntary contributions. One compartment holds employer contributions received on your behalf, and the other one holds the contributions that are deducted from your pay cheque in accordance with the mandatory requirements of your collective agreement. If your collective agreement allows for voluntary contributions, and you choose to make these additional contributions, they will be held in a third compartment within your account. Voluntary contributions are only deducted from your pay cheque upon your instruction, and then, only at the amount set by you.
3. Do I share an account with another member of the Plan?
No, as indicated in the answer above, you have a personal account inside the Plan, where all funds received on your behalf are held.
4.May I make voluntary contributions to the Plan?
Yes, the Plan accepts voluntary contributions provided:
- they are permitted under your collective agreement
- they are deducted from payroll at source and shown separately on your employer’s remittance sheet
- you have signed an authorization form, which is on file at the CLAC Benefit Administration Office in Grimsby, Ontario
Voluntary contributions are locked-in until you stop working under a CLAC collective agreement and have served the waiting period. However, after this period they are not locked-in.
5. What’s the total amount that I can contribute to retirement savings in a year?
If contributions are made on your behalf to the CLAC Plan, the total tax-deductible amount you are allowed to contribute in a year for all of your retirement savings is 18% of earned income up to a maximum of $19,000 (2006).
6. Can I receive my pension funds in cash?
If you meet certain criteria, you may be able to take your pension funds in cash. These criteria differ according to each province’s pension legislation. Please contact our Benefit Administration Office for additional information.
7. Can I transfer other retirement funds into the CLAC Plan?
Yes, provided all the proper documentation has been completed and the funds are to be transferred from one of the following plans:
- Registered Pension Plan (RPP)
- Locked-In Retirement Account (LIRA) Locked-In RRSP
- Registered Retirement Savings Plan (RRSP)