. . . ready? e P - F T C B s n o i s n e P BCTF - PowerPoint PPT Presentation

s n o i s n . . . ready? e P - F T C B

s n o i s n e P BCTF Pensions - F Pension Information Outreach 2018 T C B

s n Agenda o i s n 1. How the Old Plan works. e 2. How the New Plan works. P 3. Possible further improvements - to the New Plan. F T C B BCTF Pensions 2

s n Building your pension is like a coin, o with two sides i s n e P - F T C B BCTF Pensions 3

s n Building your pension is like a coin, o with two sides i s n e P - F T Pension build up rate Reduction rate for C for every year of every year retiring service. earlier than 65. B BCTF Pensions 4

s n Building your pension is like a coin, o with two sides i s n Old Plan New Plan e P Pension builds Pension Pension builds Pension at 1.51% per reduced by the at 1.85% per reduced by - year of service. lessor of: year of service. 4.5% for every F 3% per year year under age • under 60 or 61. T 3% per year • that age + C Contributory Service* is less than 90. B *Contributory Service is measured as any month you have had any service in the TPP BCTF Pensions 5

s n Building your pension is like a coin, o with two sides i s n Your pension may be built up this way: e P Pension made of mostly Old Plan and a little of the New Plan; soon to retire + member. - Pension made of half the service in F the Old Plan and half the service in + the New Plan; mid career member. T Pension made of little Old Plan and a C mostly of the New Plan; beginning + member. B BCTF Pensions 6

s n Retirement income o i s Summary n Old Age Security e Canada Pension Plan Canada Pension Plan P - TPP Bridge amount Canada Pension Plan F T TPP Lifetime amount C B 55 60 65 70 75 80 85 90 Earliest retirement BCTF Pensions 7

s n Possible further pension o improvements i s n e P - F T C B BCTF Pensions 8

s n Teachers’ Pension Plan o i The New Plan changes s starting January 1, 2018, n represent modernization: e • increased lifetime P pension - • equity for members. F T If sufficient surplus, further C improvements are possible, but require the B following … BCTF Pensions 9

s n Surplus timeline o i • early signs of TPP surplus (June 2017) s n • Plan Partners (BCTF and provincial e government) decide on possible P improvements (November 2017) • size of surplus limits the improvements - (December 2017) F T • actuary indicates surplus to Plan Partners (January 2018) C • actuary confirms surplus with Financial B Institutions Commissions (August 2018). BCTF Pensions 10

s n If surplus confirmed with o pension authorities… i s n The Joint Trust e Agreement P between Plan Partners applies these further - improvements F provided the T member is C “active on January 1, 2019”. B BCTF Pensions 11

s n If surplus confirmed with o pension authorities… Example 1: i s n Jo Park taught high school physics for 28 years e and is considering a last day at work on June 30, P retiring July 1, 2018. Will Jo’s pension have any further improvements as a result of the pension - surplus? F T Answer: No. Jo’s pension = Old Plan + New Plan. C B BCTF Pensions 12

s n If surplus confirmed with o pension authorities… Example 2: i s n Leslie Jaen taught grades 5, 6, and 7 for 24 years e and is considering a last day at work on P December 31, retiring January 1, 2019. Will Leslie’s pension have any further improvements - as a result of the pension surplus? F T Answer: No. Leslie’s pension = Old Plan + New C Plan. B BCTF Pensions 13

s n If surplus confirmed with o pension authorities… Example 3: i s n Chadi Ulm taught French for 24 years and is e considering a last day at work on January 30, P retiring February 1, 2019. Will Chadi’s pension have any further improvements as a result of the - pension surplus? F T Answer: Yes. Chadi’s pension = Old Plan + New C Plan with further improvements . B BCTF Pensions 14

s n Since further improvements are pending and o may influence retirement decisions, Partners i s have made the decision that the BCTF inform n all Plan Members. e P - F T C B BCTF Pensions 15

s plus or TPP Old Plan New Plan New Plan starting 2018 n features prior 2018 starting 2018 if sufficient surplus and Possible further improvements active Jan. 1, 2019 o 1.85% of salary per year 1.90% of salary per year Accrual rate 1.51% of salary per year — summary table • same accrual rate is applied i • same accrual rate is applied (yearly pension • effectively due to a split regardless of TTOC, part-time, or full- regardless of TTOC, part-time, or full- build up rate) rate s time work. time work. Normal form Pension payment Pension payment calculated as a Pension payment calculated as a n (default calculated as a Single Life Single Life Guaranteed Zero years Single Life Guaranteed Ten years calculation of Guaranteed Zero years form • Guarantee options: pension • Guarantee options: • Guarantee options: - 15 years e payment) - 5 years - 5 years - 0 years - 10 years - 10 years - 5 years - 15 years - 15 years P 4.5% per year for every year under Early-retirement The lesser of: 4.5% per year for every year under age 61 at retirement Reduction • 3%/yr for every year age 61 at retirement Factor under 60 or • 3%/yr for every year your age plus Contributory - Service is less than 90. Bridge benefit TPP contributions pay for Any earned bridge still paid out from Any earned bridge still paid out from F this mini pension and the retirement to 65. TPP contributions retirement to 65. TPP contributions basic lifetime pension. originally paying for the Bridge is originally paying for the Bridge is Bridge is added to basic instead added to build a larger basic instead added to build a larger basic T lifetime pension from lifetime pension. lifetime pension. retirement to age 65. Limit removed Pensionable 35 years maximum Limit removed C • every day worked builds pension Service (PS) • every day worked builds pension • employment restriction removed. • employment restriction removed. Long service None 35 years of Contributory Service results 35 years of Contributory Service results B recognition in an unreduced pension in an unreduced pension equity for TTOC, part-time, equity for TTOC, part-time, • • maternity and parental leaves. maternity and parental leaves. Highest The average of your The average of your highest five The average of your highest five Average Salary highest five salaries salaries salaries BCTF Pensions 16 (HAS)

s plus or TPP TPP Old Plan Old Plan New Plan New Plan New Plan starting 2018 New Plan starting 2018 n features features prior 2018 prior 2018 starting 2018 starting 2018 if sufficient surplus and if sufficient surplus and active Jan. 1, 2019 active Jan. 1, 2019 o 1.90% of salary per year 1.90% of salary per year Accrual Accrual 1.51% of salary 1.51% of salary 1.85% of salary per year 1.85% of salary per year i • same accrual rate is • same accrual rate is rate rate per year per year • same accrual rate is • same accrual rate is s applied regardless of applied regardless of (yearly (yearly • effectively • effectively applied regardless of applied regardless of pension pension due to a split due to a split TTOC, part-time, or full- TTOC, part-time, or full- TTOC, part-time, or TTOC, part-time, or n time work. time work. build up build up accrual rate accrual rate full-time work. full-time work. rate) rate) (1.3%/2.0%). (1.3%/2.0%). e P Pension Pension Normal Normal Pension Pension Pension Pension payment payment form form payment payment payment payment calculated as calculated as (default (default calculated as calculated as calculated as calculated as - a Single Life a Single Life calculation calculation a Single Life a Single Life a Single Life a Single Life Guaranteed Guaranteed of pension of pension Guaranteed Guaranteed Guaranteed Guaranteed F Ten years Ten years payment) payment) Zero years Zero years Zero years Zero years for all service for all service for all service for all service for all service for all service T • guarantee • guarantee • guarantee • guarantee • guarantee • guarantee options: options: options: options: options: options: C - 0 years - 0 years - 0 years - 0 years - 0 years - 0 years - 5 years - 5 years - 5 years - 5 years - 5 years - 5 years - 10 years - 10 years - 10 years - 10 years - 10 years - 10 years B - 15 years. - 15 years. - 15 years. - 15 years. - 15 years. - 15 years. BCTF Pensions 17