Employment Changes

What happens if I’m laid off?

If you are laid off and subsequently return to work, unfortunately you will not accrue continuous or credited service for the period of time you were off. This may impact the date you are eligible to retire as well as your pension. Your Annual Entitlement Statement will detail how the period that you were laid off impacts your pension. There is one exception to this rule: if your period of layoff occurred before July 1, 1996, you will be credited for continuous service for this period of layoff only.

What happens if my earnings have been reduced?

At some point, events might happen that cause you to experience a reduced rate of earnings. This could be for reasons such as a job change because of a reduction in staff, reduced earnings due to a role change, or changes in your job evaluation.

In the event that this happens, you can opt to continue making contributions based on your higher rate of earnings, even though your rate of earnings has decreased. When we calculate your pension benefit, it will be based on your higher contributory earnings, not your lower rate of pay, thus increasing the value of your pension.

To qualify for this option, you must be within ten years of eligibility for an unreduced pension and have a minimum of five years of service at the higher salary. Please note that this election must be made within 90 days of your reduction in earnings.

Returning to work after leaving the Plan

Welcome back! If you have left and are subsequently rehired as a regular Plan member, you have the option to repurchase your previous pension service to increase the value of your pension. This option is available to you if you meet the following criteria:

• Your period of absence from the most recent date of leaving was less than 24 months, and
• Your prior period of credited service was at least 24 months

To repurchase your previous pension service, you have to repay the full amount of any required contributions and interest that were refunded to you on the date you left. This also includes any commuted value that was transferred out plus interest on these amounts to the date of repayment.

Leaving your job before retirement?

Sometimes life or career changes result in changing employers. What happens to your pension in those circumstances?

If you are contemplating leaving your employer, are under age 50, and have less than 29 years of continuous or credited service, you have two options available to you when you leave:

Option 1: Transfer
You can choose to transfer the commuted value (CV)* of your accrued pension. The CV is the current lump-sum dollar value of your future pension benefit and is vested and locked-in. You can either transfer this amount to your new employer’s registered pension plan (RPP) or to a locked-in retirement vehicle, which could be a locked-in retirement account (LIRA), a life income fund (LIF), a locked-in retirement income fund (LRIF) or a life annuity.

Option 2: Defer
You can choose to leave your pension with TTCPP and receive deferred monthly pension payments when you are eligible to retire. Leaving your pension with TTCPP gives you the benefit of knowing you have a secure monthly pension for life. Plus, you enjoy features such as conditional inflation protection and survivor benefits.

Additionally, if applicable, you may be eligible to receive a refund of your excess contributions.

If your total contributions plus interest exceeds 50% of the commuted value, the balance will be refunded to you as follows:

• If you choose Option 1 and transfer the commuted value* to a locked-in arrangement, the refund of your excess contributions may be transferred to a nonlocked RRSP or refunded to you directly by cheque or electronic funds transfer, less income tax.
• If you choose Option 2 and leave your pension with TTCPP as a deferred pension, you must take the refund of excess contributions (if applicable) as a direct payment to you, less income tax. You cannot transfer to a nonlocked RRSP.

Note: If you’re considering leaving your employer, you can contact TTCPP to have a termination estimate completed. This estimate does not obligate you to do anything and is strictly confidential.

If you have already left your employer, it’s important to contact us as soon as possible so there will be no delay in processing your benefit. TTCPP will give you an estimate of the value of your pension entitlement and all the necessary forms required to proceed with your termination benefit.

*The Income Tax Act outlines a maximum transfer value, which allows the member to transfer up to a capped maximum of CV to an RPP and the remainder must be taken in cash, less income tax.

Your deferred pension at retirement
If you choose to leave your pension with TTCPP, it becomes payable to you when you turn 60 (unless you apply to receive it earlier). This deferred pension includes the benefits of a regular pension such as survivor benefits (but excludes health and life insurance). Once you start receiving pension payments, your pension also benefits from conditional inflation protection, meaning you will receive periodic cost-of-living increases (conditional on affordability and the long-term health of the Plan). These cost-of-living increases act like a pay increase.

The earliest you can start your pension is at age 50. If you start your pension after age 50 but before you turn 60, your payments will be reduced on an actuarial equivalent basis. This is because it will be paid for a longer length of time than if you had waited to age 60 to start collecting. The reduction is permanent for the length of your life.

When you decide to start collecting your pension, you will need to contact us to receive and complete the appropriate documentation. Also, if you move, you must notify TTCPP immediately so we can continue to send you your periodic statements.

It’s also important to let us know if your contact or beneficiary information changes. See here for how to do this.

Small pension rule
If your annual pension at age 60 is calculated to be less than 4% of the year’s maximum pensionable earnings (YMPE) or the commuted value is less than 20% of the YMPE in the year you terminate your membership, the small pension rule would apply to you.

This generally occurs for members with short credited service in the Plan. If applicable, this rule unlocks the commuted value and allows the pension to be transferred out in cash, less withholding tax, or to a registered retirement savings plan (RRSP), up to the maximum transfer value.

Returning to work after ending your membership

If you previously left your employer and withdrew your pension entitlement but have been subsequently rehired as a regular Plan member, you may have the option to repurchase your previous pension service. This option is available to you if you meet the following criteria:

• Your period of absence from the most recent date of leaving was less than 24 months, and
• Your prior period of credited service was at least 24 months

In order for you to repurchase your previous pension service, you would repay the full amount of any required contributions and interest that were refunded to you on the date of you left. This also includes any commuted value that was transferred out plus interest on these amounts to the date of repayment.

If you are interested in repurchasing your previous pension service, contact TTCPP and we will forward the necessary documents to you.

Note: You must elect to do this within 90 days of becoming a regular member of the Plan.