Dear Brothers and Sisters:
The August 16, 2012 Arbitration decision provides that effective April 1, 2013, the Company shall make payments to the IAM & AW Multi-Employer Pension Fund, at a contribution of rate of 4% (four percent) of the employee’s total earnings, including all earnings for wages, vacation, paid holidays, approved Union leave, VRSC and COLA. There is no obligatory contribution by employees in order to obtain the 4% (four percent) contribution from the Company. The IAM & AW Multi-Employer Pension Fund provides for a defined Benefit for Plan Members. In order to determine each Bargaining Unit’s Benefit Accrual Rate, a review of employee data by our Pension Actuary, is currently underway. We expect to be in a position to provide further details concerning the Benefit Accrual Rates in early 2013.
The existing Group RRSP Contribution Plan will continue until the IAM & AW Multi-Employer Pension Fund is in place. Once the IAM & AW Multi-Employer Pension Fund is in place, the Company’s rate of contribution will automatically be set at 4% (four percent) and employees will cease contributing the voluntary matching contribution of 2% (two percent). Additionally, once the IAM & AW is satisfied that all contributions owing to the Group RRSP Contribution Plan have been remitted by G4S, the Plan will be de-grouped. This means the accounts will become individual RRSP accounts. Members will then have the ability to provide instruction to RBC on an individual basis concerning the status of their Accounts. We will advise the Membership of any developments in this transition as soon as the information becomes available.
In Solidarity,
Tania Canniff, General Chairperson Keith Aiken, General ChairpersonTransportation District 140, IAM & AW Transportation District 140, IAM & AWhttps://iamaw16.ca/wp-content/uploads/2013/02/November-26-2012-IAMAW-MULTI-EMPLOYER-PENSION-FUND-November-26-2012.pdf