“Just because your work stops, doesn’t mean the lifestyle you’ve built has to.”
A PENSION PLAN FOR LIFE
IUOE Local 115 believes no senior who has spent their lives working should retire in poverty. That’s why our pension plan is designed to provide you with a retirement income in addition to your Canada Pension and Old Age Security benefits.
Having a strong pension plan has never been more important. As of 2016, nearly half of all Canadians have no employer pension plan according to a study by the Broadbent Institute. With the high price of buying annuities in today’s economic climate, the average person would have to put away over $450,000 in RRSPs to create a livable monthly pension.
What about the retired person who has no pension plan and no retirement savings? As of 2019, the monthly Old Age Security pension is $7,000 per year, and the average income for people drawing from the Canada Pension Plan is $8,000 per year. Single seniors living on this amount will likely qualify for the federal Guaranteed Income Supplement, bringing their total income to a maximum of $26,000 per year, or just over $2,000 a month.
The Operating Engineers Pension Plan (OEPP) was established on May 1st, 1970. Since then, there have been many improvements to benefits provided. The OEPP is a target benefit plan with more than 300 contributing employers. Our plan is professionally managed by top investment consultants and overseen by a dedicated Board of Trustees.
Financials are provided to members yearly to ensure transparency and confidence in our investments. Like all pension plans, there is always a possibility for the OEPP to increase or decrease, but funding projections from our actuary indicate pensions will remain steady for the foreseeable future.
HOW THE PLAN WORKS
Your contribution rates are set in your collective agreement and paid by your employer. While you are not required to contribute to your plan, you are able to top up your hours yearly to a maximum of 3000.
You are able to retire the month following your 65th birthday. However, you may be eligible to retire as early as age 55. Once you decide to retire, you will be provided with monthly payments. The amount you receive will depend on contributions you have earned during your working career and any self payments. All individual and employer contributions are tracked, and IUOE Local 115 provides a yearly snapshot of your personal pension earnings.