You become a member of the FSPP automatically when you begin your employment as a City of Calgary firefighter represented by the International Association of Firefighters, Local 255. Once you are enrolled in the FSPP, you must remain a member as long as you are employed as a firefighter by the City of Calgary.

You and your employer, the City of Calgary, jointly fund the FSPP and share any costs associated with experience losses and unfunded liabilities. The City contributes 55% of the required funding and members contribute 45%. Contributions to the FSPP are in addition to the contributions you and the City make to the LAPP.

What is it?

Pensionable service is the period of employment during which you contribute to the FSPP. Your pension benefits will be based on your pensionable service and your salary. The maximum pensionable service you can accumulate is 35 years.

Increasing Pensionable Service

The FSPP allows you to increase your pensionable service through the following methods.

Prior Service

You must purchase prior service under the FSPP within 6 months of your date of hire as a firefighter if:

• you qualify to purchase prior service under LAPP;
• you transfer prior service into LAPP from another pension plan; or
• you have pensionable service under LAPP as a result of your employment with the City of Calgary prior to your employment as a firefighter.

Leaves of Absence

If you take a leave of absence without salary, you may be able to purchase the period as pensionable service. If you purchase a leave of absence under LAPP, you must also purchase the leave under FSPP.

You may purchase leaves of absence or prior service under FSPP by making either a lump sum payment or by making bi-weekly installment payments.

Please contact the Administrator for more information on what service is eligible for purchase and details on bi-weekly payment options.

Your pension is immediately vested and locked-in. Commuted Values that are less than 20% of the Yearly Maximum Pensionable Earnings in the calendar year in which they are determined are except from the locking-in rules. You can receive the commuted value of your FSPP benefit only if you are younger than 50 on your termination date.

When Can You Retire?

The benefits described in this section are your total pension benefits from FSPP and LAPP, assuming you qualify for pension benefits.

You can retire with an unreduced pension:

• At any age if you have at least 30 years of pensionable service (maximum 35 years); or
• At age 55.

You must retire no later than the first day of the month immediately following your 60th birthday.

You can retire with a reduced pension:

• If you have at least 25 years of pensionable service. Your pension will be reduced by the lesser of:
1. 4% per year (0.3333% per month) that you retire before reaching 30 years of pensionable service, and
2. an actuarial reduction, so that the reduced pension has the same actuarial value as an unreduced pension payable at age 55.
• If you have less than 25 years of pensionable service and are between the ages of 50 and 55. Your pension will be actuarially reduced, so that the reduced pension has the same actuarial value as an unreduced pension payable at age 55.

How is My Pension Calculated?

Your total pension from LAPP and FSPP, payable from your retirement date to age 65, is based on the following formula:

Your FSPP pension includes a bridge benefit to age 65. When you turn 65, payment of the bridge benefit stops, reflecting the fact that you are eligible to receive benefits from CPP. The reduction at age 65 due to the end of the bridge benefit is equal to:

As the FSPP supplements your LAPP benefits, in order to see the interaction of the FSPP benefits with the LAPP pension benefits, you should refer to the My Supplementary Pension Plan for pension estimates from the FSPP. Please refer to the Local Authorities Pension Plan (LAPP) website for pension estimates from the LAPP.

To ensure as much accuracy as possible in the estimates you calculate, please ensure that the same input information is used in both the FSPP estimate and the LAPP estimate.

Note: if you elect the level income option under LAPP (co-ordination), there is no effect on your FSPP benefit. Your FSPP benefit will be calculated using the LAPP benefit amount before co-ordination.

Cost of Living Adjustments (COLA)

After you begin receiving your pension, the amount you receive will be increased each year to help offset the effect of inflation. The increase is equal to the COLA adjustment under LAPP. This currently is 60% of the rate of change in Alberta’s consumer price index (CPI).

Form of Pension

If You Do Not Have a Pension Partner When You Retire

You will receive a monthly pension based on the plan formula. The FSPP monthly pension will be offset at age 55 by your LAPP pension (calculated in the normal form for members without pension partners). If you retired after age 50 but before age 55 and elected to transfer the value of your LAPP pension, the FSPP monthly pension at age 55 will be offset by a deemed amount of your LAPP pension. Your pension will be further reduced at age 65 by the amount of the bridge benefit. The pension is guaranteed for five years. If you die within 60 months of your retirement date, your beneficiary has the choice of receiving the balance of the guaranteed monthly payments or a lump sum of the commuted value of the remaining guaranteed payments. In the event of your death after 60 months from your retirement date, no payment will be made to your beneficiary.

If You Have a Pension Partner When You Retire

The normal form of pension under FSPP for a member with a pension partner is a joint and survivor 65% pension, guaranteed for 60 months. Your FSPP monthly benefit will be based on the plan formula, offset at age 55 by the LAPP pension payable as a Joint Life Reducing by 1/3 on the death of either yourself or your pension partner. If you retired after age 50 but before age 55 and elected to transfer the value of your LAPP pension, the FSPP monthly pension at age 55 will be offset by a deemed amount of your LAPP pension. Your pension will be further reduced at age 65 by the amount of the bridge benefit.

In the event of your death, your surviving pension partner continues to receive a percentage of your pension according to the following:

• If you die within 60 months from your retirement date, your pension partner will receive 100% of your total pension (the LAPP portion or deemed LAPP portion and the FSPP portion) for the remainder of the guarantee period, then 65% of your total pension, until he or she dies, offset by LAPP survivor benefits or deemed LAPP survivor benefits and further offset by 65% of the bridge benefit at your age 65.
• If you die after 60 months from your retirement date, your pension partner will receive 65% of your total pension (the LAPP portion or deemed LAPP portion and the FSPP portion), until he or she dies, offset by LAPP survivor benefits or deemed LAPP survivor benefits and further offset by 65% of the bridge benefit at your age 65.

In the event of the death of both you and your pension partner after 60 months from your retirement date, no further benefit will be paid from the FSPP.

If your pension partner is more than 10 years younger than you, the survivor pension amount is reduced by 1% for each year by which your age exceeds your pension partner’s age by 10 years. For example, if your pension partner is 12 years younger than you, the survivor pension is reduced by 2% (12 - 10).

At age 55, you are entitled to LAPP retirement benefits. Under LAPP, if you have a pension partner, there are two options to choose from:

• Joint Life Reducing by 1/3, and
• Joint Life Not Reduced.

The benefits described above assume you elect a Joint Life Reducing by 1/3 option under LAPP. If you elect the Joint Life Not Reduced option under LAPP, your FSPP pension will also be in this Joint Life Not Reduced form. Under this optional form, your FSPP pension is the actuarial equivalent your FSPP normal form pension (as described above). In the event of your death, your pension partner will receive 100% of both the LAPP and FSPP pensions that you would have received, provided your pension partner is still living. Your FSPP pension is reduced at age 55 by any LAPP benefits payable and further reduced at age 65 by your bridge benefit.

If you retired after age 50 but before age 55 and elected to transfer the value of your LAPP pension, at age 55 your FSPP pension will be offset based on a deemed LAPP pension. The amount of the offset will be based on your form of pension payable after age 55 from FSPP as described in the above paragraph.

If your spousal relationship ends, the courts treat your pension as one of the assets to be divided. In order to split the pension under FSPP the Administrator must receive a copy of:

• a Matrimonial Property Order;
• an agreement under the Matrimonial Property Act; or
• a similar order of a court outside of Alberta, that is enforceable in Alberta.

You and your spouse or former spouse should consult your lawyers for information about the division of matrimonial property or for any legal advice.

Vesting and Locking-In

It is important to understand the concepts of vesting and locking-in, particularly if you leave your employment as a City firefighter before you retire.

Vested means that you have the legal right to the pension you have accrued under the FSPP. Locked-in means that your benefit from the FSPP cannot be taken as cash, it must be used to provide retirement income. Your pension is immediately vested and locked-in. Commuted Values that are less than 20% of the Yearly Maximum Pensionable Earnings in the calendar year in which they are determined are except from the locking-in rules.

Note that if your termination date is more than 10 years from the normal retirement date you must elect the same termination benefit option under FSPP that you elect under LAPP.

In addition, if you elect a deferred pension, this election is irrevocable under FSPP and your pension benefit can only be paid in a form of a monthly pension.

If you leave your employment as a firefighter, you have the following options, subject to any Income Tax Act restrictions.

• Have the commuted value of the pension you have earned to date transferred to a Locked-in Retirement Account (LIRA). The commuted value must be used to provide an income stream at retirement unless Income Tax Act restrictions force you to receive the amount in cash.
• Leave your earned pension in the FSPP and choose a deferred pension beginning on or after 50 but no later than age 60. Your earned pension will be reduced if you have not met the age and service criteria needed for an unreduced pension (see the earlier section “When Can You Retire?”). Your earned pension will be increased each year after your termination date by the COLA.
• Transfer your pension credits to another pension plan, provided that plan agrees to accept the transfer.

You can receive the commuted value of your FSPP benefit only if you are younger than age 50 on your termination date and you are also receiving the commuted value of your LAPP benefit.

If your current service contributions with interest total more than 50% of the commuted value of your benefit, the amount of your contributions with interest over the 50% commuted value will be refunded to you. In this way the FSPP ensures that it will fund at least one half of the cost of your pension benefit.

Your prior service purchased on an actuarial reserve basis and some periods of leave of absence will not be included in the commuted value calculation nor the 50% excess contribution test described above. Rather, your contributions with interest in respect of such service will be refunded in a lump sum as either cash or a transfer to an RRSP.

If you are receiving benefits from an approved long term disability income plan or are receiving a 100% disability Workers Compensation Benefit (WCB) pension, you are not eligible for a disability pension from the FSPP. You continue to participate in and contribute to the FSPP and LAPP, and your pensionable service continues to grow while you receive payments under an approved long term disability income plan or 100% disability WCB pension.

If you are partially or totally disabled and not receiving long term disability income benefits or temporary WCB benefits, you may be eligible to receive a disability pension.

Naming a Beneficiary

If you have a pension partner, your pension partner is automatically your beneficiary. If you have no pension partner, your dependent child(ren) are automatically your beneficiary(ies).

If you do not have a pension partner or dependent children, it is important that you name a beneficiary to receive benefits from the FSPP should you die before retirement. If you do not name a beneficiary, or if your beneficiary dies before you, benefits are paid in a lump sum to your estate.

Your Pre-Retirement Death Benefit – With Less than 10 years of Pensionable Service

Without a surviving pension partner or dependent children

If you die prior to accruing 10 years of pensionable service and you are not survived by a pension partner or dependent children, your beneficiary or estate will receive a lump sum payment equal to the commuted value of your accrued FSPP benefit, calculated as if you had terminated employment immediately prior to your death.

With a surviving pension partner or dependent children

If you die prior to accruing 10 years of pensionable service and you are survived by a pension partner or dependent children, your pension partner or beneficiary, as applicable, will receive either:

1. the commuted value of your accrued FSPP benefit. The commuted value is calculated as if you had terminated employment immediately prior to your death; or
2. if you are survived by a pension partner, a monthly pension from the FSPP whose value is equal to the benefit described under option (1) immediately above. This monthly pension is payable on the same date as the pension payable to your pension partner under LAPP.

Your Pre-Retirement Death Benefit – With Greater than 10 years of Pensionable Service

Without a surviving pension partner or dependent children

If you die after accruing 10 years of pensionable service and you are not survived by a pension partner or dependent children, your pensioner partner or beneficiary, as applicable, will receive a lump sum payment equal to the commuted value of your accrued FSPP benefit, calculated as if you had terminated employment immediately prior to your death.

With a surviving pension partner or dependent children

If you die after accruing 10 years of pensionable service and you are survived by a pension partner or dependent children, your pension partner or beneficiary, as applicable, will receive either:

1. the commuted value of your accrued FSPP benefit. The commuted values are calculated as if you had terminated employment immediately prior to your death; or
2. if you are survived by a pension partner, a monthly pension from the FSPP whose value is equal to the benefit described under option (1) immediately above. This monthly pension is payable on the same date as the pension payable to your pension partner under LAPP; or
3. if you are survived by a pension partner, a monthly pension from the FSPP equal to 65% of the normal benefit that would have been payable to you had you survived until age 60 (including service projected to age 60), but based on your highest average salary at your date of death. Survivor benefits payable under LAPP are offset in calculating the amount payable under the FSPP and 65% of your bridge benefit is offset at your age 65. If you are also survived by dependent children, an additional amount is payable from the FSPP until your dependent children reach the age of 18. Please contact the Administrator for details.

Locking In

A commuted value payment to your pension partner is payable as a lump sum transfer to a Locked-In Retirement Account (LIRA). The benefit may be paid in cash if the commuted value of the benefit falls below 20% of the YMPE.

50% Excess Contributions

If your current service contributions with interest total more than 50% of the commuted value of your benefit, the amount of your contributions with interest over the 50% commuted value will be refunded to you. In this way the FSPP ensures that it will fund at least one half of the cost of your pension benefit.

Commuted Value Service Exclusions

Your prior service purchased on an actuarial reserve basis and some periods of leave of absence will not be included in the commuted value calculation nor the 50% excess contribution test described above. Rather, your contributions with interest in respect of such service will be refunded in a lump sum as either cash or a transfer to an RRSP.

Pension Partner Waiver of Pre-Retirement Death Benefit

Your pension partner may waive his or her rights to receive a pre-retirement death benefit from the FSPP by filing a written waiver with the Administrator. In such case, benefits under the FSPP shall be determined as if your pension partner had predeceased you.

A five-member Board of Trustees oversees the FSPP, ensuring the FSPP is managed on a financially sound basis. Local 255 appoints two trustees and the City of Calgary appoints two trustees. As well, the Board hires one independent trustee, as chairman.

As part of its fiduciary responsibility, the Board:

• sets policy guidelines for investment management and administration,
• on the advice of the plan actuary, sets contribution rates to ensure the FSPP is properly funded,
• ensures an FSPP valuation occurs at least every three years, and
• ensures the FSPP meets all legislative requirements.

The Board may be contacted by writing to:
The Chairman, Calgary Firefighters Supplementary Pension Plan
c/o FSPP Board Secretary
2312 Deerside Drive SE.
Calgary, Alberta  T2J-5X1

After you have decided to retire, be sure to contact your payroll department well in advance of your planned retirement. Your payroll department forwards the required documentation to FSPP Administration Centre to initiate your application for retirement.