Calgary Firefighters Supplementary Pension Plan

Glossary

Look up definitions of terms used throughout the site. Use the alphabet categories to find a particular term, or browse through the list.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Accrued Benefit

The amount of retirement benefit payable at a given date.

Administrator

The Board of Trustees has appointed Morneau Shepell to provide administration services for the FSPP.

Annuity

An annuity is a series of specified monthly payments to a person (the annuitant) purchased from a Canadian life insurance company. These payments are provided from a set sum of money for the lifetime of the annuitant under a contract with the life insurance company. The monthly annuity amount differs based on the size of the original sum of money and the form of annuity payment chosen.

B

Beneficiary

Your beneficiary is the person you designate in writing to receive benefits payable from your pension plan if you die. If you have an eligible spouse, the law requires that your beneficiary be your spouse unless your spouse waives this right (where permitted).

Bridge Benefit

The supplementary pension benefit paid from the date of your retirement to the date you turn age 65.

C

Cost of Living Adjustments (COLA)

Your pension will be increased annually by the Cost of Living (COLA). The increase is equal to the same percentage COLA adjustment under LAPP. This currently is 60% of the rate of change in the Alberta’s consumer price index (CPI).

Commuted Value

The current lump sum amount needed to fund your stream of monthly pension benefits in the future. The commuted value is calculated using prescribed interest rates and probable life-span factors. Commuted value is also referred to as the present value of your earned pension benefits.

D

Deemed Service

Deemed service only applies on death. If a member dies after having accrued 10 years of pensionable service, one of the options to the surviving pension partner is a pension that is based on deemed service projected to age 60.

Defined Benefit Pension Plan

A defined benefit plan is a type of plan that provides a pension at retirement based on a predetermined formula. Both the FSPP and the LAPP are defined benefit pension plans.

Dependent Child(ren)

An unmarried child or children who has not yet reached age 18 and who was dependent on you for support before your death.

E

Early Retirement

Refers to the earliest date at which you may receive a benefit from the FSPP. Depending on your age and service at the time you leave, a reduction to your pension for early retirement may apply.

F

Form of Pension

Refers to the type of benefit provided to your spouse or beneficiary upon your death. Typically, the forms of pension include: life only, life guaranteed five years, and joint and survivor.

H

Highest Average Salary

Your highest average salary is the average annual salary for the 60 consecutive months of service during which your salary was highest.

J

Joint and Survivor Pension

A form of pension in which you receive payments for your lifetime and your surviving spouse or joint annuitant receives a percentage of your payments for the reminder of his or her lifetime.

L

Life Only

A form of pension in which you receive payments for your lifetime only, with no death benefit payable to your beneficiary, regardless of when you die.

Life Guaranteed Pension

A form of pension in which the number of payments is guaranteed for a specified term e.g. 60 months. If you should die before receiving the guaranteed number of payments, your beneficiary will have a choice either to receive the lump-sum value of the remaining payment or continue to receive a monthly pension until the end of the guarantee period.

Life Income Fund (LIF)

A Life Income Fund (LIF) is similar to a Registered Retirement Income Fund (RRIF). Locked-in pension funds can be transferred to a LIF at retirement or termination of employment. Payments must start within two years of establishing a LIF. Legislation defines the minimum and maximum annual withdrawal limits.

Locked-in

The term locked in, when used to describe pension benefits means that you can never withdraw the lump-sum value in cash. Instead it must be used to provide you with a pension when you retire. Provincial legislation and the terms of the DB Plan determine when your pension benefits become locked in.

Locked-in Retirement Account (LIRA)

A Locked-in Retirement Account (LIRA) is also known as a locked-in RRSP. Locked-in pension funds can be transferred to a LIRA at retirement or upon termination of employment. A LIRA must be converted to a life annuity or a LIF by the end of the calendar year in which you reach age 71.

Locked-in Registered Retirement Savings Plan (locked-in RRSP)

A type of retirement account, similar to a LIRA, that is set up with the locked-in funds from a registered pension plan.

Locked-In Retirement Income Fund (LRIF)

A Locked-in Retirement Income Fund (LRIF), available in some provinces, is similar to a Registered Retirement Income Fund (RRIF). Locked-in pension funds can be transferred to a LRIF at retirement or termination of employment. Payments must start within two years of the establishment of the LRIF.

Legislation defines the minimum and maximum annual withdrawal limits.

M

Matrimonial Property Order

If your marriage ends, the courts treat your pension as one of the assets to be considered when property is divided. A matrimonial property order is a legal, binding Court Order that outlines how the division of your pension benefit is to be determined. Your matrimonial property order must comply with all applicable pension legislation.

N

Normal Retirement

Normal Retirement or Pensionable Age is the first of the month coincident of next following your 60^th birthday. You cannot accrue service past Pensionable Age.

P

Pension Adjustment (PA)

A figure that represents, for tax purposes, the deemed value you earned in a retirement plan for a particular year. PAs are issued to all members of defined benefit plans, money purchase plans, and deferred profit sharing plans, regardless of whether they make contributions. A PA reduces your RRSP contribution room. PA's are typically not issued for this plan.

Pension Adjustment Reversal (PAR)

A PAR restores a portion of RRSP contribution room to a person in respect of post-1989 pension adjustments (PAs). It will apply to a Pension Plan member:

Who is a member of a registered pension plan (RPP) and terminates employment other than by retirement; and
Who elects to receive a lump-sum settlement.

Generally, the amount of the PAR will be equal to the excess, if any, of the sum of the PAs and past service pension adjustment (PSPAs) minus the lump sum settlement for post-1989 service. No PAR's are issued for this plan.

Past Service Pension Adjustment (PSPA)

A figure that represents, for tax purposes, the increase in the deemed value you earned in a retirement plan when that plan is subject to a retroactive increase in its benefit formula or your credited service in the plan is increased retroactively, such as through a past service purchase. A PSPA reduces your RRSP contribution room. No PSPA's are issued for this plan.

Pension Partner

A “pension partner” is a person to who you are married and have not been living separate and apart for 3 or more consecutive years, or if there is no such person, a person who has lived with you in a conjugal relationship for a continuous period of at least 3 years, or of some permanence, if there is a child of the relationship by birth or adoption.

For the purposes of this definition, persons are living separate and apart if they are living apart and either of them has the intention to live separate and apart from each other, or they had been living separate and apart for any period, and that period was interrupted or terminated by reason only that either of them became incapable of continuing to live separate and apart or of forming or having the intention to continue to live separate and apart of that person’s own volition, and the separation would probably have continued if that person had not become so incapable.

For members who retire before age 55 their Pension Partner is determined to be the person who is their Pension Partner on their 55th birthday. If a person retires after age 55 his or her Pension Partner is the person who was his or her Pension Partner on their retirement date.

Pensionable Service

Your pensionable service includes the years of service during which you contributed to the FSPP or for which you have received current service credits during a period of disability. The maximum pensionable service you may accrue is 35 years (includes prior service).

Prior Service

Prior service is service prior to your enrolment in the FSPP on which contributions have been made to LAPP. Prior service excludes service prior to January 1, 1974 if you were a member of another prior pension plan maintained by the City of Calgary.

R

Registered Plan

Refers to any plan that is formally registered in compliance with the pension standards legislation applicable to that jurisdiction and with the Income Tax Act. Registered plans receive favourable tax treatment.

Registered Retirement Savings Account (RRSP)

A retirement savings arrangement, provided through insurance companies or financial institutions, which allows you to tax-shelter contributions and investment earnings until they are withdrawn, usually during retirement. You can also use your RRSP assets to help with the purchase of a first home or to pay for your post-secondary education, but no later than the end of the year when you reach age 71.

Registered Retirement Income Fund (RRIF)

A retirement income arrangement, provided through insurance companies or financial institutions, in which funds are transferred from your RRSP at maturity and which pays you an annual amount, subject to certain minimum amounts, based on a percentage of the assets you have in the fund.

S

Salary

Your salary is your pensionable earnings paid to you according to your collective agreement, not including overtime or dry cleaning allowance. The Income Tax Act places a limit on the pension amount that can be paid from a registered pension plan. Your salary may be limited to reflect these tax limits.

V

Vested

You are vested immediately upon joining the FSPP. Vesting means you are entitled to a pension benefit from the FSPP. If you leave the FSPP, you are entitled to the value of the benefit you have accrued.

Y

Year's Maximum Pensionable Earnings (YMPE)

The YMPE is the year's maximum pensionable earnings for the Canada Pension Plan set by the Canada Revenue Agency (CRA). For calculation of the FSPP normal pension reduction at age 65, the final average YMPE is determined using the same 60 months of service used in calculating the highest average salary.

Supplementary Pension Plan Information

Quick Links

Resources

Glossary

Look up definitions of terms used throughout the site. Use the alphabet categories to find a particular term, or browse through the list.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Accrued Benefit

The amount of retirement benefit payable at a given date.

Administrator

The Board of Trustees has appointed Morneau Shepell to provide administration services for the FSPP.

Annuity

An annuity is a series of specified monthly payments to a person (the annuitant) purchased from a Canadian life insurance company. These payments are provided from a set sum of money for the lifetime of the annuitant under a contract with the life insurance company. The monthly annuity amount differs based on the size of the original sum of money and the form of annuity payment chosen.

B

Beneficiary

Your beneficiary is the person you designate in writing to receive benefits payable from your pension plan if you die. If you have an eligible spouse, the law requires that your beneficiary be your spouse unless your spouse waives this right (where permitted).

Bridge Benefit

The supplementary pension benefit paid from the date of your retirement to the date you turn age 65.

C

Cost of Living Adjustments (COLA)

Your pension will be increased annually by the Cost of Living (COLA). The increase is equal to the same percentage COLA adjustment under LAPP. This currently is 60% of the rate of change in the Alberta’s consumer price index (CPI).

Commuted Value

The current lump sum amount needed to fund your stream of monthly pension benefits in the future. The commuted value is calculated using prescribed interest rates and probable life-span factors. Commuted value is also referred to as the present value of your earned pension benefits.

D

Deemed Service

Deemed service only applies on death. If a member dies after having accrued 10 years of pensionable service, one of the options to the surviving pension partner is a pension that is based on deemed service projected to age 60.

Defined Benefit Pension Plan

A defined benefit plan is a type of plan that provides a pension at retirement based on a predetermined formula. Both the FSPP and the LAPP are defined benefit pension plans.

Dependent Child(ren)

An unmarried child or children who has not yet reached age 18 and who was dependent on you for support before your death.

E

Early Retirement

Refers to the earliest date at which you may receive a benefit from the FSPP. Depending on your age and service at the time you leave, a reduction to your pension for early retirement may apply.

F

Form of Pension

Refers to the type of benefit provided to your spouse or beneficiary upon your death. Typically, the forms of pension include: life only, life guaranteed five years, and joint and survivor.

H

Highest Average Salary

Your highest average salary is the average annual salary for the 60 consecutive months of service during which your salary was highest.

J

Joint and Survivor Pension

A form of pension in which you receive payments for your lifetime and your surviving spouse or joint annuitant receives a percentage of your payments for the reminder of his or her lifetime.

L

Life Only

A form of pension in which you receive payments for your lifetime only, with no death benefit payable to your beneficiary, regardless of when you die.

Life Guaranteed Pension

A form of pension in which the number of payments is guaranteed for a specified term e.g. 60 months. If you should die before receiving the guaranteed number of payments, your beneficiary will have a choice either to receive the lump-sum value of the remaining payment or continue to receive a monthly pension until the end of the guarantee period.

Life Income Fund (LIF)

A Life Income Fund (LIF) is similar to a Registered Retirement Income Fund (RRIF). Locked-in pension funds can be transferred to a LIF at retirement or termination of employment. Payments must start within two years of establishing a LIF. Legislation defines the minimum and maximum annual withdrawal limits.

Locked-in

The term locked in, when used to describe pension benefits means that you can never withdraw the lump-sum value in cash. Instead it must be used to provide you with a pension when you retire. Provincial legislation and the terms of the DB Plan determine when your pension benefits become locked in.

Locked-in Retirement Account (LIRA)

A Locked-in Retirement Account (LIRA) is also known as a locked-in RRSP. Locked-in pension funds can be transferred to a LIRA at retirement or upon termination of employment. A LIRA must be converted to a life annuity or a LIF by the end of the calendar year in which you reach age 71.

Locked-in Registered Retirement Savings Plan (locked-in RRSP)

A type of retirement account, similar to a LIRA, that is set up with the locked-in funds from a registered pension plan.

Locked-In Retirement Income Fund (LRIF)

A Locked-in Retirement Income Fund (LRIF), available in some provinces, is similar to a Registered Retirement Income Fund (RRIF). Locked-in pension funds can be transferred to a LRIF at retirement or termination of employment. Payments must start within two years of the establishment of the LRIF.

Legislation defines the minimum and maximum annual withdrawal limits.

M

Matrimonial Property Order

If your marriage ends, the courts treat your pension as one of the assets to be considered when property is divided. A matrimonial property order is a legal, binding Court Order that outlines how the division of your pension benefit is to be determined. Your matrimonial property order must comply with all applicable pension legislation.

N

Normal Retirement

Normal Retirement or Pensionable Age is the first of the month coincident of next following your 60^th birthday. You cannot accrue service past Pensionable Age.

P

Pension Adjustment (PA)

A figure that represents, for tax purposes, the deemed value you earned in a retirement plan for a particular year. PAs are issued to all members of defined benefit plans, money purchase plans, and deferred profit sharing plans, regardless of whether they make contributions. A PA reduces your RRSP contribution room. PA's are typically not issued for this plan.

Pension Adjustment Reversal (PAR)

A PAR restores a portion of RRSP contribution room to a person in respect of post-1989 pension adjustments (PAs). It will apply to a Pension Plan member:

Who is a member of a registered pension plan (RPP) and terminates employment other than by retirement; and
Who elects to receive a lump-sum settlement.

Generally, the amount of the PAR will be equal to the excess, if any, of the sum of the PAs and past service pension adjustment (PSPAs) minus the lump sum settlement for post-1989 service. No PAR's are issued for this plan.

Past Service Pension Adjustment (PSPA)

A figure that represents, for tax purposes, the increase in the deemed value you earned in a retirement plan when that plan is subject to a retroactive increase in its benefit formula or your credited service in the plan is increased retroactively, such as through a past service purchase. A PSPA reduces your RRSP contribution room. No PSPA's are issued for this plan.

Pension Partner

A “pension partner” is a person to who you are married and have not been living separate and apart for 3 or more consecutive years, or if there is no such person, a person who has lived with you in a conjugal relationship for a continuous period of at least 3 years, or of some permanence, if there is a child of the relationship by birth or adoption.

For the purposes of this definition, persons are living separate and apart if they are living apart and either of them has the intention to live separate and apart from each other, or they had been living separate and apart for any period, and that period was interrupted or terminated by reason only that either of them became incapable of continuing to live separate and apart or of forming or having the intention to continue to live separate and apart of that person’s own volition, and the separation would probably have continued if that person had not become so incapable.

For members who retire before age 55 their Pension Partner is determined to be the person who is their Pension Partner on their 55th birthday. If a person retires after age 55 his or her Pension Partner is the person who was his or her Pension Partner on their retirement date.

Pensionable Service

Your pensionable service includes the years of service during which you contributed to the FSPP or for which you have received current service credits during a period of disability. The maximum pensionable service you may accrue is 35 years (includes prior service).

Prior Service

Prior service is service prior to your enrolment in the FSPP on which contributions have been made to LAPP. Prior service excludes service prior to January 1, 1974 if you were a member of another prior pension plan maintained by the City of Calgary.

R

Registered Plan

Refers to any plan that is formally registered in compliance with the pension standards legislation applicable to that jurisdiction and with the Income Tax Act. Registered plans receive favourable tax treatment.

Registered Retirement Savings Account (RRSP)

A retirement savings arrangement, provided through insurance companies or financial institutions, which allows you to tax-shelter contributions and investment earnings until they are withdrawn, usually during retirement. You can also use your RRSP assets to help with the purchase of a first home or to pay for your post-secondary education, but no later than the end of the year when you reach age 71.

Registered Retirement Income Fund (RRIF)

A retirement income arrangement, provided through insurance companies or financial institutions, in which funds are transferred from your RRSP at maturity and which pays you an annual amount, subject to certain minimum amounts, based on a percentage of the assets you have in the fund.

S

Salary

Your salary is your pensionable earnings paid to you according to your collective agreement, not including overtime or dry cleaning allowance. The Income Tax Act places a limit on the pension amount that can be paid from a registered pension plan. Your salary may be limited to reflect these tax limits.

V

Vested

You are vested immediately upon joining the FSPP. Vesting means you are entitled to a pension benefit from the FSPP. If you leave the FSPP, you are entitled to the value of the benefit you have accrued.

Y

Year's Maximum Pensionable Earnings (YMPE)

The YMPE is the year's maximum pensionable earnings for the Canada Pension Plan set by the Canada Revenue Agency (CRA). For calculation of the FSPP normal pension reduction at age 65, the final average YMPE is determined using the same 60 months of service used in calculating the highest average salary.

Supplementary Pension Plan Information

Quick Links

Resources

Glossary

Look up definitions of terms used throughout the site. Use the alphabet categories to find a particular term, or browse through the list.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Accrued Benefit

The amount of retirement benefit payable at a given date.

Administrator

The Board of Trustees has appointed Morneau Shepell to provide administration services for the FSPP.

Annuity

An annuity is a series of specified monthly payments to a person (the annuitant) purchased from a Canadian life insurance company. These payments are provided from a set sum of money for the lifetime of the annuitant under a contract with the life insurance company. The monthly annuity amount differs based on the size of the original sum of money and the form of annuity payment chosen.

B

Beneficiary

Your beneficiary is the person you designate in writing to receive benefits payable from your pension plan if you die. If you have an eligible spouse, the law requires that your beneficiary be your spouse unless your spouse waives this right (where permitted).

Bridge Benefit

The supplementary pension benefit paid from the date of your retirement to the date you turn age 65.

C

Cost of Living Adjustments (COLA)

Your pension will be increased annually by the Cost of Living (COLA). The increase is equal to the same percentage COLA adjustment under LAPP. This currently is 60% of the rate of change in the Alberta’s consumer price index (CPI).

Commuted Value

The current lump sum amount needed to fund your stream of monthly pension benefits in the future. The commuted value is calculated using prescribed interest rates and probable life-span factors. Commuted value is also referred to as the present value of your earned pension benefits.

D

Deemed Service

Deemed service only applies on death. If a member dies after having accrued 10 years of pensionable service, one of the options to the surviving pension partner is a pension that is based on deemed service projected to age 60.

Defined Benefit Pension Plan

A defined benefit plan is a type of plan that provides a pension at retirement based on a predetermined formula. Both the FSPP and the LAPP are defined benefit pension plans.

Dependent Child(ren)

An unmarried child or children who has not yet reached age 18 and who was dependent on you for support before your death.

E

Early Retirement

Refers to the earliest date at which you may receive a benefit from the FSPP. Depending on your age and service at the time you leave, a reduction to your pension for early retirement may apply.

F

Form of Pension

Refers to the type of benefit provided to your spouse or beneficiary upon your death. Typically, the forms of pension include: life only, life guaranteed five years, and joint and survivor.

H

Highest Average Salary

Your highest average salary is the average annual salary for the 60 consecutive months of service during which your salary was highest.

J

Joint and Survivor Pension

A form of pension in which you receive payments for your lifetime and your surviving spouse or joint annuitant receives a percentage of your payments for the reminder of his or her lifetime.

L

Life Only

A form of pension in which you receive payments for your lifetime only, with no death benefit payable to your beneficiary, regardless of when you die.

Life Guaranteed Pension

A form of pension in which the number of payments is guaranteed for a specified term e.g. 60 months. If you should die before receiving the guaranteed number of payments, your beneficiary will have a choice either to receive the lump-sum value of the remaining payment or continue to receive a monthly pension until the end of the guarantee period.

Life Income Fund (LIF)

A Life Income Fund (LIF) is similar to a Registered Retirement Income Fund (RRIF). Locked-in pension funds can be transferred to a LIF at retirement or termination of employment. Payments must start within two years of establishing a LIF. Legislation defines the minimum and maximum annual withdrawal limits.

Locked-in

The term locked in, when used to describe pension benefits means that you can never withdraw the lump-sum value in cash. Instead it must be used to provide you with a pension when you retire. Provincial legislation and the terms of the DB Plan determine when your pension benefits become locked in.

Locked-in Retirement Account (LIRA)

A Locked-in Retirement Account (LIRA) is also known as a locked-in RRSP. Locked-in pension funds can be transferred to a LIRA at retirement or upon termination of employment. A LIRA must be converted to a life annuity or a LIF by the end of the calendar year in which you reach age 71.

Locked-in Registered Retirement Savings Plan (locked-in RRSP)

A type of retirement account, similar to a LIRA, that is set up with the locked-in funds from a registered pension plan.

Locked-In Retirement Income Fund (LRIF)

A Locked-in Retirement Income Fund (LRIF), available in some provinces, is similar to a Registered Retirement Income Fund (RRIF). Locked-in pension funds can be transferred to a LRIF at retirement or termination of employment. Payments must start within two years of the establishment of the LRIF.

Legislation defines the minimum and maximum annual withdrawal limits.

M

Matrimonial Property Order

If your marriage ends, the courts treat your pension as one of the assets to be considered when property is divided. A matrimonial property order is a legal, binding Court Order that outlines how the division of your pension benefit is to be determined. Your matrimonial property order must comply with all applicable pension legislation.

N

Normal Retirement

Normal Retirement or Pensionable Age is the first of the month coincident of next following your 60^th birthday. You cannot accrue service past Pensionable Age.

P

Pension Adjustment (PA)

A figure that represents, for tax purposes, the deemed value you earned in a retirement plan for a particular year. PAs are issued to all members of defined benefit plans, money purchase plans, and deferred profit sharing plans, regardless of whether they make contributions. A PA reduces your RRSP contribution room. PA's are typically not issued for this plan.

Pension Adjustment Reversal (PAR)

A PAR restores a portion of RRSP contribution room to a person in respect of post-1989 pension adjustments (PAs). It will apply to a Pension Plan member:

Who is a member of a registered pension plan (RPP) and terminates employment other than by retirement; and
Who elects to receive a lump-sum settlement.

Generally, the amount of the PAR will be equal to the excess, if any, of the sum of the PAs and past service pension adjustment (PSPAs) minus the lump sum settlement for post-1989 service. No PAR's are issued for this plan.

Past Service Pension Adjustment (PSPA)

A figure that represents, for tax purposes, the increase in the deemed value you earned in a retirement plan when that plan is subject to a retroactive increase in its benefit formula or your credited service in the plan is increased retroactively, such as through a past service purchase. A PSPA reduces your RRSP contribution room. No PSPA's are issued for this plan.

Pension Partner

A “pension partner” is a person to who you are married and have not been living separate and apart for 3 or more consecutive years, or if there is no such person, a person who has lived with you in a conjugal relationship for a continuous period of at least 3 years, or of some permanence, if there is a child of the relationship by birth or adoption.

For the purposes of this definition, persons are living separate and apart if they are living apart and either of them has the intention to live separate and apart from each other, or they had been living separate and apart for any period, and that period was interrupted or terminated by reason only that either of them became incapable of continuing to live separate and apart or of forming or having the intention to continue to live separate and apart of that person’s own volition, and the separation would probably have continued if that person had not become so incapable.

For members who retire before age 55 their Pension Partner is determined to be the person who is their Pension Partner on their 55th birthday. If a person retires after age 55 his or her Pension Partner is the person who was his or her Pension Partner on their retirement date.

Pensionable Service

Your pensionable service includes the years of service during which you contributed to the FSPP or for which you have received current service credits during a period of disability. The maximum pensionable service you may accrue is 35 years (includes prior service).

Prior Service

Prior service is service prior to your enrolment in the FSPP on which contributions have been made to LAPP. Prior service excludes service prior to January 1, 1974 if you were a member of another prior pension plan maintained by the City of Calgary.

R

Registered Plan

Refers to any plan that is formally registered in compliance with the pension standards legislation applicable to that jurisdiction and with the Income Tax Act. Registered plans receive favourable tax treatment.

Registered Retirement Savings Account (RRSP)

A retirement savings arrangement, provided through insurance companies or financial institutions, which allows you to tax-shelter contributions and investment earnings until they are withdrawn, usually during retirement. You can also use your RRSP assets to help with the purchase of a first home or to pay for your post-secondary education, but no later than the end of the year when you reach age 71.

Registered Retirement Income Fund (RRIF)

A retirement income arrangement, provided through insurance companies or financial institutions, in which funds are transferred from your RRSP at maturity and which pays you an annual amount, subject to certain minimum amounts, based on a percentage of the assets you have in the fund.

S

Salary

Your salary is your pensionable earnings paid to you according to your collective agreement, not including overtime or dry cleaning allowance. The Income Tax Act places a limit on the pension amount that can be paid from a registered pension plan. Your salary may be limited to reflect these tax limits.

V

Vested

You are vested immediately upon joining the FSPP. Vesting means you are entitled to a pension benefit from the FSPP. If you leave the FSPP, you are entitled to the value of the benefit you have accrued.

Y

Year's Maximum Pensionable Earnings (YMPE)

The YMPE is the year's maximum pensionable earnings for the Canada Pension Plan set by the Canada Revenue Agency (CRA). For calculation of the FSPP normal pension reduction at age 65, the final average YMPE is determined using the same 60 months of service used in calculating the highest average salary.

Supplementary Pension Plan Information

Quick Links

Resources