Frequently asked questions (FAQs)
Pension Plans
When can I join the TRIO Pension Plan?
Membership in the TRIO Pension Plan (“the Plan”) is mandatory for all new hires after January 1, 2008. Employees are required to join the Plan at the latest date of 2 years after the date they were employed by the municipality. Certain municipalities have earlier eligibility periods for its employees so each employee should check with the human resource manager for the municipality to confirm the date they would be eligible to join the Plan. You must complete the Enrolment Form and the Spouse or Cohabiting Partner & Beneficiary Designation Form to enrol in the Plan.
Members can change their beneficiary designation at any time during their Plan membership. If the member has a spouse, pension legislation may require that any death benefits under the Plan be payable to the spouse regardless of beneficiary designation. Complete the Spouse or Cohabiting Partner & Beneficiary Designation Form to change beneficiary designations.
What if my personal circumstances change? How do I notify you?
Members should complete the Notice of Change in Member Information to notify Mercer’s if any of the personal information currently on file (address, marital status,etc.) changes.
Complete the Notice of Change in Member Status to notify Mercer’s of employment termination, retirement or death.
Can I buy additional past service under the Plan?
The Plan allows members to purchase past service for the period between their date of employment with the municipality and their date of entry into the Plan. Should a member be interested in purchasing additional past service, contact the human resources manager and they will request Mercer’s to determine the cost to purchase additional service and forward the details to the member for approval.
Can I continue to make contributions during periods of disability, maternity leave or other leave of absence?
If members wish to continue to accrue service and pension benefits during a period of leave due to disability, maternity leave or other employer approved leave of absence, they may do so by continuing to make contributions during the period of leave. The level of contribution required during the period of leave would be based on the rate of pay immediately prior to the period of leave.
What does the employer contribute to my pension benefit?
Employers are required to contribute to the Plan an amount determined by the actuary which would be sufficient, when combined with the members’ contributions, to fund the cost of providing the promised pension benefit to the member.
What is the procedure to transfer my accrued Plan pension from a previous municipal employer who participates in the Plan to my current municipal employer who also participates in the Plan?
Complete Appendix A – Transfer Application and send it to the address noted on the Appendix. TRIO will provide a copy to Mercer’s who will determine the number of years of service that will be provided under the current municipal employer’s Plan participation option in lieu of the years of service under the previous municipal employer’s Plan participation option. Mercer’s will then forward details to the member for acceptance or otherwise.
What is the procedure to transfer my pension credits with the NL Provincial Pension Plan to my municipal employer’s option under the Plan?
Complete Appendix A – Transfer Application and send it to the addresses noted on the Appendix. The Province will complete Appendix B – Transfer Estimate and provide TRIO and Mercer’s with a copy to determine the number of years of service that can be purchased with the value provided. Appendix B is then completed by Mercer’s and sent to the member for acceptance or otherwise.
How is my Plan pension benefit determined?
Depending on the member’s Plan participation option, pension benefits are determined based on 2% of the member’s best 5 average earnings times years of credited service or 2% of the total earnings over the member’s entire period of credited service. Members should refer to their Employee Booklet which would provide details on the benefit formula for each Plan participation option.
When can I retire?
Members can retire on the first of any month between their early retirement date (ERD) and their normal retirement date (NRD). Depending on the member’s plan participation option the ERD will be either age 50 or 55 and the corresponding NRD will be either age 60 or 65. If a member elects to retire and commence pension benefits prior to their NRD, an early retirement reduction may be applied to your pension benefit. The ERD, NRD and amount of any early retirement reduction would depend on the member’s Plan participation option. Members should refer to their Employee Booklet which would provide details on the benefits under each Plan participation option.
Can I retire early without an early retirement reduction being applied to my pension benefit?
Certain Plan participation options allow for unreduced early retirement when a member’s age and years of employment with the municipality total 80 or 85 points. Members should refer to their Employee Booklet to determine whether this benefit is provided under their plan participation option.
Will my pension benefit increase after I retire and commence receiving benefit payments?
Certain Plan participation options provide for indexing on pension benefits after retirement. Any increase provided would be based on the increase in the Consumer Price index, subject to an annual maximum. Members should refer to their Employee Booklet to determine whether this benefit is provided under the Plan participation options.
What happens to my pension benefits if I terminate employment before I reach my early retirement date?
If an employee has been in the plan for a period of less than two years and then terminates employment, they would be entitled to receive a refund of any member contributions, accumulated with interest. This refund could be payable as a cash benefit, less applicable withholding taxes or transferred to a tax-sheltered registered retirement savings vehicle.
If an employee has been a member of the Plan for longer than two years, they have become vested and are entitled to receive a deferred pension benefit commencing on the first of any month between their ERD and NRD (an early retirement reduction would be applied if pension commences prior to NRD).
Alternatively, the member could elect to transfer the commuted value of their deferred pension benefit to a locked-in registered retirement savings vehicle. The commuted value represents the current day cost of providing the promised deferred pension benefit. In addition, the member may be entitled to “excess contributions” as the member’s contributions cannot be used to fund more than 50% of the benefit earned after January 1, 1997. Excess contributions, if any, can be paid as a cash refund or transferred to a tax-sheltered registered retirement savings vehicle.
What does “locked-in” mean?
Once a member has participated in the Plan for a period of two years, their pension benefits become locked-in. This means that if a member were to terminate after two years of Plan membership but prior to their early retirement date, the commuted value of their deferred pension benefit cannot be paid as cash and, if transferred from the Plan, must be transferred to a locked-in registered retirement savings vehicle.
Will my TRIO pension be clawed back by other pension benefits that I may/will receive when I retire?
No. Pensions that are paid under the TRIO plan are paid in addition to benefits or pensions received from other sources (e.g., Canada Pension, Old Age Security).
What happens to my pension benefit if I separate or divorce from my spouse?
If your marriage or common-law relationship ends, provincial legislation may require that the pension benefits you’ve earned during your marriage be shared with your former spouse. The actual division of pension benefits, if any, will be according to a court order or separation agreement.
What happens to my pension benefit when I die?
If a member were to die during active employment, a death benefit would be payable to the member’s beneficiary. This death benefit would be equal to the amount the member would have received had they terminated employment immediately prior to their death.
If a member were to die after retirement and commencement of pension payments, a death benefit would be payable to the member’s beneficiary in accordance with the form of pension elected at the time of retirement.
What forms of pension are available to me on retirement?
The Plan provides a pension benefit payable for the member’s lifetime, with the guarantee that payments will be made for at least 120 months in any event. Should the member die prior to receiving 120 payments, the balance would be payable to the member’s beneficiary.
Alternatively, the member may elect to receive a lower pension benefit with a longer guarantee period, or if the member has a spouse, a survivor benefit which will be payable for the spouse’s lifetime in varying percentages of the member’s benefit.
What is a Pension Adjustment?
A pension adjustment (PA) is the deemed value of your employer sponsored pension as determined under the Income Tax Act. PAs are reported each year on your T4 income tax form and used by the Canada Revenue Agency to determine your permissible level of contributions to a registered retirement savings plan in the following year.