NAV Canada Settlement FAQ
Categories: IBEW, IBEW 2228, Ontario
- I thought that when I turned 65 and my CPP payouts kicked in, the company pension plan was reduced by the same amount. If my CPP payouts are higher, aren’t my company pension plan payouts also reduced by that same amount?
- Traditionally, company pension plans were set up in a way where the payouts to its members are reduced when they turn 65 as their CPP benefits start being paid. This is an intentional coincidence that the company pension benefit was reduced by the CPP benefit, but it is specifically reduced by approximately 15% when turning 65 regardless of the CPP benefit received. It intended to ensure that the member received 70% of their best six-year wages throughout their retirement.
So if your CPP benefits have increased (as they have), you will receive more CPP money and your company pension plan will not be offset by that increase.
- If I’m on the Plan B pension plan, how does the CPP change affect me?
- Don’t stress! This alteration won’t have any impact on you. You’re good to go!
- Common misconception that because the plan is “integrated” with CPP, the enhanced CPP benefits would reduce the benefits payable from the NCPP.
- Not so. Any change in benefits would require an amendment to the NCPP. The link to CPP benefits is implicit (i.e. it is indirect).
- For our newly appointed ops folk who will be receiving lieu days how will this roll out? Will the entitlement be prorated at date of signing, implementation date, delayed until next leave year, or given full allotment on day of signing?
- Prorated on the day of signing.
- Will the non-ops to ops transition be immediate upon ratification or will the company still provide the 30 days notice to affected employees?
- It won’t be immediate and automatic. There will be a period of transition that will respect the rules regarding posting of schedules to ensure that the transition is done correctly for pay and status in Workday.
- QPP- How will the delinking language affect plan A members living in Quebec?
- QPP enhancements are the same as CPP enhancements but starting from a 1st level contribution rate of 0.45% higher than CPP.
- 1st level contribution in 2023 and later of 6.40% in QPP vs 5.95% in CPP
- The amount of increase due to QPP enhancements is the same as CPP, though inflationary impacts are slightly higher.
- Total increase in 2024 QPP contributions of $309.60 vs. 301.05 for CPP, for 2025 $497.60 QPP vs. $489.05 for CPP.
- Total QPP 2025 contributions of $4536 are $292.50 higher than CPP 2025 contributions of $4243.50.
- Will my 5% TCP be clawed back?
- Regarding the wage implementation for 2024 will it be 4% then 3.5% or 7%?
- It will be a 4.0% increase and then a 3.5% increase on that new amount.
- If you are placed on a VIL training at the last minute and consequently experience a shift change to accommodate the VIL hours, are you entitled to claim a premium for the shift change?
- This would fall under current shift change practices under article 23.11 b and d. Unless shift change is within 1hr of the normal shift times outlined in article 23.08.
- With the new Vacation banking cap will I be required to use my vacation?
- No, with the new 112.5hr cap you be allowed to carry over this amount for one year with no consultation with management.
- When switching from non-operational status to operational is the employee required to be drug tested as per the drug and alcohol policy?
- No, this has not been required in past practice.
- How will an individual transition to the new top increment?
- If you have been at the top increment for more than 12mths you will immediately transition to the new top increment retroactively Jan 1, 2024. If you have only been at the old top increment for less than 12mths you will transition to the new top on your anniversary date.
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