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This is a special
information feature where we post items of interest to our members.
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As You Approach Retirement
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 If you're approaching retirement,
take these steps...
- Request a pension
estimate from TRAF.
- Maximize your pension
before you retire. (To learn how, check the TRAF website here.)
- Go to a pre-retirement
seminar.
- Obtain and read a copy
of RTAM's pre-retirement guide, Ready, Set,
Retire. It is full of great advice.
- Visit a TRAF Member
Services Representative to review your personal TRAF
benefits.
- Consider, then select,
your plan option. (Remember, you must complete
a TRAF pension application form before your pension can be
processed.)
THINKING OF RETIRING? What you should know about your pension BEFORE
you retire!
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Questions About Your Retirement?
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Call
TRAF...
Room 330,
Johnston Terminal, 25 Forks Market Road, Winnipeg, MB R3C 4S8
Phone: 204-949-0048 Toll Free:
1-800-782-0714 Fax: 204-944-0361
Email: info@traf.mb.ca Website: www.traf.mb.ca
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RTAM Benefit
Plans Information
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Information on each of the
benefit plans developed by Johnson Inc. for RTAM can be
seen here.
Check out all your options before selecting a specific plan to ensure that
the fit is right for you. To access RTAM benefit plans, one has to
be an RTAM member.
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Things I wish I'd known about my TRAF
pension
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"My pension isn't
affected as much as I thought by switching to part time."
Many people
think that switching from part time to full time will drastically reduce
their average salary upon which their eventual pension is calculated. While
it's true your service accrues at the part time rate, the salary used to
calculate your pension is the full time salary for the same classification
level. A half time teacher accumulates exactly one half the pension
that a fulltime teacher earning the same salary rate accumulates.
"I can transfer my
pension and service from province to province."
Providing a
reciprocal agreement exists between provincial teachers' pension plans, and
you qualify to participate, then you will be able to transfer your pension
credits to or from each plan. Call a TRAF Member Services Representative if
you have service in another province.
"There are no
milestone years regarding the accumulation of pension benefits."
Each day of
personable service counts toward calculating your pension benefit. Once you've
qualified for a pension, the amount of the pension is calculated using each
and every service day. The only difference between one year of service and
one more is the service number used in the pension calculation formula.
There is no additional "jump" or benefit when you hit a
"milestone" year.
"No matter how
long I teach, my pension is subject to a maximum."
The maximum
pension a teacher may accumulate is 70% of average income subject to
Revenue Canada maximums. Each case is different but, generally speaking,
you must teach 40 years or more to attain 70%.
"I thought my
deferred salary leave counted towards my pension."
Other than a
group insurance paid disability leave or a purchased educational leave,
teachers do not receive pensionable service for any period of leave.
"It's less costly
to increase my pension earlier in my career compared to later."
TRAF offers
teachers a number of opportunities to "buy back" service missed
through things like refunds, educational leave, substitute service, etc. Generally
speaking, the sooner this is paid the less costly it is.
"I can't change my
designated spouse (for survivor benefits) if I remarry after retiring."
At the time
you apply for your pension, the spouse you designate as a recipient of
benefits will remain the designated beneficiary, regardless of any changes
in your relationship or marital status.
"Years of
employment and pensionable service are different."
Even though
you've been a teacher for 20 years, it's possible you may only have 19
years of pensionable service depending on whether you have taught part
time, taken a leave of absence, etc. Check your benefits statement to
determine your pensionable service, which is the number TRAF uses to
calculate your pension benefits.
"I can't change my
plan option once the pension is in pay."
Once you pick
a plan option and your pension is in pay, you may not change your option.
"The COLA calculated on my
pension is different than the increase to the Canada Pension Plan."
The Consumer Price Index (CPI) for
Canada was chosen as the indicator for pension adjustments. To calculate
the CPI each year for teacher pensions, the difference is measured by
comparing the December CPI of one year with the December CPI of the next.
For example, the difference between the CPI figure of December 2000 and
December 2001 was + 0.7%, thus a "full COLA" of 0.7% was paid in
July, 2002. In contrast, the Canada Pension Plan (CPP) uses the changes of
the CPI from one December to the next December. In 2002 this was 3.9%. Over
the longer period of time, both methods work out about the same, but the
short term impact in some years for teachers is less of a COLA or none at
all. To change the method of calculation means changing The Teachers_
Pension Act. The reality is that our smaller COLAs are caused by
insufficient funds in the Pension Adjustment Account (PAA) to increase
them.
(See the "Information" articles above on this web site page to
understand why that is.)
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