AFM-EPW
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To prudently administer the Plan in order to provide the best possible benefits for its members and beneficiaries. PRIVACY STATEMENT In order to protect your rights to privacy, personal information
you have provided to the AFM-EPW Fund (Canada) is collected by the
Trustees of the AFM-EPW Fund ( Canada) primarily for the purposes
of determining eligibility for benefits and administering the AFM-EPW
Fund (Canada). In this regard, use and disclosure of your personal
information will be restricted to the Trustees of the AFM-EPW Fund
(Canada), their employees and staff, and their professional advisors
or agents and other parties for the purposes of assisting to determine
eligibility for benefits and administering the AFM-EPW Fund (Canada).
The Trustees may disclose your personal information to the American Federation of Musicians where required to ratify agreements and to the Special Payments Fund where required to process cheques for your benefit. When required by law, personal information may also be disclosed to authorized agencies, including law enforcement agencies and the Canadian Revenue Agency. Also, personal information may be disclosed to specific individuals as authorized by you. Questions concerning the collection, use or disclosure of personal information should be directed in writing to Ellen M Versteeg Lytwyn at the Fund office.
AMERICAN FEDERATION OF
MUSICIANS'AND EMPLOYERS' BOARD OF TRUSTEES
AFM-EPW FUND (CANADA) STAFF
DIRECTORY
AMERICAN FEDERATION
OF To All covered Employees and Musicians: The Board of Trustees of the American Federation of Musicians' and Employers' Pension Welfare Fund (Canada) is pleased to provide you with this Summary Plan Description of the Rules and Regulations of your Pension Plan. This Summary booklet incorporates the main features of the Plan. As you read through it, you will learn how you become a Plan member, what your benefits are and how they are calculated. In this booklet, we have tried to describe the Plan' s provisions
as clearly as possible in understandable language. Please read this Summary carefully and share it with your beneficiaries. It is mportant that you are aware of your retirement benefits and the Plan's survivor protection features. We also suggest that you keep this Summary handy for future reference. If you have any questions or require any additional information regarding the Pension Plan and how it affects your pension rights and benefits, you should contact the Fund Office at the address listed on the preceding page of this booklet. You may also update personal information by fully completing the forms you will find at the back of this booklet and forwarding it to the Fund Office. This Pension Plan represents important protection for you and your family, and the Board of Trustees is proud to oversee the continued operation of this valuable program. With our very best wishes for the future. BOARD OF TRUSTEES July 2004
INTRODUCTION
The American Federation of Musicians' and Employers' Pension Welfare Fund (Canada) was established primarily as a result of collective bargaining between employers and the the American Federation of Musicians. The Plan is registered under the Ontario Pension Benefits Act, 1990 and under the Income Tax Act. The registration number is 0215145. As the Plan is a multi-jurisdictional plan, the pension legislation of the province in which a member is employed will apply to them even though the Plan is reg stered in Ontario. The funding of the Plan is based on contributions by employers. Employee contributions are not required nor are they permitted. Contributions made to the Fund are held in a trust fund for the purpose of providing benefits to eligible members and their beneficiaries and to pay for the administrative expenses of the Fund. The Plan is administered by a Board of Trustees, consisting of an equal number of employee and employer representatives,who are responsible for the overall operation of the Plan. They serve without compensation. Records and benefit payments are processed at the Fund Office which is managed by a Fund Administrator appointed by the Board of Trustees. Under this Plan, there are Normal, Early, Deferred, Special Retirement, Disability and Survivor benefits. A general description of each type of pension available under the Plan, the eligibility requirements to receive such a pension, and how the amount you may receive for each category of pension will be calculated is provided in this Summary. This booklet reflects many of the Rules and Regulations of the Plan which were in effect on July 1, 2004. If you terminated your participation in the Plan prior to July 1, 2004 the Rules and Regulations of the Plan as they existed on the date you last worked for a contributing employer will apply to you. When this Summary refers to "you", it assumes that you are an employee or member covered by the Plan, or beneficiary of a covered employee or member. The explanatory material which follows is not intended to either change or interpret the Rules and Regulations of the Plan as adopted by the Board of Trustees. The Trustees may, however, from time to time, change, amend or revise the Rules and Regulations of the Plan. You will be notified of any changes to the Rules and Regulations of the Plan that may have an impact on your entitlements. PARTICIPATION The first way to become a Member is to have 24 months of vesting
service without a 6 consecutive For example, Michel had his first contribution for an engagement he played on May 15, 2003. He will become a Member of the Plan, 24 months later, on May 15, 2005 as long as there is no period of 6 consecutive months for which he has no contributions. After December 31, 2000
A calendar year is an actual calendar year and not a 12 month period. OR 2. you are already a Member of the Plan at December 31, 2000 and
have contributions made on your behalf after December 31, 2000,
but before your Membership in the Plan terminates
OR (ii) you have attained age 65 while you are a Member of the Plan.
This section describes when you are eligible to receive each type
of pension and the amount of that pension. Please keep in mind that
you may receive only one type of pension from the Plan. Payment
of a pension benefit from this Plan is not automatic. You must apply
for a benefit by completing and submitting the necessary forms.
Example: Julia who is exactly 62 years old has calculated, based on the contributions made to the Plan on her behalf to date, that she would be entitled to a monthly Normal pension of $660 at age 65. If, however, she retires today at age 62, her Early pension would be calculated as follows: 1. Normal pension = $660.00 Julia will receive an Early pension of $581 per month since the Plan rounds the pension to the nearest dollar amount. Special Retirement Pension (Effective January 1, 2000) When Am I Eligible for a Special Retirement Pension? You may retire on a Special Retirement pension if:
How Much Will My Special Retirement Pension Be? If you retire at age 61 or older, there will be no reduction in your pension. If you are younger than 61 when you retire, the Special Retirement Pension has a lower reduction than the Early pension. If you are younger than age 61 the reduction is 1/ 3 of 1% for each month you are younger than age 61. The following is a chart showing the reduction for special retirement pension at each retirement age:
Example: Theresa who is exactly 58 years old has calculated, based on contributions made to the Plan on her behalf to date, that she would be entitled to a monthly Normal pension of $750.00 at age 65. If, however, she retires today at age 58 her special retirement pension would be calculated as follows: 1. Normal Pension = $750.00 Disability Pension When Am I Eligible For A Disability Pension? You will be eligible for a Disability pension if you:
How Is Total And Permanent Disability Defined? You are considered totally and permanently disabled if, on the basis of medical evidence satisfactory to the Trustees:
If you apply for a Disability pension, you may be required to submit to an examination by a physician selected by the Trustees. If you are awarded a Disability Pension you may also be re-examined at periodic intervals as the Trustees see fit. How Much Will My Disability Pension Be? The Disability pension is a monthly benefit equal to the amount of the Normal pension you would be entitled to based on the contributions made to the Plan on your behalf up to the date of your disability. Example: John becomes totally and permanently disabled in January, 2002 at the age of 42. He has $25,000 in contributions ($20,000 in contributions before 1992 and $5,000 in contributions after January 1, 1992). John's Disability pension will be calculated as follows: Pre-1992 Pension $3.80 x 200 = $760.00 Deferred Pension Who Is Eligible For A Deferred Pension? If you are vested and you have terminated your membership in the Plan before you retire, you can receive a deferred pension. This is provided you have not chosen the portability option at the time of your termination. The Deferred pension is payable to you when you choose to retire at any time after your 55th birthday. In any event, you must commence to receive your deferred pension no later than the end of the calendar year in which you turn 69. How Much Will My Deferred Pension Be? Depending on your age at retirement, the monthly amount of your Deferred pension is calculated in one of two ways. Between Age 55 and 65 - If your Deferred pension begins between the ages of 55 and 65, the monthly amount of your Deferred pension is calculated the same way as an Early pension. Between Age 65 and 69 - If your Deferred pension begins after you have reached age 65, the monthly amount of your Deferred pension is calculated the same way as a Normal pension. Note: Please refer to page 3 for methods on calculating Early and Normal pensions. TERMINATION When Does Termination of Membership In The Plan Occur? If you are a musician and you are not vested, your membership in the Plan will terminate as of the last day of the calendar month coincident with or next following 6 consecutive months for which no contributions are made on your behalf. If you are a musician and you are vested, your membership in the Plan will terminate as of the last day of the calendar month coincident with or next following 24 consecutive months for which no contributions are made on your behalf. If you are not a musician (ie; you are a Local officer or office staff member), your membership will terminate on the day you terminate your employment with an employer. What Am I Eligible to Receive If I Terminate My Membership Before I Retire? If you are vested at the time you terminate your membership, you will be entitled to a Deferred pension, which will be payable at age 65 or, if you choose, any time after age 55 at a reduced amount. For more information concerning the Deferred pension, refer to the section on "Pension Benefits". If you are vested and under age 55 at the time you terminate your membership in the Plan, instead of a deferred pension,you may elect the Portability option. What Is The Portability Option? This option permits you to transfer the lump sum commuted value of your Deferred pension to:
OR
OR
Any funds transferred under the Portability option must be locked-in until at least age 55 and must be used to provide pension benefits at retirement in accordance with the law which applies to you. The law does not permit you to take these funds as a lump sum cash payment. You should be aware that if you choose the Portability option,you will not be entitled to any further benefits in respect of your membership before the transfer. If you later return to employment, you will be treated as a new employee, and you must again satisfy the rules to become a Member of the Plan. WORK AFTER RETIREMENT What If I Return to Work After I Retire? Income Tax regulations prohibit a Plan member from accruing additional pension plan credits at the same time he or she is receiving benefit payments. While ensuring regulatory compliance, currently the Plan is able to provide the following for the benefit of our Members, who return to work after retiring. If you retire and return to work before the end of the calendar year in which you turn 69, you will continue to receive your pension from the regular AFM-EPW plan and will receive an additional pension benefit based on the employer contributions made to the post-retirement contribution account. The additional pension benefit which you will receive is described in the following section. How does the Post-Retirement Contribution Account Work? The post-retirement contribution account is separate from the AFM-EPW plan and does not provide a defined pension benefit. The total amount of employer contributions made on your behalf for the calendar year is converted to an additional monthly pension benefit. A minimum of $100 in post-retirement contributions is required. The amount of additional monthly benefit is calculated using actuarial methods which take into account your age and the applicable interest rate at the time your post-retirement contribution account benefit is calculated. The additional monthly pension benefit will be effective on the first of the year following the calendar year in which contributions to the post-retirement contribution account were made on your behalf, and will be added to your regular pension benefit cheque. FORMS OF PENSION PAYMENT When Will My Pension Benefit Commence? With the exception of the Disability pension, your pension benefits shall first be payable no sooner than the first day of the first month after you have met all the requirements for entitlement to benefits. This includes the filing of an application. Your Disability pension will be payable for the month following the commencement of your disability as approved by the Trustees. However, if you apply for a Disability ension more than 12 months after the commencement of your disability, retroactive payments will only be made for a maximum of 12 months, including the month in which the application is received. How Is My Benefit Paid? You will receive your pension in the form of equal monthly payments. Your pension will be paid in the Joint form if you have a spouse on the date that the pension benefits commence and in the Normal form if you do not. Most provinces in Canada have different legal definitions of spouse. The definition of spouse that is applicable to you, is the one for the province in which you were employed. Generally, a spouse is a person to whom you are married, or with whom you are in a common law relationship for a period of time. Please contact the Fund office for additional information regarding the definition of a spouse. Joint Form - If You Do Have A Spouse By law, if you have a spouse as defined by the Plan on the date your pension begins,the pension you are entitled to must be paid as a 66-2/3% joint and survivor benefit. The Plan provides 2 types of joint and survivor benefits. Joint and Survivor 66-2/3% - No Guarantee Period Under the Joint and Survivor 66-2/3% (no guarantee Period), you will receive your monthly pension for as long as you live. Upon your death, your spouse, if still living, will receive 66-2/3% of your pension for the remainder of his or her lifetime. The monthly pension you will receive in this Joint form will be the same as you would receive under the Normal form. Joint and Survivor 66-2/3% - 10 Year Guarantee Under the Joint and Survivor 66-2/3% (10 year guarantee) the monthly amount you receive will be reduced, based on your age and your spouse’s age. This amount is payable for your lifetime, with a 10 year guarantee. If you die before receiving 10 years of payments, your spouse will receive the remaining guaranteed payments. After the 10 year guarantee period is over, your spouse, if still living, will receive 66-2/3% of the monthly amount for his or her lifetime. If you and your spouse both die before the 10 year guarantee period has expired, the remaining guaranteed payments will go to the designated beneficiary or estate. You and your spouse may waive the payment of the joint and survivor benefit by submitting a Spousal Waiver Form to the Fund office. This waiver must be filed with the Fund office before payment of your benefit commences. The time limit for filing the Spousal Waiver varies by province as follows: Alberta & British Columbia – 90 days before the commencement of the pension All Other Provinces – 12 months before the commencement of the pension Whether or not it will be beneficial to waive the joint and survivor pension,will depend on the specific circumstances of you and your spouse. Individuals considering the waiver of a joint and survivor pension should seek independent legal and financial advice. Once you file a properly completed Spousal Waiver Form, you will be eligible to receive your pension benefit in the Normal form, as though you did not have a spouse. Normal Form - If You Do Not Have A Spouse If on the day you retire, you do not have a spouse, your pension will be paid to you in equal monthly payments for as long as you live with a minimum guarantee of 120 payments. If you die before receiving 120 monthly payments, your beneficiary or estate will continue to receive benefit payments until the balance of the 120 guaranteed payments has been made.If you die after receiving 120 monthly payments, your pension payments will cease with the last payment payable in the month of your death. Your beneficiary is the person or persons whom you have designated to receive benefits under the Plan upon your death. You may change beneficiaries at any time by notifying the Fund office in writing. In order for the change of beneficiary to be effective, it must be received by the Fund office prior to any payments being made to your beneficiary whose name is on file at the Fund office. Small Pensions - What If My Monthly Pension Is A Small Amount? Instead of receiving equal monthly payments your pension may be paid as a one time lump sum payment if it is considered a "Small Pension". The definition of "Small Pension" varies by province as follows: If you are affected by the pension law of New Brunswick, Nova Scotia, Ontario, Prince Edward Island or Saskatchewan and your monthly pension at age 65 is less than 1/12 of 2% of the Years Maximum Pensionable Earnings (YMPE) (see page 2) instead of the monthly pension, you may choose a one time lump sum payment which is equal to the commuted value of your monthly pension entitlement. If you are affected by the pension law of Alberta you may receive a one time lump sum payment which is equal to the commuted value of your monthly pension entitlement if 1. the monthly pension that would be payable at 65 is less than 1/12 of 4% of the YMPE OR 2. the commuted value of the monthly pension payable at 65 is less than 20% of the YMPE If you are affected by the pension law of British Columbia you may receive a one time lump sum payment which is equal to the commuted value of your monthly pension entitlement if 1. the monthly pension that would be payable at 65 is less than 1/12 of 10% of the YMPE OR 2. the commuted value of the monthly pension payable at 65 is less than 20% of the YMPE If you are affected by the pension law of Manitoba you may receive a one time lump sum payment which is equal to the commuted value of your monthly pension entitlement if 1. the monthly pension that would be payable at 65 is less than 1/12 of 4% of the YMPE OR 2. the commuted value of the monthly pension that would be payable at 65 is less than 4% of the YMPE If you are affected by the pension law of Newfoundland or Quebec, and if the commuted value of your monthly pension that would be payable at age 65 is less than 4% of the YMPE, you may choose to receive a one time lump sum payment which is equal to the commuted value of your monthly pension entitlement. SURVIVOR BENEFITS How Is My Spouse Protected If I Die Before I Retire? If you are vested and die before you retire, your spouse is entitled to a pre-retirement spouse's benefit. Your spouse will have a choice on the form of benefit. This will depend on the provincial legislation you were affected by. If you are not affected by the pension law of Alberta, British
Columbia, Manitoba, Newfoundland or If you are affected by the pension law of Alberta, British Columbia, Manitoba, or Saskatchewan, Your spouse may choose an immediate monthly pension or your spouse may elect the portability option as described earlier in this booklet. If you are affected by the pension law of Newfoundland, your spouse may choose an immediate monthly pension or the portability option described earlier. However, if you die before turning 55 your spouse has the additional option of electing to receive a lump sum payment the value of which is equal to the commuted value of the benefit you accrued to the date of your death. The immediate monthly pension is based on the lump sum commuted value of your accrued benefit at the date of your death and your spouse’s age. This monthly pension is payable for your spouse’s lifetime, with the first 120 payments guaranteed. The lump sum commuted value of your accrued benefit is based on many factors. Some of them are - your age at your death, the interest rate in effect, if you were age 55 or older at your death,if you were eligible for the Special Retirement Pension. Where provincial legislation permits, you and your spouse may waive the right to the pre-retirement spouse's benefit by signing the prescribed Waiver Form available from the Fund office. If you and your spouse do so, it will be considered that you do not have a spouse eligible for the pre-retirement spouse's benefit and the following benefit will apply. What Happens To My Benefits If I Do Not Have A Spouse? If you do not have an eligible spouse,or you and your spouse have waived his or her right to the pre-retirement spouse's benefit,you may designate a beneficiary to receive a pre-retirement death benefit. If you die before retiring, and you are vested, your beneficiary will receive a lump sum payment equal to the commuted value of the pension benefits you have earned to the date of your death. If you have not designated a beneficiary, the benefit will be paid to your estate. APPLYING FOR BENEFITS When Must I Apply For Benefits? You are urged to file your application at least three months before your intended retirement date. Early filing will avoid delays in processing your application and the payment of benefits. You must apply prior to turning 69 as the Income Tax Regulations state that you must start your benefits no later than the end of the calendar year in which you turn 69. If you fail to start your benefits by that time, the Fund office must get special permission from Canada Customs and Revenue Agency (CCRA) (formerly, Revenue Canada) to pay your benefits. Also, in these cases, there are no retroactive payments allowed How Do I Apply For Benefits? Payment of a pension benefit from this Plan is not automatic. You must apply for a benefit by completing and submitting the necessary forms. Pension application forms are available from the Fund office. You may contact the Fund office or you may mail the form at the back of this booklet to request an application form. As soon as the Fund office receives your request, an application form will be mailed to you, together with instructions on how to fill it out. As part of the application you will be required to submit proof of age for both yourself and your spouse and proof of marital status, if needed. When you complete the application and have attached the required proofs of age and marital status, you should sign the application and return it to the Fund office. The Fund office will acknowledge receipt of your application and
will notify you if any additional How Does My Spouse Or Beneficiary Apply For Benefits? As soon as possible after your death, your spouse or beneficiary should contact the Fund office in writing and submit a copy of your death certificate. Your spouse or beneficiary will be asked to complete an application form and submit proof of age, if applicable, and will be advised if additional information or proof is required. Your spouse or beneficiary should write to the Fund office with any questions concerning eligibility for pre-retirement spouse's or death benefits. OTHER INFORMATION What If I Had overed Employment In Both Canada And The United States? If you lack sufficient service to be eligible for a pension because you have covered employment in this Plan and in the American Federation of Musicians'and Employers' Pension Fund in the United States, under certain circumstances, your employment under the United States Plan may be recognized by this Plan for purposes of meeting the service requirement for benefits under this Plan. To determine if you may be eligible for a Partial pension, please contact the Fund office. Can I Receive More Than One Pension From The Plan? No. Under this Plan, you are entitled to receive only one type of pension.However,there are two exceptions to this rule. The first is a disability pensioner who recovers and returns to work.In this case, the Disability pension will cease and he or she may be eligible to receive another type of pension from the Plan. The second is a pensioner who is the surviving spouse or beneficiary of a deceased pensioner/vested member. In this case the pensioner may collect both pensions at the same time. Can I Assign My Benefits? No. The Plan prohibits any form of assignment, sale, transfer or attachment of your pension benefit as required by law. Your pension benefits cannot be used as security for a loan or mortgage. This clause is included in order to protect your pension benefit for its intended use - your retirement. Can My Benefits Be Garnished? There are limitations on the ability to garnish pension benefits. The validity of any garnishment order will be determined on a case by case basis. How Will I Know What My Benefits Are Under This Plan? All of the records of the Plan are kept in such a manner that each member's records will be updated regularly. Each year that you are an active Member of the Plan the Fund office will send you a statement. The statement shows details of contributions received for the year, the benefits accumulated for you under the Plan, as well as your status in the Plan. To ensure that the records are accurate and up-to-date, you should keep the Fund office advised of any changes in your marital status and your mailing address. Will The Benefits Provided Under This Plan Affect My Canada Or Quebec Pension Plan Benefits In Any Way? No. The benefits provided under this Plan are in addition to any CPP/QPP benefits for which you may be eligible. What If I Get A Divorce, Annulment Or Separation? Your ex-spouse’s entitlement to any portion of a benefit is determined with reference to the court documents or other agreements as well as the applicable law. Any court documents or agreements pertaining to a division of pension benefits should be filed immediately with the Fund office. If your ex-spouse is entitled to any portion of your benefit in accordance with the applicable provincial law, the benefit to which you, your current spouse or beneficiary is entitled to will be adjusted accordingly. SUMMARY This booklet describes the Plan in effect on July 1, 2004. While this booklet tries to summarize the official Rules and Regulations of the Plan, it is only a summary. In the event of any differences in interpretation between this booklet and the official Rules and Regulations and the Trust Agreement, the official Rules and Regulations of the Plan and the Trust Agreement will apply. If you have any questions regarding the Plan or about your pension, please feel free to write,fax or email the Fund office. If you have a change of address, please complete the enclosed change of address form located at the back of this booklet and submit it to the Fund office. We hope that this summary has been helpful and informative.
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