Pension Plan

Your pension plan is a defined benefit (DB) pension plan whose primary purpose is to provide you with regular and secure monthly pension income after your retirement for the remainder of your lifetime. The pension you will receive is calculated based on a formula that considers your entire work history as a unionized ironworker. In certain circumstances, the pension fund may also provide bridge benefits prior to age 65 as well as benefits in the event of your disability or death. The monthly pension you will receive from this pension plan is in addition to any assistance from Canada Pension Plan (CPP) or Old Age Security (OAS).

Your pension is determined by your number of hours in covered employment and the contribution rate at which your employer remits contributions on your behalf. Starting from January 1^st, 2025, the benefit formula was simplified and you now earn an additional $9 of monthly lifetime pension for every $1,000 of contributions received (0.9% of contributions) after 2024. For example, if you work 1,000 hours under the industrial structural agreement in 2025 at a $7.50 pension contribution rate, $7,500 will be remitted to the pension plan on your behalf. That $7,500 in contributions will result in an additional $67.50 of monthly pension being credited to you ($7,500 x 0.9% = $67.50).  If you double the hours worked to 2,000, the contributions double and so does the pension earned ($15,000 x 0.9% = $135.00). For members working under a commercial agreement at a lower pension contribution rate, you still earn $9 of pension for every $1,000 of contributions, but you will earn a little less pension for every hour worked due to the lower contribution rate (1,000 x $6.00 x 0.9% = $54.00).  If you retire on or after the plan’s normal retirement date (age 60), the full amount of your pension is payable for the rest of your life. For retirements prior to age 60, a reduction may apply to account for the additional payments you will receive over your lifetime.