The United Church of Canada provides a Defined Benefit Pension Plan for all employees who work more than 14 hours a week.
Visit CHURCHx for a recording of the 90 minute Pension Information Seminar to learn about how the plan works, what it costs, what it provides, and how to apply for your pension when you're ready. In this program, we will describe:
To view the recording and get all the handouts:
Click here to view a recording of this seminar on YouTube.
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The accrual rate is the rate at which you earn your pension. In 2023, you will earn your pension at the rate of 1.85% of your pensionable earnings.
You earn a piece of pension every year that you work and contribute to the plan―like building blocks.
For example, let’s assume that a member’s pensionable earnings stayed constant at $60,000 every year (for easy figuring). From 2019 to 2024, that member would earn:
| Year | Accrual Rate | Formula | Pension Credit Earned |
| 2019 | 1.4% | 1.4% of $60,000 | $ 840 |
| 2020 | 1.85% | 1.85% of $60,000 | $ 1,110 |
| 2021 | 1.625% | 1.625% of $60,000 | $ 975 |
| 2022 | 1.85% | 1.85% of $60,000 | $ 1,110 |
| 2023 | 1.85% | 1.85% of $60,000 | $ 1,110 |
| 2024 | 1.4% | 1.4% of $60,000 | $ 840 |
At the end of your career, the annual pension amounts earned each year (pension credits) will add up to the total annual pension you will receive every year for the rest of your life. So, the higher amount earned in 2023 will continue to benefit you for the rest of your retired life.
There is no automatic indexing or increases in our pension plan. Each year, the Pension Board and Pension Plan Advisory Committee assess the resources available and determine whether there are surplus funds that can be used to increase benefits.
The Benefits Centre team is pleased to announce that we have made 17 lump sum payments and 4,768 regular pension payments following the transition from RBC Investor and Treasury Services to LifeWorks in May. All thanks to LifeWorks' Ariel payroll system that streamlined the payroll run and generated one payroll run instead of two for monthly pensions and lump sums. Check out more details below!
Annual member statements for the 2021 plan year will be issued to active, deferred and retired members of the Pension Plan at the end of June 2022.
Remember that, if you have a spouse, they would automatically receive any pre-retirement death benefit as per pension legislation. However, you should also designate a beneficiary in case your spouse pre-deceases you.
If you need to declare a spouse, or designate a beneficiary, please scan the QR code to fill out the secure form that will be submitted directly to the Benefits Centre. For security purposes, once you enter your name and email address, a verification code will be emailed to you. In order to proceed to the form, you will have to enter that code when prompted. If you have not received your statement and are paid through ADP, please contact them directly to ensure the address on file is correct.
If you have not begun receiving your pension, the statement will contain a box that looks something like this:
| Your Pension | Your Future |
| FOR EVERY YEAR YOU PARTICIPATE IN THE PENSION PLAN YOU INCREASE YOUR RETIREMENT INCOME | $XX,XXX
THE AMOUNT YOU HAVE EARNED ALREADY |
| IN 2021, YOU EARNED
$X,XXX THIS IS ADDED TO THE ANNUAL PENSION YOU’VE ALREADY EARNED |
+ XX,XXX
YOUR PROJECTED ANNUAL PENSION TO AGE 65 |
| + 15,043
MAXIMUM C/QPP BENEFITS |
|
| + 7,784
MAXIMUM OAS BENEFITS |
|
| ___________________________________ | _______________________________________ |
| = $XX,XXX
YOUR TOTAL ANNUAL PENSION EARNED TO DECEMBER 31, 2021 |
= $XX,XXX
YOUR ESTIMATED ANNUAL RETIREMENT INCOME (excluding other employer pensions or personal savings) |
THE AMOUNT YOU HAVE EARNED ALREADY - is calculated based on your pensionable earnings and years of credited service.
YOUR PROJECTED ANNUAL PENSION TO AGE 65 – is an estimate based on the assumption that you continue to work in the same job category until you reach age 65. If you stop working before that, or if your pensionable earnings change, this amount will also change.
MAXIMUM C/QPP BENEFITS – The amount shown as an example on your pension statement is the maximum amount payable under the Canada Pension Plan. Not all Canadians receive the maximum possible payout from the Canada Pension Plan. Please note that the average annual amount of CPP paid to new recipients in 2022 was $8,433.
In order to determine your personal benefit under the Canada Pension Plan, you can request a Personal Access Code (PAC) You can use this code to register for My Service Canada Account, which will provide access to your personal record of contributions and benefits earned under the Canada Pension Plan.
MAXIMUM OAS BENEFITS – Old Age Security is a pension you can receive if you are 65 years of age or older and have lived in Canada for at least 10 years.
When planning for retirement, all of these sources of income, as well as your personal savings and any pension from previous employers should be considered. We recommend that you consult with a financial planner to help with the financial aspects of your retirement planning.
The first letter from the Benefits Centre informing pensioners about the change to the processing of pension payments - from RBC Investor and Treasury Services to LifeWorks.
The second mailing in June was divided into three letters depending on where you are currently residing:
The second communication from the Benefits Centre was mailed the week of June 15, with more information on T4As for the 2022 year, and about the Web portal - which will be available to all in October 2023 but will be optional. Just a reminder, there is nothing for you, as a pensioner, to do on your end.
Three versions of the letter were mailed - depending on your current location - and they are all posted on the Retirement page, under Communications. If you have not received this communication by the end of the month, please e-mail pension@united-church.ca or phone the Benefits Centre at 1-855-647-8222 to ensure they have the correct address on file.
First Mailing - First Letter
Second Mailing -
An initial communication from the Benefits Centre was mailed the week of May 23, informing pensioners of the upcoming change to how pension payments are processed. One important thing to note is that there is nothing for you, as a pensioner, to do on your end. More information about the change will be mailed in June providing contact details.
A copy of the letter is posted on the Retirement page, under Communications. If you have not received this communication by the end of the month, please e-mail pension@united-church.ca or phone the Benefits Centre at 1-855-647-8222 to ensure they have the correct address on file.
Derek Hurst, Pension Fund Manager, was interviewed by Benefits Canada about The United Church of Canada Pension Plan.
“Our governance structure is quite robust. I report to an 11-person investment committee which reports to a 11-person pension board,” says Hurst, who’s been overseeing the decisions of the $1.6 billion defined benefit plan since 2015. “Additionally, there’s an advisory committee with eight volunteers. The calibre of these volunteers is very high — it’s incredible to me that we get people so interested in helping the plan.”
Read the full article by Gideon Scanlon here.
At its meeting on April 30, 2022, the Executive of the General Council approved the appointment of Anne Soh, FSA, FCIA as the next chair of the Pension Board. Anne served on the Pension Plan Advisory Committee since 2011, assuming the chair from November 2013 to December 2020. Anne was then appointed to the Pension Board.
Anne Soh is Vice President and Plan Actuary at the Ontario Municipal Employees Retirement System (OMERS). An executive with over 30 years of experience in the pension and benefits industry, Anne advises the OMERS boards of directors on plan funding and sustainability matters, and oversees the in-house actuarial department. Anne also serves on the Board of Directors and the Finance and Audit Committee of Canada’s National Ballet School. Anne is a Fellow of the Canadian Institute of Actuaries and has an Hons. Bachelor of Science degree from the University of Western Ontario. She is also a graduate of the ICD – Rotman Director Education Program.
Anne’s term as Pension Board chair will begin after the June 2022 meeting of the Board where Marcus Robertson, FSA, FCIA will complete his third and final term as chair. The General Council Executive wishes to thank Marcus for his nine years of diligent leadership.
(Toronto) The Pension Plan of The United Church of Canada filed a shareholder proposal with Constellation Software urging the company to improve their DEI (diversity, equity and inclusion) practices. The proposal requested the preparation of a report on the company’s plans to identify, address, mitigate, and dismantle racial disparities within its workforce. Despite the Board of Constellation Software recommending that shareholders vote against the resolution, shareholders approved it!
The United Church of Canada Pension Plan is very proud of this outcome. In concert with SHARE, we will follow up with the company in the coming months to ensure it issues a report and to review its content and goals. Marcus Robertson, Chair of the Pension Board commented, “This is great news, and demonstrates the effectiveness of ongoing engagement on diversity and inclusion issues with invested companies.”
SHARE commented, “We are pleased that a majority of Constellation Software Inc. shareholders have voted to adopt our shareholder proposal, filed on behalf of The United Church of Canada Pension Plan to undertake a thorough review of racial equity at the company and report publicly to investors on findings. This is a crucial step for the company, which has previously taken very limited measures to address diversity, equity and inclusion. The majority vote from shareholders sends a strong signal to Canadian issuers about the growing expectations of institutional investors on racial equity. The company announced that the proposal had passed during the AGM.”
For information, Constellation Software is a leading provider of software and services to a select group of public and private sector markets. They acquire, manage and build industry specific software businesses which provide specialized, mission-critical software solution. The Pension Plan’s current investment in the company is $2 million, and market value of the company is approximately $42 billion.
SHARE's full press release can be found here.
