Good news! As announced in a recent letter from Pension Board Chair, Marcus Robertson, pension plan members will receive a pension increase effective January 1, 2022.
Pensioners and Deferred Members
Current pensioners and deferred members will receive a 4 percent* increase to their pension amount effective January 1, 2022.
* The Income Tax Act and regulations limit pension increases to the cumulative growth in Consumer Price Index since the pension commenced. For this reason, recently retired pensioners and deferred members who terminated employment recently will see a lesser increase.
Active Members
For active members, the accrual rate will increase to 1.85 percent in 2022 from the base rate of 1.4 percent. In 2023 the accrual rate is scheduled to return to 1.4 percent.
What Does “Accrual Rate” Mean?
The accrual rate is the rate at which you earn your pension. In 2019, you earn your pension at the rate of 1.4 percent of your pensionable earnings.
How Does This Work?
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 2023, 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 | 1.4% | 1.4% of $60,000 |
$ 840 |
At the end of your career, the annual pension amounts earned each year 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 2022 will continue to benefit you for the rest of your retired life.
What about Future Increases?
There will be no automatic indexing or increase going forward. The Pension Board and Pension Plan Advisory Committee annually assess the resources available and determine whether there are surplus funds that can be used to increase benefits.
The United Church of Canada Pension Plan joined 34 other institutional investors to sign a Canadian Investor Statement on Climate Change. Collectively, these investors manage more than $5.2 trillion in assets.
Coordinated by the Responsible Investment Association (RIA), the Statement also makes clear the actions major Canadian investors will take to advance the global pursuit of net zero ahead of the most important climate gathering in history – COP26. This includes disclosing their financed emissions and setting an expectation that their investees will establish emissions targets and report on their progress.
Marcus Robertson, Chair of the Pension Board, said, “The Pension Plan has endorsed the Canadian Investor Statement on Climate Change as part of the Plan’s journey to net zero. The Plan has made strides through its engagement efforts, but this significant commitment to net zero by 2050 will require changes to the Plan’s investment strategy, as long-term goals are established, portfolios are adjusted and progress towards those goals is measured.”
RIA worked closely with the Reconciliation and Responsible Investment Initiative (RRII) in the development of the Statement to ensure Indigenous perspectives are incorporated into the Statement. “Despite Indigenous Peoples often being the first and most affected by the climate crisis, Indigenous perspectives and voices are often left out of investors’ decision-making on climate action,” says Mark Sevestre, Founding Member of NATOA. “This raises the stakes of the transition to a low carbon economy for Indigenous Peoples. For the transition to be just in Canada, Indigenous Peoples’ rights and perspectives need to be centred and prioritized.”
Active Member Accrual Rate set at 1.625% for 2021
The Pension Board is pleased to announce that the accrual rate for active plan members will be 1.625% in 2021. There will be no change to contribution rates. The accrual rate, which was set to return to 1.4% in 2021, will return to 1.4% in 2022.
Pension Increase to Retired and Deferred Plan Members Effective January 1, 2021
The Pension Board is pleased to announce that current pensioners. survivors and deferred members will receive a 2%* increase to their monthly pension benefit effective January 1, 2021. If you are receiving a pension, the increase will be added to your April 2021 pension payment, retroactive to January 1, 2021. If you are a deferred member, (that is, you terminated employment but left your entitlement in the Plan), the increase will be calculated and shown on your 2021 pension statement, which you will receive in June 2022.
* The Income Tax Act and regulations limit pension increases to the cumulative growth in CPI since the pension commenced. For this reason, recently retired pensioners and deferred members who terminated employment recently will see a lesser increase.
These improvements are possible because of adequate funding levels at the end of 2020, according to requirements set out in the Funding Policy.
Pension Information Seminar
Join us for the next Pension Information Seminar on March 9, 2021. Learn how your pension plan works, other ways to save for retirement and how to apply for your pension. Click here To register.
When we can combine faster service with an environmental upside, it’s a no-brainer. With that in mind, Green Shield Canada (GSC) will be moving to a fully digital experience for claim payments later this year.
As of December 2020, in order to submit claims electronically on GSC’s Online Services site, you must have registered for direct deposit for your claim payments. Cheque payments will no longer be issued for claims submitted online. With this “greener,” contactless approach, you’ll receive your money from GSC faster, with payments conveniently deposited directly into your bank account. And you can rest assured that your personal banking information is totally secure.
To sign up for direct deposit, log into your Online Services account and follow these four steps:
Or click here to watch the video on how to register for direct deposit with GSC
It’s really quick. And it’s very easy. So, don’t wait! Sign up today.
