Hi all,
Just wondering about a situation I'm in. With my previous employer I was in a union and I put money into a pension. When I left the company I was there long enough to be "vested" and upon leaving I cashed out my pension but they would only give me 33% of what was there and the other 67% was to be held for 5 years.
The 5 years is now up and when I emailed to find out about the holdback amount this is the response I got from them.
Regarding your Holdback, we are waiting on further direction and guidance from the Trustees, Consultants and Plan Actuary and was instructed that all Holdback pay-outs are on hold until that direction is received. There is no estimate as to how long this process will take. The Members will be notified as soon as further information is available.
So I'm just wondering if anyone has been in this situation before and knows what options I have? From what I've heard there's been other people in this same situation and even after another year on top of waiting the 5 years they are still waiting to be paid out.
Thanks in advance,
Pension holdback amount that company won't release to me
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Re: Pension holdback amount that company won't release to me
Defined benefit pension plans in financial stress are allowed to delay commutation payments to departing members. The situation you describe seems especially dire and I'll guess that you were in a multi-employer pension plan. Such plans are common in industries like construction where union tradesmen and labourers are hired by many companies on a project basis. Unlike single-employer DB plans, employers are not required to automatically cover funding shortfalls. Rather, that's up to negotiation between the employers and union(s).
Contact the plan's regulator to clarify the plan's funded status and your entitlement. The regulator might be provincial or federal but was identified on the annual pension statements you were sent. If you didn't keep those statements and can't find the regulator's name in other correspondence, ask your union or previous employer. Here are links to the various Canadian pension regulators.
Contact the plan's regulator to clarify the plan's funded status and your entitlement. The regulator might be provincial or federal but was identified on the annual pension statements you were sent. If you didn't keep those statements and can't find the regulator's name in other correspondence, ask your union or previous employer. Here are links to the various Canadian pension regulators.
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- Veteran Contributor
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Re: Pension holdback amount that company won't release to me
Sounds like a seriously underfunded pension and they are adverse to allowing you to get out with all your money and then have the remaining members bear all the cost of the shortfall.
Just my opinion, of course and if I am right I doubt you can do much about it and I doubt it will be a quick resolution. Good luck with it though
Just my opinion, of course and if I am right I doubt you can do much about it and I doubt it will be a quick resolution. Good luck with it though
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Re: Pension holdback amount that company won't release to me
ZeroCool....I am most interested in your post and what Union you were with. My SIL has the same situation, although the 5 years are up for the release of the funds from his union pension very soon I don't think he has checked to see when the funds would be released. He received more than 50% originally. He was with the Plumbers/Steamfitters Union/Hamilton Ont.
Re: Pension holdback amount that company won't release to me
Hi, sorry for the late reply. This is a notice I got from the pension company back in 2015. I was told it would be paid out after 5 years or once the pension transfer ration is at 1.00%
I was told in October that the cheque would be mailed out then I waited a month and was told the trustees haven't made a decision yet.
I was told in October that the cheque would be mailed out then I waited a month and was told the trustees haven't made a decision yet.
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Re: Pension holdback amount that company won't release to me
Sorry, not sure there is much anyone can add to this. Until the pension is in better shape or the trustees make a decision to payout more, I am not sure there is much you can do.
Quite frankly, depending on the province and the pension rules, you may never see this money.
If the pension does not do well and there is no employer who has to fully fund a pension shortfall, I cannot see the pension giving a member who has quit, an advantage over foljs who have stayed in the plan.
Pensions can and do get cut ie Nortel.
Quite frankly, depending on the province and the pension rules, you may never see this money.
If the pension does not do well and there is no employer who has to fully fund a pension shortfall, I cannot see the pension giving a member who has quit, an advantage over foljs who have stayed in the plan.
Pensions can and do get cut ie Nortel.