Many of the pension terms used throughout this section are explained below:
Common-Law Partner
Under The Pension Benefits Act and Regulations of Manitoba a common-law partner of a member of a pension plan or former member of a pension plan means:
Common-Law Relationship
Means the relationship between two people who are common-law partners.
Commuted Value
The present day dollar value of your lifetime monthly pension converted into a lump-sum amount. The commuted value includes employer and employee contributions. This benefit is locked-in to eventually be used for retirement purposes, unless your pension benefit is considered a small benefit under The Pension Benefits Act of Manitoba. Please refer to the Small Benefit definition for further information.
Deferred Pension
A member who terminates Plan membership, for a reason other than retirement or death, is entitled to a deferred monthly pension equal to the amount determined in accordance with the Plan Text.
Early Retirement
When a member retires prior to age 65 (the Plan’s normal retirement date) they must be at least 55 years of age with a minimum to years of service, or must attain their Magic 80 date to be eligible for early retirement.
Excess Contributions
Excess contributions are contributions made in excess of 50% of the commuted value of your pension benefit. You are entitled to a refund of any excess contributions, plus interest.
Excess contributions may be transferred to an RRSP, or received as a lump-sum cash refund. Excess contributions can also be used to increase a member’s pension at retirement.
Highest Average Earnings
The average of the member’s highest five years of annualized earnings from the last 11 years immediately prior to termination, retirement, or death. If the member has not completed five years of service, the actual years of annualized earnings available will be used to determine the average earnings.
Locked-in Pension Benefits
Pension benefits that cannot be withdrawn as a lump-sum. Only under the following circumstances may a member withdraw locked-in funds:
Magic 80 Date
The date at which a member’s age added to their years of employment service equals 80. Members are entitled to an unreduced pension benefit when they attain their Magic 80 date.
Participating Employer
A healthcare facility or related organization that has signed a Participation Agreement and participates in the Healthcare Employees' Pension Plan.
Pension Benefit Credits
The value, at a particular time, of the pension benefits and any other benefits provided under the Plan for which an employee has become entitled, as of that time.
Signatory Employers and Unions, or Signatory Boards (also referred to as the Settlors)
The original employers and union groups that merged together to create the Plan; the parties to the Trust Agreement.
Small Benefit
Under The Pension Benefits Act of Manitoba, a member’s pension benefit is considered a small benefit if:
Note: The YMPE amount for the year in which the member’s termination, retirement, or death occurs is used in the calculation.
Small benefits are paid to members as a taxable lump-sum payment.
Spouse
Under The Pension Benefits Act and Regulations of Manitoba, the person who is married to the plan member or former member.
Total and Permanent Disability
A physical or mental impairment which prevents a member from engaging in any employment for which they are reasonably suited by virtue of their education, training or experience; and for which there is no reasonable expectation that the member will recover from the disability. The physical or mental impairment must be certified in writing, by a qualified medical doctor, acceptable to the Trustees, and licensed to practice in Canada or where the member resides.
Year’s Maximum Pensionable Earnings (YMPE)
The maximum annual earnings on which Canada Pension Plan contributions and benefits are calculated. The YMPE is set annually by the federal government to reflect the average industrial wage in Canada.
Voluntary Contributions
Voluntary contributions are optional contributions that may be made to a pension plan in addition to regular required pension contributions. These contributions would have interest applied and the amount would be used to provide a separate benefit in addition to the member’s monthly pension. HEPP has no provision to allow members to make these additional voluntary contributions.