By JACK WASHBURN
Director of I.W.A. Pensions

At the beginning of 1978, when the last
details of the 1977 pension settlement were
ironed out by the Trustees, the Lumber
Worker published a table of estimated
monthly benefits showing by age after 60
and years of credited service what members
who retire in 1980 might expect to receive
under the various plan options.

This was well received and it is now time
to repeat it, updated to take account of the
major increases resulting from the last
negotiations.

There are some important things to
remember about this table. First, the figures
in the boxes are estimates, based on the
regulations of the Plan having been met and
they are faintly understated to make some
allowance for minor differences in hours
worked, month of birth, etc. Better a man
should get a slightly higher pension than he
thought, rather than a lower one.

Second, for younger members, the figures
shown don’t have much meaning. A man of

40, say, can look down the road (under
present Plan regulations, which may
change in the future) for 20 years until he
reaches 60, the earliest age at which he can
retire. Just think what has happened to
wages over the last 20 years, a period when
not all years were highly inflationary, and
what will happen over the next 20 years,
particularly if the current rate of inflation
continues, as may be the case.

Pensions must bear a relationship to
wages, otherwise income after retirement
will be out of balance with income immedi-
ately. prior. In our negotiations with
industry on pensions this balance must be
maintained, or even improved. That’s why
the numbers in the boxes must continue to
grow over the years, as they already have
several times since the Plan began. Also we
must periodically upgrade pensions in
course of payment in order at least to take
care of inflation. We have far yet to go in all
aspects.

The various options listed are quite easy
to understand. They all have approximately

TABLE OF ESTIMATED MONTHLY BENEFITS
PLAN MEMBER’S AGE ON RETIREMENT: 60 to 61

ENSION PLAt

the same actuarial equivalent value. It
means that if you take the collective
experience of a group of 100,000 people, as
an actuary does, they allcostthePlanabout ¥
the same.

The Normal Form (Life with Five Years
Certain) means that your pension is paid to
you as long as you live but, if you should die
during the first five years your pension
continues to your beneficiary until the first
five years runs out. It is called “normal”
because it is the option assumed by the Plan
for you if you do not pick another option. Itis
also the basic option, from which the
pension levels of the other options are
calculated. It is not “normal” in any other
sense. Most members will wish to provide
better protection than this to their spouse.

Option No. 2 (Life with Ten Years Certain)
means that the guarantee of your pension
being paid to your beneficiary if you die is
extended to the first 10 years and Option No.
2 (Life with Fifteen Years Certain) extends
the guarantee to the first 15 years. It’s worth
remembering that, if you are 65 years old,

TABLE OF ESTIMATED
PLAN MEMBER'S AGE 0}

OPTIONS Years of Employment in the Forest Industry OPTIONS
10 yrs 12 yrs 15 yrs 17 yrs 20 yrs 25yrs 30 yrs 35 yrs 40 yrs 10 yrs
Normal Life with Five Years Certain $123 $147 $184 $209 $246 $307 $369 $430 $492 Normal Life with Five Years Certain $129
Option #1 _ Life with Ten Years Certain 118 141 #177 4201 236 295 355 413 473 Option #1 Life with Ten Years Certain 123
Option #2 Life with Fifteen Years Certain 112 134 167 #=+190 224 279 336 # £391 448 Option #2 Life with Fifteen Years Certain 116.
———— eee ee
Option #3 _— Straight Life 124 149 186 212 249 311 374 436 499 Option #3 Straight Life 131
a
Option #4.c Joint and Survivor Income Option #4 c Joint and Survivor Income
Payable for Life, but reducing to Payable for Life, but reducing to +
three-quarters after your death. three-quarters after your death.
—pension payable to you 104 124 156 177 «4208 260 313 364 #« «417 —pension payable to you 108
—benefit payable to your beneficiary 78 93) Nie 132) S156 s195 e234 eo CemmoilS —benefit payable to your beneficiary 81
Option #4 g Payable for Life, but reducing to Option #4 g Payable for Life, but reducing to
three-quarters after either death. three-quarters after either death.
—pension payable to you 105 126 158 $4179 211 «+264 317 «370 423 —pension payable to you 110
—benefit payable to the survivor 79 94 118 134 158 198 238 277 317 —benefit payable to the survivor 82
Option #5 —_ Level Income Option #5 _—_ Level Income
—payable to age 65 287 343 408 4383 470 531 593 654 716 —payable to age 65 357
—payable after age 65 Nil’ Nil 16 41 78 189 201 262 324 —payable after age 65 Nil
TABLE OF ESTIMATED MONTHLY BENEFITS TABLE OF ESTIMATED
PLAN MEMBER'S AGE ON RETIREMENT: 63 to 64 PLAN MEMBER'S AGE OI
OPTIONS Years of Employment in the Forest Industry OPTIONS
10 yrs 12yrs 15 yrs 17 yrs 20yrs 25 yrs 30 yrs 35 yrs 40 yrs 10 yrs
Normal Life with Five Years Certain $141 $169 $211 $239 $282 $352 $423 $493 $564 Normal Life with Five Years Certain $145
MM an UC
Option #1 _—_ Life with Ten Years Certain 133 160 199 226 267 333 400 467 534 Option #1 Life with Ten Years Certain 136
a
Option #2 _Life with Fifteen Years Certain 124 148 186 210 248 310 372 434 497 Option #2 Life with Fifteen Years Certain 126
——_—_—_ eee
Option #3 _— Straight Life 143. #172 215 243 287 359 481 503 # £575 Option #3 _— Straight Life 146
—_—_———— eS EEE eee
Option #4 ¢ Joint and Survivor Income Option #4 ¢ Joint and Survivor Income
Feyable ey ae but peat: Payable for Life, but reducing to
ree-quarters after your death. three-quarters after your death.
—pension payable to you be 117 140 175 198 234 293 352 410 469 aan payable c you 19
—benefit payable to your beneficiary 87 105 131 148 175 219 264 307 351 —benefit payable to your beneficiary 9
OpHon = g pele us ee ene AS Option #4 g Payable for Life, but reducing to
ree-quarters after either death. three-quarte F eath.
—pension payable to you 1199" 143) 178 (202 5 *2385 1298 SSBee an asmarie =rean payane ee ‘ ri
—benefit payable to the survivor 8959107 133-151 1178223" e268 aia ees, —benefit payable to the survivor a
Option #5 _— Level Income Option #5 —_Level Inco |
—payable to age 65 454 482 524 552 595 665 736 806 877 —payable ne 65 49F
—payable after age 65 62 90 132 160 203 273 344 414 485 —Ppayable after age 65 10
Notes: Notes:

1. The amounts shown above are APPROXIMATE and based on the assumption you have accumulated maximum service credits

since the Plan began. Years of employment prior to a two year absence from the industry may not be counted. ~
2. Lesser amounts are available if you have fewer than ten years of credited service. :

3. The estimated Joint and Survivor Income option assumes that your beneficiary is three years younger than you. If your bene-
ficiary is more than three years younger than you, the amounts quoted under Option #4 will be less; conversely, if your bene-
ficiary is older than you, the amounts payable will be greater. There is also provision under this Option which enables you to elect’

a pension reducing to two-thirds, one-half, or continuing in full. : ;
4, The Level Income option may be elected together with the normal form of pension or any one of the other options. .

6/Lumber Worker/March, 1980
a eee

1. The amounts shown above are APPROXIMATE and based®
A nes the Plan began. Years of employment prior to 4 wae
3. The seamounts are available if you have fewer than ten
“Ae tp lab Joint and Survivor Income option assumes
ficiany 7 nore, than three years younger than you, the
a a is olderthan you, the amounts payable will be greater.
ns Pe palon reducing to two-thirds, one-half, or continuing
- evel Income option may be elected together with