THE WESTERN CANADIAN LUMBER WORKER |

CANADA’S

PLAN

Contained in the

following summary are the important

details of the new Canada Pension Plan as provided by the
actuarial firm of William M. Mercer Ltd.

EFFECTIVE DATE—

Contributions will com-
mence January 1, 1966. Re-
tirement benefits will com-
mence to be paid from Jan-
uary 1, 1967. Other benefits
will not be payable until later
dates.

APPLICATION—

Virtually all employed per-
sons in Canada ages 18 to 69
inclusive who earn over $600
per year will be required to
contribute. Self-employed
persons ages 18 to 69 inclu-
sive will be required to con-
tribute if their earnings (as
calculated for income tax pur-
poses) exceed $800 per year.

CONTRIBUTIONS—
Contributions are based on
earnings over $600 but not
over $5,000 per year for both
employed and self-employed
persons. An employee must
pay 1.8% of such earnings
and his employer must make
an equal contribution. A self-
employed person must pay
3.6% of such earnings. Thus
the maximum annual contri-
bution will initially be $79.20
from an employee, matched
by his employer. For a self-
employed person earning
$5,000 or more, the annual
contribution will be $158.40.

RETIREMENT BENEFITS—

On actual retirement from
employment (or self-employ-
ment) at age 65 to 69 inclu-
sive (or automatically at age
70, whether retired or not)
the Plan will pay a pension
which is based on the rate of
earnings on which the partici-
pant had contributed. The
basic earnings-related pension
is 25% of the average earn-
ings on which contributions
were made. The full benefit
will not be paid until after 10
years of contribution have
been made. At that time, the
pension, based on average
earnings of $300 per month
would be $75 per month, If
earnings were $350, the pen-
sion would be $87.50. If earn-
ings were $400, the pension
would be $100. The initial
maximum pension (25% of
$5,000 per year) would be
$104.17 per month. Retire-
ment pensions are payable at
age 68 in 1967, age 67 in 1968,
age 66 in 1969 and age 65 in
and after 1970.

EARNINGS TEST—

At ages 65 to 69 inclusive,
the retirement benefit would
be paid in a reduced amount
if the recipient earns over
$900 per year from employ-
ment or self-employment. For
example, if a participant con-
tributes for 10 years at aver-
age earnings of $4,000 and
then reaches age 65, and re-
tires, his pension would be
25% of $4,000, or $1,000 per
year. If he subsequently be-
came employed and earned
over $900 per year, his pen-
sion would reduce. If he earn-
ed $1,500, his pension would

reduce by $300 ($1 for each
$2 earned over $900). For
each $1 he earned over $1,500
his pension would reduce by
$1. If he earned $2,200 (or
$700 in excess of $1,500), the
total pension would disap-
pear. At 70, his pension would
revert to $1,000 without re-
gard for other earnings. In
applying the earnings test,
other pensions, interest and
dividends do not count as
earnings.

DISABILITY BENEFITS—

Early in 1970, subject to a
minimum period of contribu-
tion, disability pensions can
become payable. A contribut-
or must be suffering from a
disability sufficently severe
to prevent him from regularly
pursuing any substantially
gainful occupation. The dis-
ability pension would be $25
plus 75% of the retirement
pension accumulated by the
contributor plus $25 for each
dependent child up to 4 plus
$12.50 for each dependent
child in excess of 4. A de-
pendent child must be un-
married and be under age 18
(age 25 if attending school or
university) .

DEATH BENEFITS—

In 1968, subject to a mini-
mum period of contribution,
widows’ pensions, disabled
widowers’ pensions, orphans’
benefits and lump sum death
benefits can become payable.
If a contributor dies and
leaves a widow who is at least
age 35 or has dependent chil-
dren or is disabled, the basic
widow’s pension would be $25
plus 3742% of the retirement
pension accumulated by the
contributor. If the widow is
under 45, has no dependent
children and is not disabled,
this pension will be reduced
by 1/120 for each month that
she is younger than 45. (It
becomes zero if she is 35 or
under).

If the widow is over age 65
when widowed or reaches age
65 while in receipt of a wid-
ow’s pension, her pension will
be 60% of the retirement pen-
sion accumulated by the de-
ceased contributor.

For purposes of the Can-
ada Pension Plan, an’ “or-
phan” is a dependent child of
a contributor. Thus if a con-
tributor dies and leaves de-
pendent children, they are
classed as “orphans” even
though the other parent is
still alive and a benefit of $25
per month is paid for each of
the first 4 orphans and of
$12.50 per month for each or-

phan in excess of 4.

If a female contributor dies
and leaves a disabled widow-
er, a pension, calculated the
same way as a widow’s pen-
sion, is paid.

A lump sum death benefit
equal to 6 times the accumu-

WE HAVE TH’ MOST UP TO DATE MILL .. . EVERYTHINGS PUSH
BUTTON ... EXCEPTING ONE THING!

lated monthly retirement
pension (maximum payment
$500) is also payable on the
death of a contributor.

All these death benefits can
apply no earlier than 1968.

ESCALATIONS—

One of the most signifiant
features of the Canada Pen-
sion Plan is that the contri-
bution base and the benefits
are geared very directly to
increases in the cost of living
as reflected in the Consumer
Price Index and in general
levels of salaries and wages.
In this summary, initial
amounts have been used. But
the contribution bracket
(earnings from $600 to $5,-
000), the maximum pension
of $104.17, the flat $25 ele-
ments in disability, widows’
and orphans’ pensions, the
maximum death benefit and
other pensions payable under
the Canada Pension Plan will
all increase, for pensions in
payment as well as pensions
being granted, as the Con-
sumer Price Index and gen-
eral salary and wage levels
increase.

OLD AGE SECURITY—

The Canada Pension Plan
benefits are separate from
and in addition to the univer-
sal Old Age Security Pension
which is currently $75 per
month. The Old Age Security
Pension is now payable at
age 70 but this age will re-
duce one year at a time until
the pension will be payable
at 65 in and after 1970.

PRIVATE PLAN
BENEFITS—

Neither the Canada Pen-
sion Plan nor the Old Age
Security Act have any direct
control over private pension
plan benefits. However, the
level of pension contemplat-
ed by the combination of
Canada Pension Plan and
Old Age Security benefits
will cause employers and em-
ployees alike to review their
private plans to determine
how they should be adjusted
so that the total cost of pen-
sions does not become oner-
ous to either the employer
or his employees.

LOCAL 1-118, IWA

IWA DIRECTORY

REGIONAL COUNCIL OFFICERS
J. A; Moore: . 2 eee
J. MacKenzie
J Olstee=
E. W. Haw _..
Fred Fieber
ADDRESS
2859 Commercial Drive, Vancouver 12, B.C.
LOCAL 1-71, IWA
Ben Thompson
ADDRESS
Rm. 309 - 119 W. Pender, Vancouver 3, B.C.
LOCAL 1-80, IWA
E. Linder
ADDRESS
Box 430, Duncan, B.C.
LOCAL 1-85, IWA
M. J. Corbeil
ADDRESS
103 - 4th Avenue S., Port Alberni, B.C.

seswvwvsea----. President
Ist Vice-President
2nd Vice-President
.... 3rd Vice-President
Secretary-Treasurer

Financial Secretary
Financial Secretary

Financial Secretary

E. W. Haw
ADDRESS

715 Johnson Street, Victoria, B.C.
LOCAL 1-184, IWA

S. F.2 Amos) 23) 2 See eee _ Financial Secretary
ADDRESS:

206 Canada Building, Prince Albert, Sask.
LOCAL 1-206, IWA

T...Spriak 223 2 eee ee Financial Secretary
ADDRESS

Box 643, Fort Macleod, Alberta (J. Smith)

Box 385, Blairmore, Alberta (T. Sprlak)
LOCAL 1-207, IWA

A. Christensen =e
ADDRESS

10137 - 97th Street, Edmonton, Alberta
LOCAL 1-217, IWA

S. M. Hodgson __
ADDRESS

2859 Commercial Drive, Vancouver 12, B.C.
LOCAL 1-288, IWA

R. ©. Gran ns ae ee Financial Secretary
ADDRESS

4164 Winifred Street, S. Burnaby, B.C. (R. Beaton)

7139 Elliott Street, Vancouver 16, B.C. (R. C. Grant)
LOCAL 1-357, IWA

Ni: Kelly 2232 eee
ADDRESS

731 - 12th Street, New Westminster, B.C.
LOC ae IWA

.E.-Lidberg — 2 eee Financial Se
ABO RERS Secretary
,» Box 790, Courtenay, B.C.

LOCAL 1-367, IWA

A. L. Corey _.._..
ADDRESS

22554. Lougheed Hwy., Haney, B.C.
LOCAL 1-405, IWA

Ey Atwoods. 322 2 LS
ADDRESS

Box 1779, Cranbrook, B.C.
LOCAL 1-417, IWA

WA: Welder 22 eee
ADDRESS

Box 820, Salmon Arm, B.C.
pe our’ bers IWA

Ne MOG ee a i
Fisalsee Financial Secretary

1139 Ellis Street, Kelowna, B.C.
LOCAL 1-424, IWA

7... Mogensen 2.2 or eae
ADDRESS

909 Fifth Avenue, Prince George, B.C.
INTERNATIONAL BOARD MEMBERS

T. Wyman Trineer

K. W. Johnson

Financial Secretary

.......... Financial Secretary

swwwseeees---. Financial Secretary

....... Financial Secretary

Financial Secretary

..... Financial Secretary

.. Financial Secretary

~---..-.. Financial Secretary