Current Contributors
The Annual Benefit StatementThe Quarterly Report
Minimum and Maximum ContributionsIncreasing/Decreasing the Amount of ContributionsTermination of Employment with a Participating Employer
Pension Contributions During a Leave of AbsenceChanges to Personal InformationGeneral Questions Regarding Contributions
The Annual Benefit Statement
Mercer Consulting will automatically send you an Annual Benefit Statement in April, as long as you are an active contributing member.
Members who are not currently active many personally request a statement from Mercer by contacting them at 1-866-877-8481.
The Quarterly Report
Any questions about pension contributions listed on your Quarterly Report should be directed to Sue Carlisle, in our Accounting Department (905-542-7400, ext. 3244) or scarlisle@paoc.org.
Minimum and Maximum Contributions
The Canada Revenue Agency (CRA) requires that member contributions be made in accordance with the contribution policies of The Pension Fund.
As provided in the plan regulations, members are required to contribute in accordance with the attached minimum contribution scale, beginning with 2.5% of pensionable earnings for new members, and rising to a standard 5% after five years (60 months) of membership up to a voluntary maximum of 8 1/3% at any time.
Pension legislation across Canada requires each employer to match the employee contribution. For example, if a member contributes from his/her own salary 2.5%, the employer must match the 2.5% so that a total of 5% is contributed to the employee's pension account. Likewise, if a member contributes the maximum of 8 1/3%, the employer must match this so that a total of 16 2/3% is contributed to the member's pension account.
The amount contributed, within the parameters of the plan, will be up to the employer to negotiate with the employee as part of their remuneration package.
Pensionable earnings are generally defined as the base salary plus the allowable clergy housing allowance.
|
Length of Service in the Plan |
Minimum Contribution
(As a % of the Member's Pensionable Earnings) |
| 0 - 24 Months |
2.5% (Member) + 2.5% Employer = 5% |
| 25 - 59 Months |
4% (Member) + 4% (Employer) = 8% |
| More than 60 months |
5% (Member) + 5% (Employer) = 10% |
| At any stage of membership |
MAXIMUM CONTRIBUTION
At any time, any active member may contribute to the maximum of 8 1/3% (Member) + 8 1/3% (Employer) to a combined maximum of 16 2/3% |
Please ensure that your monthly contributions fall between the required minimum and maximum payments.Note: While it is
not permissible for an employee to exceed the contribution of an employer, an employer
can exceed the contribution of an employee, up to the combined maximum contribution listed in the above chart.
Increasing/Decreasing the Amount of Contributions
By written agreement between the member and his participating employer, contributions towards the pension fund can be increased or decreased at any time, as long as the percentage of the contribution falls between the required minimum and maximum contribution rates.
However, plan regulations do not permit members to increase their rate of contributions after reaching their 55th birthdate. The contribution rate at age 55 years will become the maximum that can be contributed for all subsequent years up to retirement. Consequently, it is important for members to maximize their rate of contribution before reaching age 55.
Termination of Employment with a Participating EmployerA member is
not permitted to make voluntary contributions towards the Pension Plan. All contributions must be matched by a participating employer.
If you are a
credential holder and your employment with a participating employer is terminated, you have the following options:
- Make a pension contribution from any unemployment insurance that you receive. You must, however, contribute both the employee and employer portions - at least at the minimum percentages required.
- Wait until you are once again employed by a participating employer and resume pension contributions at that time.
If you are a non-credential holder and your employment with a participating employer is terminated, you have the following options:
- Receive pension benefits at 65 yrs of age, or at 55 yrs at a reduced rate.
- Terminate from the pension plan, and transfer the funds to another registered pension plan or to an RRSP. (If you choose this option, you should contact Mercer Consulting at 1-866-877-8481 to obtain the exact amount of the payout.
Pension Contributions during a Leave of Absence
A member who temporarily suspends employment with a particiapting employer in order to take a leave of absence, which may include time off for study, becomes a dormant member. A dormant member is not permitted to make contributions towards the pension plan and the employer is not permitted to make any contributions on his/her behalf.
However, if a member is receiving remuneration from the employer while they are on leave, they may still participate in the pension plan during this time.
Changes to Personal Information
Any changes to your personal information (e.g. beneficiary changes, changes to marital status, name changes) should be directed to Mercer Consulting at 1-866-877-8481.
Address changes should be continue to be referred to National Office.
General Questions regarding contributions towards the Pension Plan
Karen Maier or Calvin Howson Phone: 905-542-7400
The Pension Fund Department Fax: 905-542-7313
The Pentecostal Assemblies of Canada Email: kmaier@paoc.org
2450 Milltower Court or chowson@paoc.org
Mississauga, Ontario L5N 5Z6
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