Pension Portability Clause Samples
The Pension Portability clause allows employees to transfer their accrued pension benefits from one employer's plan to another when changing jobs. Typically, this clause outlines the conditions under which pension rights can be moved, such as eligibility requirements, the types of pension plans covered, and the process for transferring funds or credits between plans. Its core function is to ensure that employees do not lose their retirement savings or benefits when they switch employers, thereby promoting workforce mobility and financial security.
Pension Portability. Effective the first day of the month following ratification of the collective agreement, active employees participating in Abitibi- Consolidated pension plans that are transferred within the Company, with no interruption in employment, will be eligible for pension portability. For an employee who has been laid off for a period of less than twelve (12) consecutive months, the Company will proceed with his pension transfer if he has not terminated employment and received his severance pay or withdrawn his pension entitlement. In cases where the former mill and the new mill have different registered pension plans, the following will apply: - The employee will enter into the pension plan of the new mill. This plan will recognize the service completed under the former pension plan for purposes of eligibility for ancillary benefits (early retirement and bridge benefit). - The employee will stop accruing years of credited service in the former plan. Years of service and pensionable earnings at the new mill will be recognized in the former plan for purposes of eligibility for ancillary benefits and calculation of final average earnings. Such employee will therefore have pension entitlements in two different registered pension plans.
Pension Portability. If you leave Fleet Industries with at least two years of Plan membership, but before you are eligible to retire, you may transfer the value of your benefits to a locked-in personal Registered Retirement Savings Plan (RRSP) or to any other registered pension plan that accepts transfers.