TARGET BENEFIT PLAN TRANSITION

We are excited to announce that on December 31, 2016, the IWA–Forest Industry Pension Plan became a target benefit plan. Target benefit plans are subject to different funding rules that allow them to focus on long-term stability, making them more stable and less prone to benefit cuts. This is why we, and many other pension plans like ours, made the decision to transition to a target benefit plan.
 

WATCH VIDEOS ON THE TRANSITION 

This video below tells you everything you need to know about the transition in less than 2 minutes.

Want more detail? Watch this 20-minute presentation.

 

PROTECTING YOUR PENSION IN RETIREMENT

Here are the top 3 things you need to know about the transition:
  1. Whether you’re already a retired member, or you plan on retiring from the plan in the future, your monthly pension income during retirement has NOT changed as a result of the transition.
  2. New funding rules mean that your pension income in retirement is MORE secure than before.
  3. If you choose to withdraw your pension or death benefit from the plan as a lump-sum payout (following a break in service or pre-retirement death), you will receive a lower lump-sum payout than under the old rules.

Remember, you and your spouse always have the option of leaving your funds in the plan and collecting a pension at retirement. If you choose to leave your funds in the plan, your pension income does NOT change as a result of the transition. The plan’s purpose has always been to provide members with a monthly pension benefit at retirement, and that hasn't changed. 


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