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Both you and Canadian Blood Services contribute to building up your pension under the DB plan.


The cost of the plan

The amount that you and Canadian Blood Services are required to contribute to the plan depends on the total cost of the plan:

  • When the total cost is between 9.5% and 11.5% of pensionable earnings (that is, the earnings recognized for pension purposes of all Canadian Blood Services employees who are members of the plan), employees contribute 4.75% of pensionable earnings, and Canadian Blood Services contributes the difference, up to 6.75% of pensionable earnings.

  • If the cost rises above 11.5% of pensionable earnings, the members and Canadian Blood Services will share the additional cost equally. Similarly, if the cost falls below 9.5%, the members and Canadian Blood Services will benefit equally from the reduction below that amount.

  • As of January 1, 2012, the contribution rate for the Canadian Blood Services Defined Benefit Pension Plan are 5.9% for plan members and 7.9% for Canadian Blood Services.

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Your contributions

  • For the purpose of contributing to the plan, your pay means your basic annual salary, excluding bonuses, shift premiums, and overtime pay. This amount is divided by 26 (the number of your bi-weekly pays each year), and rounded to the nearest cent.

  • As explained under the cost of the plan, your contribution percentage may change from time to time.

Here's an example of how your contributions are calculated.

Sam works full-time and earns $40,000 a year:

Annual pension contribution 5.9% × $40,000 = $2,360
Bi-weekly contribution $2,360 ÷ 26 = $90.77
Sam pays $90.77

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Money Purchase Feature (MPF) contributions

The Money Purchase Feature(MPF) of the DB plan allowed you to make additional, optional contributions of 2% of earnings, which attracted a corresponding Canadian Blood Services contribution of 1% of your earnings. On November 30, 2004, this feature was closed to new contributions.

If you made MPF contributions before that date, these contributions and Canadian Blood Services’ corresponding contributions remain in the pension fund and continue to accumulate interest at the rate the fund as a whole is earning, net of expenses, until you leave Canadian Blood Services, retire, or die. When you leave Canadian Blood Services, you may use these accumulated savings and the interest they’ve earned to generate additional retirement income. You will receive updates on these contributions separately on your annual pension statement.



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