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This section describes what happens to your DB pension if you stop actively working for Canadian Blood Services before you retire.



If you go on sick leave

  • If you’re on sick leave with pay, or are eligible for workers’ compensation benefits, you continue contributing to the plan.

  • If you’re on sick leave without pay, you may choose to continue contributing for the period of your leave. If you do, you build up pensionable service for that period. If you decide not to contribute, your pensionable service is broken, and begins again once you return to work, when contributions resume automatically.

If you become disabled

  • If you become eligible for benefits from the Long-Term Disability Plan, you stop making your contributions to the plan. Canadian Blood Services pays the contributions on your behalf, until you return to work, terminate your employment, reach age 65, or die. These contributions are based on the amount of your pensionable earnings just before you became disabled. You continue to build up service under the plan just as if you were at work.

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If you take a leave of absence

  • If you go on maternity, parental or adoption leave without pay, you can choose to contribute to the plan for the period of your statutory leave, plus one month.

  • If you go on a compassionate leave:

    • You may keep making contributions to the plan for the period of your approved leave in order to continue to earn pensionable service in the plan

  • If you're on another form of leave without pay:

    • You may choose to continue contributing for up to one month.

    • If you do continue, you build up pensionable service for that month.

    • If you decide not to contribute, your pensionable service is broken, and begins again when contributions resume automatically once you return to work

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If you leave Canadian Blood Services before age 55

  • If you leave Canadian Blood Services before you reach age 55, you receive benefits from the plan even though you aren't eligible to retire.

You can choose one of three options:

  • Option 1: deferred pension, to begin payment at any time between age 55 and 65,

  • Option 2: transfer of the lump sum value of your deferred pension, or

  • Option 3: lump-sum transfer under “10% rule”. See Adjusted termination benefits in the next section for more information about
    the “10% rule”.

David leaves Canadian Blood Services after 15 years of pensionable service.

Value of David's pension $40,000
David's contributions with interest $32,000
Canadian Blood Services 50% share of the cost of David's benefit $20,000
David's excess contributions $32,000 - ($20,000) = $12,000

  • There are choices to make on how you receive any excess contributions, whether as a deferred pension or as a transfer, depending on the province you work in.

  • You will also receive a refund of your MPF contributions, Canadian Blood Services corresponding contributions, and the interest they've accumulated, to be transferred to a locked-in retirement saving vehicle.

Adjusted termination benefits

If you have more than one year of pensionable service when you leave Canadian Blood Services, you may choose to have your benefit adjusted by the "10% rule". Under this rule you receive your required contributions with interest (CWI) times a factor. The factor depends on how many years of pensionable service you have in the plan.

This factor ranges from 110% for those with one year of pensionable service to 200% for those with ten or more years of pensionable service.

If the benefit payable according to the 10% rule is greater than the value of your benefit (including your excess contributions, if any), you will be able to choose to receive the higher amount.

However, although the amount may be higher, the entire benefit will be locked-in; you may not receive any portion of it in cash.

David leaves Canadian Blood Services with 15 years of pensionable service.

Value of David's pension $40,000
David's contributions with interest (CWI) $32,000
Canadian Blood Services 50% share of the cost of David's benefit $20,000
David's excess contributions1 $32,000 - $20,000 = $12,000
David's total benefit value2 $40,000 + $12,000 = $52,000
Adjusted termination benefit (CWI × 200%)3 $32,000 × 200% = $64,000
David chooses $64,000
1 David's required contributions with interest equal more than 50% of the value of the pension.
2 David’s excess contributions are added to the value of his pension to determine his total pension benefit.
3 Since David has 10 or more years of service, he is eligible for the maximum adjusted termination benefit but all of this amount must be locked-in.

Denise leaves Canadian Blood Services with 2 years of pensionable service.

Value of Denise's pension $6,000
Denise's contributions with interest (CWI) $4,000
Denise's excess contributions1 $4,000 - ($6,000 × 50%) = $1,000
Denise's total benefit value2 $6,000 + $1,000 = $7,000
Adjusted termination benefit (CWI × 120%) $4,000 × 120% = $4,800
Denise chooses3 $7,000
1 Denise's required contributions with interest equal more than 50% of the value of the pension.
2 Denise’s excess contributions are added to the value of her pension to determine her total pension benefit.
3 Since Denise's total benefit value is greater than the adjusted termination benefit, she chooses this amount.

Shortened life expectancy

  • If, when your employment terminates, you are terminally ill and have a reduced life expectancy, you may be eligible to receive a cash lump-sum equal to the value of your pension benefits. Contact Morneau Shepell Ltd or your Human Resources representative for more information.

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If you leave Canadian Blood Services after age 55

  • If you leave Canadian Blood Services after you have reached age 55, and are eligible to receive an immediate pension from the plan, you can choose an immediate or deferred pension.

  • Your annual pension will be reduce by 0.3% per each month between age 60 and 65, and reduced by 0.4% for each month before age 60.

  • You are no longer entitled to transfer the value of your pension out of the plan.

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If you die while working for Canadian Blood Services

  • If you die while working for Canadian Blood Services, your survivors receive benefits from the plan.

  • Your surviving spouse, or beneficiary if you have no surviving spouse, receives the value of your pension, as well as the balance of your contributions with interest over 50% of that value, if any. There are choices to make on how the pension benefit is paid, whether as a pension, cash lump-sum or as a transfer, depending on the province you worked in.

  • Your spouse or beneficiary will also receive a refund of your MPF contributions, Canadian Blood Services' corresponding contributions, and the interest they've accumulated, if applicable.

  • Morneau Shepell Ltd will provide your survivors with details.

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If you die during retirement

  • If you die during retirement, the benefits to be paid depend on the pension payment option you chose before you retired.


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