Responsibilities | Pension Plans
Information for Pension Plan Members

Multi-Employer Plans
A multi-employer pension plan is one to which two or more non-affiliated employers contribute. For example, most unionized construction workers belong to multi-employer plans which are maintained through employer contributions required under a collective agreement.

A multi-employer plan must have a board of trustees to administer the plan. If a multi-employer plan is established under a collective agreement, at least half of the board of trustees must represent the employees.

The majority of the provisions outlined above apply to multi-employer plans. In addition, special provisions exist to determine eligibility, years of service and breaks in service.

Under the PBSA, you are eligible to join a multi-employer plan if:

• you have completed two years of continuous employment in which you have worked at least 350 hours per year with one or more participating employers, and
  
  
• you have earned at least 35% of the Year's Maximum Pensionable Earnings under the Canada Pension Plan in each of two consecutive fiscal years of the plan.

For purposes of determining eligibility, vesting and locking-in, you accrue a year of continuous employment in any fiscal year of the plan in which you have at least 350 hours of employment for which contributions have been made on your behalf. You become eligible to join the plan at the beginning of the third fiscal year, regardless of when you met the earnings test during the preceding two fiscal years.

Your membership in a multi-employer plan may terminate if you have not completed at least 350 hours of employment over a period of two consecutive fiscal years of the plan. Some plans have more generous break in service provisions.

If you cease employment, you may have to wait up to 2 years to terminate your membership in a multi-employer plan. Once the 2 years have passed, you may be eligible:

• to leave your benefits in the plan if the plan allows,
  
  
• if your benefits are vested, to transfer your benefits out of the plan, or
  
  
• if your benefits have not vested, to obtain a refund of your plan contributions (if any), plus interest.

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