EXHIBIT 10.N
RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
OF
BREWSTER TRANSPORT COMPANY LIMITED
February 2005
FOREWORD
Effective April 15, 1982, the Canadian Greyhound Employees Retirement Income
Plan was amended to provide for the participation of designated Employees of
Brewster Transport Company Limited.
Effective May 31, 1996 those designated Employees of Brewster Transport Company
Limited who were Members of the Canadian Greyhound Employees Retirement Income
Plan (the "Prior Plan") terminated membership in said plan and became Members of
the Retirement Plan for Management Employees of Brewster Transport Company
Limited, effective June 1, 1996.
For the purpose of determining the eligibility and the amount of benefits under
the Retirement Plan for Management Employees of Brewster Transport Company
Limited (the "Plan"), Continuous Service and Credited Service under the Prior
Plan shall be recognized. In no event will benefits accrued to May 31, 1996 with
respect to membership in the Prior Plan be less under this Plan.
Appropriate assets with respect to benefits accrued prior to May 31, 1996, as
determined by an Actuary and approved by government regulatory authorities, were
transferred from the pension Fund of the Prior Plan to the pension fund of this
Plan.
The Plan has been amended from time to time thereafter and effective January 1,
2000 it is amended and restated to allow Members to make money purchase
contributions for the purpose of enhancing their benefits under the Plan and to
reflect the merger of The Pension Plan for the Employees of Banff Lifts Ltd.
(the "Banff Lifts Plan") into the Plan. The benefits for members of the Banff
Lifts Plan for service to December 31, 1999 will be determined pursuant to the
terms of the Banff Lifts Plan as it read on December 31, 1999 and the benefits
of the members for service after December 31, 1999 will be based on the
provisions of this Plan. The terms of the Banff Lifts Plan on December 31, 1999
are attached as Appendix A.
Effective February 1, 2000, Banff Lifts Ltd. amalgamated with Cascade Holdings
(Banff) Inc. to form Brewster Inc. Effective on that date, employees of Banff
Lifts Ltd. became employees of Banff Sulphur Mountain Gondola an operating
division of Brewster Inc.
Except as otherwise required by applicable legislation, the rights and
entitlements of any Member who retired, died or otherwise terminated employment
before January 1, 2000 shall be governed by the terms of the Plan as in effect
at the date of termination of employment.
The Plan, as contained herein, is subject to continued registration with Canada
Revenue Agency so that the Company is entitled to deduct its contributions as
expenses under the Income Tax Act or any other applicable tax laws.
TABLE OF CONTENTS
ARTICLE TITLE PAGE
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1 Definitions 1
2 Eligibility And Participation 6
3 Service 7
4 Retirement 10
5 Pension Formula 11
6 Retirement Pension 15
7 Termination Of Employment 20
8 Normal And Optional Forms Of Pension 23
9 Benefits On Death 26
10 Limitations On Benefits 28
11 Indexing Adjustments 30
12 Funding 31
13 Company Contributions 33
14 Member Contributions 34
15 Administration 36
16 Disclosure 38
17 Future Of The Plan 39
18 Miscellaneous Provisions 42
Appendix A Banff Lifts Plan 45
ARTICLE 1
DEFINITIONS
Wherever used in this Plan, the following terms will have the meanings given
below unless the context clearly indicates otherwise.
1.01 "ACT" means the Employment Pension Plans Act of Alberta and any future
legislation amending, supplementing, superseding or incorporating it, and
any regulations issued pursuant to it or such other provincial pension
benefits legislation as may be applicable to a Member in the
circumstances.
1.02 "ACTUARIAL EQUIVALENT" means a benefit of equal value computed on an
actuarial basis that is consistent with the basis applicable to the
calculation of a Commuted Value in respect of the Member, as recommended
by the Actuary and approved by the Company, subject to the Act.
1.03 "ACTUARY" means the actuary appointed by the Company for the purposes of
the Plan. Such actuary must be a fellow of the Canadian Institute of
Actuaries.
1.04 "ANCILLARY VALUE" means the value determined pursuant to Section 5.04.
1.05 "BANFF LIFTS MEMBER" means a Member who was participating in the Banff
Lifts Plan on December 31, 1999 and who became a Member of this Plan
effective January 1, 2000.
1.06 "BANFF LIFTS PENSION" means the pension determined by reference to Section
5.05.
1.07 "BANFF LIFTS PLAN" means the Pension Plan for the Employees of Banff Lifts
Ltd. as it read on December 31, 1999.
1.08 "BENEFICIARY" of a Member means the person designated pursuant to Section
9.05.
1.09 "COMMUTED VALUE" means, in relation to benefits that a person has a
present or future entitlement to receive, a lump sum amount which is the
actuarial present value on any specified date of those benefits computed
at the rate of interest and using the actuarial tables and other
assumptions as may be adopted by the Company or an authorized officer of
the Company, subject to the requirements of the Act and the Income Tax
Act.
1.10 "COMPANY" means Brewster Transport Company Limited and associated
subsidiaries. The term "Company" as used in Article 15 regarding
administration and Article 17 regarding the power to amend or terminate
the Plan means Brewster Transport Company Limited only and does not
include any associated subsidiaries.
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1.11 "CONTINUOUS SERVICE" means service determined pursuant to Section 3.01.
1.12 "CREDITED RETURN" in respect of Money Purchase Contributions means the
rate of return earned by the applicable portion of the Pension Fund (net
of expenses) in which the contribution is invested from the date of
contribution until the date of computation.
1.13 "CREDITED SERVICE" means service credited pursuant to Section 3.02, 3.03,
3.04 and 3.05.
1.14 "DEFINED BENEFIT ACCOUNT" means the account established within the Pension
Fund pursuant to Section 12.01(a).
1.15 "DEFINED BENEFIT PENSION" means the pension determined by reference to
Section 5.03.
1.16 "EARLY RETIREMENT DATE" of a Member means the date determined pursuant to
Section 4.02.
1.17 "EARNINGS" of a Member means basic salary or wages paid to the Member by
the Company and will exclude overtime pay, bonuses and any other
additional remuneration or taxable benefits. For the purposes of any
applicable benefit calculations, it will be assumed that a Disabled Member
receives Earnings at the same rate as was in effect on the date of his
Total Disability and a Member on a Leave of Absence receives Earnings at
the same rate as was in effect on the date that the Leave of Absence
commenced.
1.18 "EMPLOYEE" means a person who is employed by Brewster Transport Company
Ltd. and is designated by the Company as being employed in a managerial or
supervisory capacity ("BREWSTER TRANSPORT EMPLOYEE"); or between January
1, 2000 and January 31, 2000 inclusive a person who is employed by Banff
Lifts Ltd., and effective February 1, 2000 and after a person employed in
the Banff Sulphur Mountain Gondola division of Brewster Inc. ("BANFF
GONDOLA EMPLOYEE")
1.19 "HIGHEST AVERAGE EARNINGS" of a Member means the average of the Member's
highest annual Earnings in any three (3) calendar years of Credited
Service, including Compensation in any calendar years of Continuous
Service under the Banff Lifts Plan, determined as at the date of
termination of Continuous Service, death, retirement, Plan termination,
whichever occurs first. For Members with less than three (3) calendar
years of Credited Service, Highest Average Earnings means the aggregate of
the Member's monthly Earnings received while an Employee divided by the
number of months of his Credited Service.
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For the sole purpose of determining Highest Average Earnings, the Earnings
of a Member who is employed on a less than full-time basis, shall be
annualized for each Plan Year of less than full-time employment. To
annualize such a Member's Earnings, the actual Earnings received by the
Member while employed on a less than full-time basis in the Plan Year
shall be multiplied by the ratio of the hours regularly scheduled to be
worked by full-time Members to the Member's actual hours worked on a less
than full-time basis in the Plan Year.
1.20 "FUNDING AGENT" means the trust company or insurance company appointed by
the Company pursuant to Section 12.01 for the purpose of holding and
administering the Pension Fund.
1.21 "FUNDING AGREEMENT" means an agreement between the Company and a Funding
Agent pursuant to Section 12.01.
1.22 "INCOME TAX RULES" means the provisions of the Income Tax Act of Canada
and the Regulations thereunder.
1.23 "LEAVE OF ABSENCE" means a period of temporary suspension of employment
not exceeding twenty-six (26) weeks. It shall also mean a temporary period
of suspension of employment not exceeding twenty-six (26) weeks where a
Member is on maternity leave.
1.24 "MEMBER" means a person who has enrolled in the Plan pursuant to Article 2
and who is entitled to receive a benefit under the Plan. "ACTIVE MEMBER"
means a Member who is an Employee other than a Disabled Member or
Suspended Member. "DEFERRED MEMBER" means a Member who is no longer an
Employee and who is entitled to receive a deferred pension pursuant to
Article 7. "DISABLED MEMBER" means a Member who is Totally Disabled and is
accruing benefits under the Plan pursuant to Section 3.03. "RETIRED
MEMBER" means a Member who is receiving a pension pursuant to the terms of
the Plan.
1.25 "MONEY PURCHASE ACCOUNT" of a Member means the account established in his
name pursuant to Section 12.01(b).
1.26 "MONEY PURCHASE CONTRIBUTIONS" means the contributions made by the Member
pursuant to Section 14.01.
1.27 "MONEY PURCHASE PENSION" means a pension determined by reference to
Section 5.02.
1.28 "MP FACTOR" means the factor determined pursuant to Section 5.02.
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1.29 "NORMAL RETIREMENT DATE" of a Member means the first day of the month
coincident with or next following the Member's 65th birthday.
1.30 "PENSION FUND" means all sums of money and other property acquired by the
Funding Agent to hold for the purposes of this Plan, and all earnings and
profits thereon, and proceeds, investments and reinvestments thereof, less
payments made by the Funding Agent from the said fund as authorized
herein.
1.31 "PLAN" means the Retirement Plan for Management Employees of Brewster
Transport Company Limited, as set forth in this document and as the same
may be amended from time to time.
1.32 "PLAN FACTORS" means such standards and procedures for determining amounts
of pension, Commuted Values of pensions and other standards and procedures
of a like nature as are adopted from time to time by the Company or an
authorized officer of the Company and which shall produce values in
accordance with those prescribed by the Act and the Income Tax Act.
1.33 "PLAN YEAR" means June 1, 1996 to December 31, 1996 with respect to the
first year of operation and thereafter means the period commencing on each
January 1 and ending on the following December 31.
1.34 "POSTPONED RETIREMENT DATE" of a Member means the date determined pursuant
to Section 4.03.
1.35 "PREDECESSOR COMPANY" means Banff Lifts Ltd.
1.36 "PRESENT VALUE FACTOR" means, in respect of an annual pension amount, the
present value for $1.00 of such pension determined on an actuarial basis
that is consistent with the basis that applicable to the calculation of a
Commuted Value in respect of the Member, using the methods and assumptions
adopted by the Company, subject to the Act and the Income Tax Rules.
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1.37 "SPOUSE" of a Member means:
(a) a person who, at the relevant time, was married to the Member and
had not been living separate and apart from that Member for 3 or
more consecutive years, or
(b) if there is no person to whom subclause (a) applies, a person of the
opposite sex who had lived with the Member in a marriage-like
relationship for the 3-year period immediately preceding the
relevant time.
Effective June 1, 2003, Spouse of a Member means:
(a) a person who, at the relevant time, was married to the Member and
had not been living separate and apart from the Member for 3 or more
consecutive years, or
(b) if there is no person to whom sub clause (a) applies, a person who,
immediately preceding the relevant time, had lived with the Member
in a conjugal relationship
(i) for a continuous period of at least 3 years, or
(ii) of some permanence, if there is a child by the relationship by
birth or adoption.
1.38 "TOTALLY DISABLED" means, in respect of a Member, suffering from a mental
or physical condition that, as determined by the Company on the basis of
the certification of a licensed medical doctor prevents the Member
permanently or in the foreseeable future from performing the assigned
duties of his job or any other job for which he is reasonably suited by
virtue of his education, training or experience and there is no reasonable
expectation that he will recover. "TOTAL DISABILITY" has a corresponding
meaning.
1.39 "YMPE" means, in any year, the Year's Maximum Pensionable Earnings
established for that year under the provisions of the Canada Pension Plan
or the Quebec Pension Plan, whichever is applicable to the Member
concerned.
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ARTICLE 2
ELIGIBILITY AND PARTICIPATION
2.01 CONTINUING MEMBERS
A person who is a Member of the Plan on December 31, 1999 and who does not
break Continuous Service on January 1, 2000 shall remain a Member of the
Plan on January 1, 2000.
An employee of Banff Lifts Ltd. who is participating in the Banff Lifts
Plan on December 31, 1999 and who is a Banff Gondola Employee on January
1, 2000 shall become an Active Member of the Plan on January 1, 2000.
2.02 NEW MEMBERS
Each full-time Employee who does not qualify under Section 2.01 shall
become an Active Member of the Plan on the first day of the month
following date of hire.
Each Employee employed on a less than full-time basis shall become a
Member of the Plan at any time after completing at least two (2) years of
employment with the Company and having earned at least thirty-five percent
(35%) of the YMPE in each of two (2) consecutive calendar years.
2.03 WAIVER
The Company may waive the eligibility requirements for any Employee.
2.04 ENROLLMENT
Each full-time Employee, shall file with the Company or its agent an
enrollment form provided by the Company for this purpose. Any other
Employee, who meets the eligibility requirements set forth above shall
file such an enrollment form in the same manner as a full-time Employee.
2.05 CONTINUING PARTICIPATION AS A MEMBER
An Active Member may not terminate membership in the Plan while employed
by the Company as an Employee. In addition, a Member who is or becomes
employed on a less than full-time basis shall not cease to be a Member or
to accrue pension benefits under the Plan only because he earns less than
thirty-five percent (35%) of the YMPE in each of two (2) consecutive
calendar years.
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2.06 RE-EMPLOYMENT - DEFERRED MEMBER
If a former Employee, other than a person described in Article 2.07, is
subsequently re-employed by the Company, the Employee shall for purposes
of the Plan be treated as a new Employee, except that any right to a
deferred pension he may have as a result of his prior period of Credited
Service shall not be affected by this provision and such deferred pension
shall not be allowed to commence during the period of re-employment. For
greater certainty, any pension earned after the date of re-employment
shall be calculated based only on Credited Service after that date.
2.07 RE-EMPLOYMENT - RETIRED MEMBER
If a Retired Member is re-employed by the Company, he shall continue to
receive his pension but he shall not be permitted to again join the Plan
nor shall he accrue further pension benefits during the period of
re-employment.
ARTICLE 3
SERVICE
3.01 CONTINUOUS SERVICE
Continuous Service of an Employee means the most recent period of
continuous uninterrupted employment of the Employee with the Company
including any employment with the Predecessor Company and any Leave of
Absence. The following breaks in the continuity of employment shall be
ignored:
(a) a period of absence from employment following termination thereof if
followed by reinstatement with past service unimpaired; and
(b) a period of layoff, furlough or other absence if followed by return
to service with past service unimpaired.
3.02 CREDITED SERVICE
Credited Service means that period of an Employee's Continuous Service in
Canada during which he is an Active Member of the Plan plus any service
credited pursuant to Section 3.03 or 3.04 and any Credited Service accrued
under the Canadian Greyhound Employees Retirement Income Plan by a Member
who transferred to this Plan effective June 1, 1996 but excluding any
period of "Pensionable Service" which a Banff Lifts Member accrued under
the Banff Lifts Plan. Credited Service shall be determined from the
records of the
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Company in accordance with such rules and regulations as may from time to
time be in effect.
Subject to the Act and the Income Tax Rules, a Member who is absent due to
a Leave of Absence will continue to accrue Credited Service under the
Plan. Notwithstanding any other provisions of the Plan, in no event will a
Member receive Credited Service for periods of Leave of Absence in excess
of five years of full-time equivalent remuneration, plus three years of
full-time equivalent remuneration for periods of parenting, throughout his
period of employment with the Company after December 31, 1990, in
accordance with the Act and the Income Tax Rules.
3.03 CREDITED SERVICE WHILE TOTALLY DISABLED
If an Active Member becomes Totally Disabled, the Member's Continuous
Service shall not be broken, the Member shall become a Disabled Member and
the Member shall continue to accrue Credited Service until the earliest
of:
(a) the date he ceases to be Totally Disabled;
(b) the date he dies;
(c) the date he retires pursuant to the Plan;
(d) his Normal Retirement Date; and
(e) the date the Plan is terminated in respect of the class of employees
in which the member last worked.
Upon the earliest of the above-noted dates, the Disabled Member's
Continuous Service shall be broken unless the Member returns to active
employment as an Employee at that time. Credited Service accrued pursuant
to this Section shall accrue at the same rate as the Disabled Member was
accruing Credited Service immediately prior to becoming disabled.
The Company may, by written notice, require a Disabled Member to submit to
medical examination at any time prior to his Normal Retirement Date in
order to determine such Disabled Member's eligibility for continued
accrual of Credited Service, provided that such examinations may not be
required more frequently than semi-annually. If:
(a) on the basis of a medical examination the Company finds that the
Member is no longer Totally Disabled;
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(b) the Member engages in gainful employment other than for purposes of
occupational therapy directed toward physical rehabilitation; or
(c) such Member refuses to submit to a medical examination;
as determined by the Company, accrual of Credited Service under this
Section shall cease effective on: (i) the date when the Company finds that
the Member is no longer Totally Disabled, (ii) the date when the Member
engaged in gainful employment for purposes other than occupational
therapy, or (iii) the date when the Company last issued written notice
requesting the Member to submit to medical examination, whichever is
applicable. At such time, if the Member does not return to employment with
the Company, he shall be deemed to have broken Continuous Service and his
entitlement under the Plan shall be determined pursuant to Article 4, 7 or
9, whichever is applicable.
A Member may continue to contribute pursuant to Section 14.01 in respect
of a period of Credited Service provided under this Section.
3.04 PRIOR SERVICE TRANSFERRED INTO PLAN
Credited Service shall include any period of service, as approved by the
Company and deemed permissible under the Income Tax Rules, during which
the Member was in employment with the Company or a predecessor employer
and for which the Member has paid contributions in full into the Fund
and/or for which the Member has made a qualifying transfer under the terms
of the Income Tax Rules into the Fund. The amount of contribution and/or
qualifying transfer shall be determined by the Actuary in accordance with
the Plan Factors. Additional benefits resulting from the crediting of this
service shall be subject to the provisions of Article 10.
3.05 DETERMINATION AND MEASUREMENT OF CREDITED SERVICE
Credited Service shall be expressed as a period of years and fractions
thereof, rounded to three decimals. For a Member who is employed on a less
than full-time basis, Credited Service shall be determined for each Plan
Year of less than full-time employment by multiplying the Member's period
of Credited Service as defined pursuant to Section 3.02, 3.03 and 3.04 by
the ratio of such Member's actual hours worked on a less than full-time
basis during the Plan Year to the hours regularly scheduled to be worked
by full-time Members during that time period.
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ARTICLE 4
RETIREMENT
4.01 NORMAL RETIREMENT
Subject to Sections 4.02 and 4.03, an Active Member or Disabled Member
shall retire on his Normal Retirement Date. A Member who retires on his
Normal Retirement Date shall receive a retirement pension calculated
pursuant to Section 6.01.
4.02 EARLY RETIREMENT
An Active Member or Disabled Member may elect to retire prior to his
Normal Retirement Date on the first day of any month coincident with or
following attainment of his fiftieth (50th) birthday. The date selected by
the Member for early commencement of his pension under the Plan shall be
his Early Retirement Date. A Member who elects early retirement shall
receive, commencing on his Early Retirement Date, a retirement pension
calculated pursuant to Section 6.02.
4.03 POSTPONED RETIREMENT
An Active Member may, with the consent of the Company, remain in active
employment beyond the Member's Normal Retirement Date. The retirement
pension of a Member who postpones retirement beyond his Normal Retirement
Date shall commence on the first day of the month coincident with or next
following the earliest of:
(a) the first day of the month coincident with or following the date on
which the Member retires from active employment with the Company;
(b) the first day of any month selected by the Member; and
(c) the first day of December in the year in which the Member attains
age 69 or such later date as may be permitted under the Income Tax
Rules;
and such date shall be the Member's Postponed Retirement Date. A Member
who retires on his Postponed Retirement Date shall receive, commencing on
such Postponed Retirement Date, a retirement pension calculated pursuant
to Section 6.04. A Member shall not accrue further Credited Service after
his Postponed Retirement Date.
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ARTICLE 5
PENSION FORMULA
5.01 AMOUNT OF PENSION
Subject to Article 10, the benefits of a Member under this Plan shall be
the Member's Defined Benefit Pension and Money Purchase Pension, plus the
Banff Lifts Pension if applicable, determined by reference to the
provisions of this Article.
5.02 MONEY PURCHASE PENSION
For the purposes of the offset under Section 5.03(b), a Money Purchase
Pension shall be calculated for a Member equal to the annual pension
payable at the Member's Normal Retirement Date which can be provided by
the balance of his Money Purchase Account when such balance is applied to
produce a pension with a Present Value Factor (the "MP Factor") equal to
the following:
(X + Y)Z/Y
where X equals: the balance in the Money Purchase Account of the Member;
Y equals: Z multiplied by the annual amount of Defined Benefit
Pension determined under Section 5.03(a);
Z equals: the Present Value Factor for $1.00 of lifetime pension
(payable commencing when the Member reaches Normal
Retirement Date) pursuant to the terms of the Plan,
determined as if payable as a Defined Benefit Pension
payable in the normal form under Section 8.01, or in the
form required under Section 8.04 if applicable, and
without any indexing under Article 11,
provided that such MP Factor shall not exceed the Present Value Factor of
a lifetime pension with the maximum level of ancillary benefits offered
under Section 5.04 (including any applicable bridging benefits),
reflecting the limitations contained in Section 6.02(e), 6.06, 8.02, 8.05,
Article 10 and Section 11.01.
5.03 DEFINED BENEFIT PENSION
A Member's annual Defined Benefit Pension shall be equal to:
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(a) 2% of the Member's Highest Average Earnings multiplied by the
Member's Credited Service (provided that such pension shall not
exceed the amount determined by reference to Section 10.01);
REDUCED BY
(b) the annual amount of Money Purchase Pension determined pursuant to
Section 5.02;
provided that the resulting amount shall not be less than zero.
However, if a Member retires pursuant to Section 4.01, 4.02 or 4.03, and
does not elect to transfer his Money Purchase Account out of the Pension
Fund pursuant to Section 6.05, or if the Member is entitled to a deferred
pension pursuant to Section 7.02 and the Member does not elect to transfer
his Money Purchase Account out of the Pension Fund pursuant to Section
7.05, then the following rules shall apply.
(c) The Member's Defined Benefit Pension which, pursuant to Section
6.01, 6.02, 6.04, or 7.02, is calculated by reference to the first
paragraph of this Section 5.03 shall be determined without the
offset provided under Section 5.03(b).
(d) The redetermination of the Member's Defined Benefit Pension pursuant
to (c) above shall be subject to certification by the Minister of
Revenue of any past service pension adjustment that arises due to
such redetermination, as reduced by any qualifying transfer arising
from the transfer described in (e) below.
(e) The balance of the Member's Money Purchase Account, not exceeding
the limit contained in the last paragraph of Section 5.04, Part B
(Member Transfers Money Purchase Account to Defined Benefit
Account), shall be transferred to the Defined Benefit Account as of
the date of pension commencement chosen by the Member. However, if
the balance of the Member's Money Purchase Account exceeds the limit
contained in the last paragraph of Section 5.04, Part B, then a
portion of the Member's Money Purchase Account equal to such limit
shall be transferred to the Defined Benefit Account and the
remainder of the Money Purchase Account shall be paid to the Member
in cash.
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5.04 ANCILLARY VALUE AND ENHANCEMENT OF PENSION
The provisions of Part A or Part B below, as applicable, determine the
enhancement of a Member's pension.
PART A: MEMBER TRANSFERS MONEY PURCHASE ACCOUNT OUTSIDE PLAN
If a Member has a Money Purchase Account and elects to transfer that Money
Purchase Account out of the Pension Fund pursuant to Section 6.05 or 7.05,
then the Member shall be credited with an Ancillary Value equal to:
(a) the value Y determined pursuant to Section 5.02;
MINUS
(b) the annual Defined Benefit Pension determined pursuant to Section
5.03 after the offset provided under Section 5.03(b), multiplied by
the factor Z determined pursuant to Section 5.02.
The Member may elect to allocate his Ancillary Value to provide one or
more of the following enhancements to his Defined Benefit Pension by
completing and filing an election form in the manner prescribed by the
Company:
(c) If the Member's pension would be subject to a reduction for early
retirement under Section 6.02(c) that early retirement reduction may
be lessened, or waived entirely if possible, pursuant to Section
6.02(e) subject to the minimum reduction required under Section
6.02(e).
(d) If the Member does not have a Spouse or if the mandatory joint and
survivor form is waived pursuant to Section 8.06, then the Member's
pension may be guaranteed pursuant to Section 8.02 but the guarantee
period shall not exceed 180 months. If the Member does have a
Spouse, the benefit may be paid in the form of a joint and
two-thirds survivor pension pursuant to Section 8.05 which is
unreduced or reduced on a less than actuarial basis and which may
include a guarantee of 60 months.
(e) The Member's pension and any bridging benefits may be granted
indexing pursuant to the provisions of Article 11.
(f) The Member may elect to receive a bridging benefit payable from his
Early Retirement Date pursuant to Section 6.03, but subject to the
limits imposed by Article 10.
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The Member must complete and file such election with the Company no later
than the date of pension commencement chosen by the Member or the Member
shall be deemed to have elected to allocate his Ancillary Value to each of
(c), (d), (e) and (f) above in turn in descending order. If the Ancillary
Value is not exhausted by one item the balance of the Ancillary Value
shall be allocated to each subsequent item in turn until the Ancillary
Value is exhausted or until the maximum allocation has occurred under all
of (c), (d), (e) and (f).
PART B: MEMBER TRANSFERS MONEY PURCHASE ACCOUNT TO DEFINED BENEFIT ACCOUNT
If a Member retires pursuant to Section 4.01, 4.02 or 4.03, and does not
elect to transfer his Money Purchase Account out of the Pension Fund
pursuant to Section 6.05, or if the Member is entitled to a deferred
pension pursuant to Section 7.02 and the Member does not elect to transfer
his Money Purchase Account out of the Pension Fund pursuant to Section
7.05, then:
(a) the Member shall be credited with an Ancillary Value equal to the
balance of his Money Purchase Account transferred pursuant to
Section 5.03(e); and
(b) the following provisions of Part B of this Section shall apply to
that Member.
The Member may elect to allocate his Ancillary Value to provide one or
more of the following enhancements to his Defined Benefit Pension by
completing and filing an election form in the manner prescribed by the
Company:
(c) If the Member's pension would be subject to a reduction for early
retirement under Section 6.02(c), then that early retirement
reduction may be lessened, or waived entirely if possible, pursuant
to Section 6.02(e), subject to the minimum reduction required under
Section 6.02(e).
(d) If the Member does not have a Spouse or if the mandatory joint and
survivor form is waived pursuant to Section 8.06, then the Member's
pension may be guaranteed pursuant to Section 8.02 but the guarantee
period shall not exceed 180 months. If the Member does have a
Spouse, the Member's pension may be paid in the form of a joint and
two-thirds survivor pension pursuant to Section 8.05 which is
unreduced or reduced on a less than actuarial basis and which may
include a guarantee of 60 months.
(e) The Member's pension and any bridging benefits may be granted
indexing pursuant to the provisions of Article 11.
(f) The Member may elect to receive a bridging benefit payable from his
Early Retirement Date pursuant to Section 6.03, but subject to the
limits imposed by Article 10.
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The Member must complete and file such election with the Company no later
than the date of pension commencement chosen by the Member or the Member
shall be deemed to have elected to allocate his Ancillary Value to each of
(c), (d), (e) and (f) above in turn in descending order. If the Ancillary
Value is not exhausted by one item the balance of the Ancillary Value
shall be allocated to each subsequent item in turn until the Ancillary
Value is exhausted or until the maximum allocation has occurred under all
of (c), (d), (e) and (f).
A Member's Ancillary Value shall be allocated to provide enhancements
under (c), (d), (e) and (f) to the fullest extent possible. However, the
amount transferred from the Member's Money Purchase Account to the Defined
Benefit Account pursuant to the second paragraph of Section 5.03 shall not
exceed the Commuted Value of the offset to the Defined Benefit Pension
determined under Section 5.03(b) when valued using the MP Factor
determined for the Member pursuant to Section 5.02.
5.05 BANFF LIFTS PENSION
A Member's annual Banff Lifts Pension shall be calculated based on the
applicable terms of the Banff Lifts Plan attached as Appendix A, and
determining the "Final Earnings" and "Indexed Compensation" of the Member
(as those terms are used in Appendix A) at the time the Member retires or
otherwise terminates employment with the Company as if he had continued to
participate in the Banff Lifts Plan until that date and using "Pensionable
Service" accrued under the Banff Lifts Plan to December 31, 1999.
ARTICLE 6
RETIREMENT PENSION
6.01 NORMAL RETIREMENT PENSION
A Member who retires on his Normal Retirement Date shall receive a
retirement pension calculated pursuant to Section 5.01, 5.02, 5.03 and
5.04 based on the Member's Credited Service and Highest Average Earnings
on his Normal Retirement Date and the value of his Money Purchase Account
at that time.
In addition, if the Member is a Banff Lifts Member he shall receive his
Banff Lifts Pension calculated pursuant to Section 5.05.
6.02 EARLY RETIREMENT PENSION
A Member who retires on his Early Retirement Date shall receive a
retirement pension based on the Member's Credited Service and Highest
Average Earnings on his Early Retirement Date and the value of his Money
Purchase Account at that time, and calculated according to the following
procedure:
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(a) The Member's MP Factor shall be calculated by reference to Section
5.02 except that the formula for the MP Factor shall be modified to
read as:
(X + Y(E))Z/Y
where X, Y and Z are determined pursuant to Section 5.02; and
Y(E)equals: the Commuted Value of the benefits payable
commencing on the Member's Early Retirement
Date, determined as if payable as a Defined
Benefit Pension without the offset provided
under Section 5.03(b), payable in the normal
form under Section 8.01, or the joint and
survivor form required pursuant to Section 8.04
if applicable, and without any indexing under
Article 11, and after reduction pursuant to the
reduction factor specified in Section 6.02(c),
provided that such MP Factor shall not exceed the Present Value
Factor of a lifetime pension with the maximum level of ancillary
benefits offered under Section 5.04 (including any applicable
bridging benefits), reflecting the limitations contained in Section
6.02(e), 6.06, 8.02, 8.05, Article 10 and Section 11.01.
The Member's Money Purchase Pension offset pursuant to Section 5.02
shall then be calculated based on this MP Factor.
(b) The Member's Defined Benefit Pension shall be calculated pursuant to
Section 5.03 and:
(i) if the Member elects to transfer his Money Purchase Account
out of the Pension Fund pursuant to Section 6.05, then the
offset under Section 5.03(b) shall be based on the amount
calculated under Section 6.02(a); and
(ii) if the Member does not elect to transfer his Money Purchase
Account out of the Pension Fund pursuant to Section 6.05, then
the transfer from the Member's Money Purchase Account to the
Defined Benefit Account described in Section 5.03(e) shall
occur and, subject to Section 5.03(c) and (d), the Money
Purchase Pension offset under Section 5.03(b) shall not apply.
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(c) The Member's Defined Benefit Pension calculated under (b) above
shall then be reduced by five-twelfths of one percent (5/12%) for
each month that his Early Retirement Date precedes the first day of
the month following his 60th birthday subject to the minimum
reduction required under the Income Tax Rules.
(d) The Member's Ancillary Value shall be determined as:
(i) if the conditions in subsection (b)(i) apply:
(A) the value Y(E) determined pursuant to Section 6.02(c);
MINUS
(B) the Commuted Value of the monthly Defined Benefit
Pension determined pursuant to Section 6.02(c); and
(ii) if the conditions in subsection (b)(ii) apply, the balance of
his Money Purchase Account transferred pursuant to Section
5.03(e).
(e) Notwithstanding (c) above, if the Member elects (or is deemed to
elect) to apply all or part of his Ancillary Value pursuant to
subsection (c) of either Part A or Part B of Section 5.04 to lessen
the early retirement reduction applicable to his Defined Benefit
Pension, then the early retirement reduction otherwise applicable
shall be lessened to the extent selected by the Member subject to
the following conditions: (i) the Commuted Value of the diminishment
of the early retirement reduction shall equal the Ancillary Value
allocated pursuant to that subsection (c); and (ii) the Defined
Benefit Pension must be reduced by at least 0.25% for each month
that the Member's Early Retirement Date precedes the earliest of:
(i) the date the Member would attain age 60;
(ii) the date the age and early retirement eligibility service of
the Member would total 80 years; and
(iii) the date the Member would accrue 30 years of early retirement
eligibility service;
if the Member continued to participate in the Plan. For the purposes
of this paragraph "early retirement eligibility service" has the
meaning given to that term under the Income Tax Rules.
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In addition, if the Member is a Banff Lifts Member then he shall receive
his Banff Lifts Pension calculated by reference to Section 5.05 and
reduced as required by the applicable provisions of Appendix A regarding
early retirement.
6.03 BRIDGING BENEFIT
(a) If the Member elects (or is deemed to elect) to apply all or part of
his Ancillary Value pursuant to subsection (f) of either Part A or
Part B of Section 5.04 to provide a bridging benefit, then the
Member shall receive a bridging benefit payable under the defined
benefit provisions of the Plan. The amount of such bridging benefit
shall be selected by the Member subject to the condition that the
Commuted Value of the bridging benefit shall equal the Ancillary
Value allocated pursuant to that subsection.
(b) The bridging benefits determined pursuant to subsection (a) shall be
payable commencing no earlier than the Member's Early Retirement
Date and shall cease with the payment for the month in which the
Member dies or attains age 65, whichever occurs earlier. However,
the bridging benefit may continue to the payment for the month in
which the Member would have attained age 65 if the Member elects to
apply Ancillary Value to secure such a survivor option for the
bridging benefit.
(c) The bridging benefits payable under this Section 6.03 are subject to
the limitations contained in Article 10.
6.04 POSTPONED RETIREMENT PENSION
A Member who retires on a Postponed Retirement Date shall be entitled to
receive, commencing on such Postponed Retirement Date, an annual
retirement pension calculated by reference to Article 5 based on the
Member's Credited Service and Highest Average Earnings on his Postponed
Retirement Date. The Member's Money Purchase Pension offset shall be based
on the value of his Money Purchase Account on his Postponed Retirement
Date and calculated pursuant to Section 5.02 subject to the following
modifications:
(a) The Member's MP Factor shall be calculated pursuant to Section 5.02
assuming a pension commencing at the Member's Postponed Retirement
Date.
(b) Factor Z shall be based on a Present Value Factor for a lifetime
pension commencing on the Member's Postponed Retirement Date.
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In addition, if the Member is a Banff Lifts Member then he shall receive
his Banff Lifts Pension calculated by reference to Section 5.05 and
adjusted as required by the applicable provisions of Appendix A regarding
postponed retirement.
6.05 PORTABILITY OF PENSION
A Member who is entitled to a pension under Section 6.01, 6.02 or 6.04
may, despite eligibility for an immediate pension and after determining
any offset of his Defined Benefit Pension pursuant to Section 5.03 and
allocating his Ancillary Value pursuant to Section 5.04, elect to transfer
either the Commuted Value of his Defined Benefit Pension (including any
associated bridge benefits) plus the balance of his Money Purchase
Account, or the balance his Money Purchase Account out of the Pension Fund
to:
(a) another registered pension fund meeting the requirements prescribed
under the Act, if the administrator of that fund agrees to accept
the payment;
(b) a company licensed to provide annuities in Canada, for the purchase
of a life annuity that will commence no earlier than age 55;
(c) a locked-in retirement account in the name of the Member provided
that the Spouse of such Member executes and files with the Company a
waiver in the form required under the Act;
(d) a life income fund in the name of the Member provided that the
Spouse of such Member executes and files with the Company a waiver
in the form required under the Act; or
(e) another retirement savings arrangement meeting the requirements
prescribed under the Act;
provided that notice of such election is given to the Company within the
time limits prescribed under the Act (or as otherwise permitted by the
Company) and that such transfer is carried out in accordance with the
requirements of the Act and the Income Tax Rules.
The Member may elect to receive the balance of his Money Purchase Account
in a cash lump sum or to transfer it to an unlocked registered retirement
savings plan rather than transferring it to one of the locked-in
portability vehicles listed above.
A Member who elects a transfer of the Commuted Value of his Defined
Benefit Pension or a transfer or payment of the balance of his Money
Purchase Account shall take that transfer or payment in full satisfaction
of such rights under the Plan and upon completion of such
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transfer or payment shall have no further entitlement in respect of such
benefits under the Plan.
ARTICLE 7
TERMINATION OF EMPLOYMENT
7.01 NON VESTED TERMINATION
If an Active Member or Disabled Member breaks Continuous Service for any
reason other than death or retirement before completing two years of
Continuous Service the Member shall receive a lump sum amount equal to the
balance of the Member's Money Purchase Account or he may elect to transfer
said balance to a registered retirement savings plan in his name.
In addition, if the Member is a Banff Lifts Member termination benefits
may be payable pursuant to the applicable terms of Appendix A regarding
termination of employment.
7.02 DEFERRED PENSION
If an Active Member or Disabled Member breaks Continuous Service for any
reason other than death or retirement after completing two years of
Continuous Service the Member shall become a Deferred Member and shall be
entitled to receive a deferred pension commencing on the Member's Normal
Retirement Date. Such deferred pension shall be calculated and determined
by reference to Article 5 at the time that the Member breaks Continuous
Service. The calculation shall be based on the Member's Credited Service
and Highest Average Earnings on the date he breaks Continuous Service and
the value of his Money Purchase Account at his Normal Retirement Date.
The redetermination of the Member's Defined Benefit Pension and the
transfer of his Money Purchase Account to the Defined Benefit Account
pursuant to Section 5.03(c), (d) and (e) shall occur as of the Member's
Normal Retirement Date. The Member must complete an election allocating
his Ancillary Value pursuant to Part A or Part B of Section 5.04, as
applicable, and file such election with the Company on or prior to his
Normal Retirement Date or the Member shall be deemed to have elected to
allocate his Ancillary Value to each of Section 5.04(c), (d), (e) and (f)
in turn in descending order. If the Ancillary Value is not exhausted by
one item, the balance of the Ancillary Value shall be allocated to each
subsequent item in turn until the Ancillary Value is exhausted or until
the maximum allocation has occurred under all of subsections(c), (d), (e)
and (f).
-20-
In addition, if the Member is a Banff Lifts Member a deferred pension or
termination benefit may be payable pursuant to the applicable terms of
Appendix A regarding termination of employment.
7.03 EARLY COMMENCEMENT
A Deferred Member may elect to begin receiving his deferred pension on the
first day of any month after he will attain age 50. A Deferred Member who
wishes to begin receiving his deferred pension prior to his Normal
Retirement Date must apply, in writing, to the Company, at least 60 days
prior to the date when the Deferred Member wishes payment of the pension
to commence.
The Member's Defined Benefit Pension shall be actuarially reduced to
reflect commencement prior to Normal Retirement Date except as modified by
any allocation pursuant to subsection (c) of either Part A or Part B of
Section 5.04. However, if the Deferred Member had attained age 50 before
he broke Continuous Service, then the amount of any reduction to his
Defined Benefit Pension for early commencement shall be determined
pursuant to Section 6.02(c) as if the Deferred Member was retiring early
(based on his Credited Service and Highest Average Earnings at the date
the Member breaks Continuous Service and the value of his Money Purchase
Account on the date of pension commencement), as modified by any
allocation pursuant to subsection (c) of either Part A or Part B of
Section 5.04. The redetermination of the Member's Defined Benefit Pension
and the transfer of his Money Purchase Account to the Defined Benefit
Account pursuant to Section 5.03(c), (d) and (e) shall occur as of the
date chosen for pension commencement. The Deferred Member who elects to
commence his deferred pension early must allocate his Ancillary Value
calculated pursuant to Section 6.02 in accordance with Section 5.04 by the
time his pension is to commence or he shall be deemed to allocate his
Ancillary Value pursuant to the default provisions of Section 5.04.
A Member who elects to commence his deferred pension prior to his Normal
Retirement Date will also receive any bridging benefit which he has
elected to receive or is deemed to elect pursuant to subsection (f) of
either Part A or Part B of Section 5.04.
The amount of any deferred Banff Lifts Pension payable to a Banff Lifts
Member shall be determined pursuant to the applicable terms of Appendix A
regarding early commencement of benefits.
7.04 APPLICATION FOR PENSION
A Deferred Member entitled to a deferred pension shall make application,
in writing, to the Company, at least 60 days prior to the date when the
Deferred Member wishes payment of
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the pension to commence.
7.05 PORTABILITY
A Member who breaks Continuous Service and who is entitled to a deferred
pension under the terms of this Plan may, after determining any offset of
his Defined Benefit Pension pursuant to Section 5.03 and allocating his
Ancillary Value pursuant to Section 5.04, elect to transfer either the
Commuted Value of the deferred Defined Benefit Pension (including any
associated bridge benefits) plus the balance of his Money Purchase
Account, or the balance his Money Purchase Account out of the Pension Fund
to:
(a) another registered pension fund meeting the requirements prescribed
under the Act, if the administrator of that fund agrees to accept
the payment;
(b) a company licensed to provide annuities in Canada, for the purchase
of a life annuity that will commence no earlier than age 55;
(c) a locked-in retirement account in the name of the Member;
(d) a life income fund or locked-in retirement income fund in the name
of the Member provided that the Member had attained age 50 and the
Spouse of such Member executes and files with the Company a waiver
in the form required under the Act; or
(e) another prescribed retirement savings arrangement in the name of the
Member;
provided that notice of such election is given to the Company within the
time limits prescribed under the Act (or as otherwise permitted by the
Company) and that such transfer is completed in accordance with the
requirements of the Act and the Income Tax Rules.
The Member may elect to receive the balance of his Money Purchase Account
in a cash lump sum or to transfer it to an unlocked registered retirement
savings plan in lieu of transferring it to one of the locked-in
portability vehicles listed above.
A Member who elects a transfer of the Commuted Value of his deferred
Defined Benefit Pension or a transfer or payment of the balance of his
Money Purchase Account shall take that transfer or payment in full
satisfaction of such rights under the Plan and upon the completion of such
transfer or payment shall have no further entitlement in respect of such
benefits under the Plan.
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ARTICLE 8
NORMAL AND OPTIONAL FORMS OF PENSION
8.01 NORMAL FORM OF PENSION
Subject to the other provisions of this Article:
(a) a Member's annual pension shall be payable in equal monthly
instalments for the lifetime of the Member beginning on the Member's
retirement date and ending with the payment immediately preceding
his death, and
(b) a Member's Banff Lifts Pension shall be payable pursuant to the
applicable terms of Appendix A regarding normal forms.
8.02 ENHANCED FORM OF PENSION
Notwithstanding the provisions of Section 8.01, if a Member elects (or is
deemed to elect) to apply all or part of his Ancillary Value pursuant to
subsection (d) of either Part A or Part B of Section 5.04 to provide a
form of guarantee then the Member's Defined Benefit Pension shall be
guaranteed for a number of months. The length of the guarantee shall be
determined so that the Commuted Value of the Defined Benefit Pension with
the guarantee is equal to the Commuted Value of the Defined Benefit
Pension payable without a guarantee plus the Ancillary Value allocated to
provide the guarantee. The guarantee period shall be measured in whole
months and the total period guaranteed under this Article 8 shall not
exceed 180 months.
8.03 COMMUTATION OF GUARANTEE
If a Member dies before the guaranteed number of payments have been made,
the monthly instalments shall then be paid to the Member's Beneficiary
until the guaranteed number of payments have been completed.
Alternatively, if the Beneficiary elects, the Company may, at its
discretion, commute the remaining payments and pay the Commuted Value of
such remaining payments to the Member's Beneficiary in a lump sum in
satisfaction of the guarantee.
8.04 MANDATORY JOINT AND SURVIVOR FORM OF PENSION
Notwithstanding the preceding provisions of this Article 8, if a Member
has a Spouse on the date that payment of the Member's pension commences
then the amount of the Member's Defined Benefit Pension shall be reduced
and paid in the form of a joint and 60% survivor pension without
guarantee. This joint and survivor pension shall be payable in equal
-23-
monthly installments for the Member's lifetime and after the Member's
death, the pension shall continue to be paid to the Member's Spouse for
the Spouse's remaining lifetime, in equal monthly installments, equal to
sixty percent (60%) of the amount of the monthly installment that was paid
to the Member immediately prior to his death. The joint and survivor
pension shall be the Actuarial Equivalent of the normal form of pension
which would otherwise be payable under Section 8.01. However, if the
Member retires on or after his Normal Retirement Date, no actuarial
reduction applies and the amount of Defined Benefit Pension payable to the
Member shall be the amount determined by reference to Article 5 with 60%
of such amount payable to the Spouse for her lifetime on the death of the
Member.
The form and amount of the Banff Lifts Pension payable to a Banff Lifts
Member shall be determined pursuant to the applicable terms of Appendix A
regarding normal forms.
8.05 ENHANCED JOINT AND TWO-THIRDS SURVIVOR FORM OF PENSION
Notwithstanding the provisions of Section 8.04, if a Member with a Spouse
on the date that payment of his pension commences elects (or is deemed to
elect) to apply all or part of his Ancillary Value pursuant to subsection
(d) of either Part A or Part B of Section 5.04 to provide an unreduced (or
partially reduced, as applicable):
(a) joint and two-thirds survivor pension without guarantee then the
Member's Defined Benefit Pension shall be paid to the Member in
equal monthly instalments until the Member dies at which time
two-thirds of the amount paid to the Member shall be paid to the
Member's surviving Spouse, if any, for the remaining lifetime of
such Spouse; or
(b) joint and two-thirds survivor pension with a five year guarantee
then the Member's Defined Benefit Pension shall be paid to the
Member in equal monthly instalments until the Member dies at which
time two-thirds of the amount paid to the Member shall be paid to
the Member's surviving Spouse, if any, for the remaining lifetime of
such Spouse, provided that:
(i) if the Member dies before he has received sixty payments then
the amount payable to the surviving Spouse for the remainder
of such sixty months shall not be less than the amount payable
to the Member; and
(ii) if the Spouse dies before the Member and the surviving Spouse
have received a total of sixty payments between them then the
payments shall
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continue to the Beneficiary of the Member for the remainder of
such sixty months.
The reduction, if any, to be applied to the Defined Benefit Pension
payable to the Member shall be determined by reference to the Member's
Ancillary Value. If the Member's Ancillary Value allocated for this
purpose equals the difference in Commuted Value between an unreduced joint
and two-thirds survivor pension (with a five year guarantee if applicable)
and a joint and two-thirds survivor pension (with a five year guarantee if
applicable) that is actuarially equivalent to the mandatory form of
pension that would otherwise be payable under Section 8.04, then the
Defined Benefit Pension payable to the Member shall be unreduced. If the
Member's Ancillary Value allocated for this purpose is less than such
difference in Commuted Value, then the Defined Benefit Pension payable to
the Member shall be reduced to the extent required to ensure that the
Commuted Value of such reduced pension with its joint and two-thirds
survivor pension (and five year guarantee if applicable) is equal to the
Ancillary Value allocated pursuant to the applicable subsection (d) of
Section 5.04 plus the Commuted Value of a joint and two-thirds survivor
pension, with a five year guarantee if applicable, that is actuarially
equivalent to the mandatory form of pension that would otherwise be
payable pursuant to Section 8.04.
8.06 WAIVER OF JOINT AND SURVIVOR FORM OF PENSION
The requirement to pay a pension in the joint and survivor form pursuant
to Section 8.04 shall not apply if the Member elects an enhanced joint and
survivor form pursuant to Section 8.05 or if Member and the Spouse of such
Member execute and file with the Company a waiver in the form required
under the Act or a certified copy of a domestic contract containing such
waiver. The waiver must be filed within the time prescribed under the Act.
8.07 OPTIONAL FORMS OF PENSION
Subject to the requirement to provide a waiver if Section 8.04 applies, a
Member may, with the approval of the Company, elect to receive an
alternative pension form as follows:
(a) a life annuity guaranteed for either five (5), ten (10), or fifteen
(15) years; or
(b) a life annuity guaranteed to himself and to an individual he has
designated as a joint annuitant provided that such joint annuitant
is the Member's Spouse or the Member's dependent as defined in the
Income Tax Rules. Any benefit payable to a Member's dependent shall
not continue beyond the eligible survivor benefit
-25-
period as stated in the Income Tax Rules and shall not exceed
sixty-six and two thirds percent (66 2/3%) of the Member's benefit.
An alternative pension form will be the Actuarial Equivalent of the
pension which would otherwise have been provided under Section 8.01 or
8.04, as applicable.
ARTICLE 9
BENEFITS ON DEATH
9.01 PRE-RETIREMENT DEATH BENEFIT
If an Active Member or Disabled Member dies before beginning to receive a
pension under the Plan or if a Deferred Member dies before beginning to
receive a pension under the Plan then a pre-retirement death benefit shall
be paid to the surviving Spouse of the Member.
(a) The pre-retirement death benefit of an Active Member or Disabled
Member shall be equal to the Commuted Value of the deferred pension
calculated pursuant to Article 7 as if the Member had broken
Continuous Service immediately prior to his death. The
redetermination of the Member's Defined Benefit Pension and the
transfer of his Money Purchase Account to the Defined Benefit
Account pursuant to Section 5.03(c), (d) and (e) shall apply as of
the Member's date of death, and his Ancillary Value shall be
allocated at the time of his death pursuant to the default
allocation prescribed in Section 5.04. However, if the Member was
eligible to retire on the date of his death then the pre-retirement
death benefit shall equal the Commuted Value of the immediate
pension that would have been payable pursuant to Article 7 as if the
Member had retired immediately prior to his death. The
redetermination of the Member's Defined Benefit Pension and the
transfer of his Money Purchase Account to the Defined Benefit
Account pursuant to Section 5.03(c), (d) and (e) shall apply as of
the Member's date of death, and his Ancillary Value shall be
allocated pursuant to the default allocation prescribed in Section
5.04.
The pre-retirement death benefit in the case of a Deferred Member
shall be equal to the Commuted Value of the Member's deferred
pension.
(b) Any pre-retirement death benefit payable to a Banff Lifts Member
shall be determined pursuant to the applicable terms of Appendix A
regarding death prior to retirement.
-26-
9.02 FORM OF PRE-RETIREMENT DEATH BENEFIT
Subject to the requirements of the Act, a Spouse entitled to receive a
pre-retirement death benefit pursuant to Section 9.02 may elect to receive
the benefit in the form of:
(a) an immediate pension payable for the lifetime of the Spouse;
(b) a deferred pension payable for the lifetime of the Spouse commencing
or on the first day of any month on or after the date the Spouse
attains age fifty-five (55), but before the end of the calendar year
in which the Spouse attains age sixty-nine (69) or, if later, within
one (1) year after the death of the Member; or
(c) transfer to another registered pension plan of which the Spouse is a
Member, if that plan permits;
(d) a transfer to the Spouse's locked-in retirement account.
The form of any pre-retirement death benefit payable to a Banff Lifts
Member shall be determined pursuant to the applicable terms of Appendix A
regarding death prior to retirement.
The Spouse shall elect the form of such pre-retirement death benefits
within 90 days of receipt, from the Company, of notice of entitlement,
failing which the Spouse shall be deemed to have elected a pension with
monthly payments commencing on the first of the month coincident with or
next following the Spouse's sixty-fifth (65th) birthday.
9.03 PAYMENT TO BENEFICIARY
If a Member does not have a Spouse at the time of death then the
pre-retirement death benefit payable under Section 9.02 shall be paid to
the Beneficiary in a lump sum.
9.04 DEATH AFTER RETIREMENT
If a Retired Member dies then the death benefit, if any, shall be the
remaining monthly payments or other benefit payable in accordance with the
form of pension in effect pursuant to Article 8.
9.05 DESIGNATION OF BENEFICIARY
Subject to the Act, each Member may, from time to time, designate a person
or persons to receive the benefits which may be payable to a beneficiary
under the Plan in the event of the death of the Member. Each such
designation shall revoke all prior designations by such
-27-
Member, shall be in writing on a form provided for that purpose and filed
with the Company, and may name one or more primary beneficiaries. If the
Member has not designated a Beneficiary or such Beneficiary pre-deceases
the Member then any death benefit payable to a Beneficiary shall be paid
to the estate of the Member.
ARTICLE 10
LIMITATIONS ON BENEFITS
10.01 MAXIMUM LIFETIME PENSION AMOUNT IN YEAR OF COMMENCEMENT
Notwithstanding the other provisions of the Plan, the annual lifetime
pension payable to a Member under this Plan in the year of commencement
(including any benefit payable to a Spouse or former Spouse of the Member
pursuant to Section 18.04) (and excluding any portion of a pension
resulting solely from an actuarial increase in respect of deferral after
the Member's Normal Retirement Date, any Money Purchase Pension or Banff
Lifts Pension) shall not exceed the lesser of:
(a) the defined benefit limit for the year in which the pension
commences; and
(b) 2% of the Member's highest average compensation indexed to the year
of commencement pursuant to the Income Tax Rules;
multiplied by the Member's Credited Service. For the purposes of this
paragraph "defined benefit limit" and "highest average compensation" shall
have the meanings given to those terms under the Income Tax Rules,
Credited Service in respect of the period prior to January 1, 1992 shall
not exceed 35 years, and the phrase "defined benefit limit" in
subparagraph (a) shall be read as "2/3 or the defined benefit limit" in
respect of Credited Service granted pursuant to Section 3.04 for periods
prior to January 1, 1990 that were not previously counted as pensionable
service under a registered pension plan.
Any Banff Lifts Pension payable to a Member shall be limited by the
applicable terms of Appendix A regarding maximum retirement benefits.
10.02 MAXIMUM EARLY RETIREMENT PENSION
The maximum lifetime pension determined pursuant to Section 10.01 shall be
reduced by one-quarter of one percent (0.25%) for each complete month by
which commencement of the pension precedes the earliest of:
(a) the date the Member would attain age 60;
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(b) the date the age and early retirement eligibility service of the
Member would total 80 years; and
(c) the date the Member would accrue 30 years of early retirement
eligibility service;
if the Member continued to participate in the Plan until that date. For
the purposes of this paragraph "early retirement eligibility service" has
the meaning given to that term under the Income Tax Rules.
10.03 BRIDGING BENEFIT LIMITS
Notwithstanding the other provisions of the Plan, the annual bridging
benefit payable to a Member under the terms of this Plan shall not exceed
the maximum amount permitted under the Income Tax Rules.
The sum of the annual bridging benefit and lifetime pension payable to a
Member under the terms of this Plan for Credited Service from January 1,
1992 shall not, in the year of commencement, exceed the sum of:
(a) the defined benefit limit for the year of commencement multiplied by
the Member's Credited Service from January 1, 1992; and
(b) 25% of the average of the YMPE for the year of commencement and the
two immediately preceding years multiplied by a fraction the
numerator of which is the Member's Credited Service (not exceeding
35 years) accrued after December 31, 1991 and the denominator of
which is 35.
10.04 MAXIMUM PENSION IN YEARS FOLLOWING COMMENCEMENT
Notwithstanding the other provisions of the Plan, the annual lifetime
pension and associated bridging benefits payable under this Plan to a
Member whose benefits are indexed pursuant to Article 11 in any year
following the year of commencement (including any benefit payable to a
Spouse or former Spouse of the Member pursuant to Section 18.04) (and
excluding any portion of a pension resulting solely from an actuarial
increase in respect of deferral after the Member's Normal Retirement Date
and any Money Purchase Pension or Banff Lifts Pension) shall not exceed
the amount determined under Section 10.01 and 10.02 in the case of the
lifetime pension and under Section 10.03 in the case of the bridging
benefits, multiplied by the cumulative percentage increase in the Consumer
Price Index (as published by Statistics Canada under the authority of the
Statistics Act) from the month in which the benefit commenced to the
beginning of the current year. The annual lifetime
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pension and associated bridging benefits payable under this Plan to a
Member whose benefits are not indexed pursuant to Article 11 shall not
increase after payment commences.
Any Banff Lifts Pension payable to a Member shall be limited by the
applicable terms of Appendix A regarding maximum retirement benefits.
ARTICLE 11
INDEXING ADJUSTMENTS
11.01 ADJUSTMENT TO MEMBER'S PENSION
If a Member elects (or is deemed to elect) to apply all or part of his
Ancillary Value pursuant to subsection (e) of either Part A or Part B of
Section 5.04 to provide indexing for his Defined Benefit Pension, and
associated bridging benefits if applicable, then such pension and benefits
shall be indexed at a fixed annual rate to the extent that the Commuted
Value of the indexing is equal to the Ancillary Value allocated to provide
the indexing. Such indexing shall not exceed:
(a) in respect the period from the Member's break in Continuous Service
to the end of the month before payment of his pension commences, the
percentage increase in the Average Industrial Wage during that
period; and
(b) in respect of the period beginning with the first day of the in
which payment of his pension commences, 4% per annum.
The monthly indexed Defined Benefit Pension, and associated bridging
benefits if applicable, shall be increased effective the first day of each
January following the Member's break in Continuous Service by the addition
of an amount which is the product of:
(a) the monthly amount of such pension, and associated bridging benefits
if applicable, which is payable or being paid at the end of the
preceding year; and
(b) the annual rate of indexing determined under the first paragraph of
this Section.
In the first year of indexing only, the result shall be further multiplied
by a fraction, the numerator of which is the number of calendar months
between the commencement date of the pension and the December 31 of the
same year and the denominator of which is 12.
A Banff Lifts Pension shall be indexed pursuant to the applicable terms of
Appendix A regarding cost of living increases.
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11.02 ADJUSTMENT TO SURVIVOR BENEFIT
The monthly amount of a post-retirement survivor pension being paid to a
Spouse in respect of a deceased Retired Member's pension which was indexed
pursuant to Section 11.01 shall be indexed as follows. Such pension shall
be increased effective the first day of January in each year following
commencement of the survivor pension by the addition of an amount which is
the product of:
(a) the monthly amount of survivor pension in respect of such pension
being paid at the end of the preceding year; and
(b) the annual rate of indexing that was applicable to the Retired
Member's pension under Section 11.01.
If the Retired Member's pension on which the survivor pension is based
commenced payment later than the first day of January in the preceding
year, the result shall be further multiplied by a fraction, the numerator
of which is the number of the calendar months between the commencement
date of the Retired Member's pension and the December 31 of the same year
and the denominator of which is 12.
The adjustment pursuant to this Section shall also apply to any guaranteed
pension payments made to a Beneficiary following the death of a Retired
Member which are based on a pension that was indexed pursuant to Section
11.01.
ARTICLE 12
FUNDING
12.01 PENSION FUND
The Company shall establish and maintain a Pension Fund with a Funding
Agent pursuant to a Funding Agreement for the purpose of funding the
benefits under this Plan. The Company may amend or revoke the Funding
Agreement, remove the Funding Agent and appoint an additional and/or a
successor Funding Agent as it may deem appropriate. All contributions by
the Company and Members shall be deposited into the Pension Fund.
The Pension Fund shall contain one Defined Benefit Account, and a Money
Purchase Account for each Member who contributes pursuant to Section 14.01
as follows:
(a) Defined Benefit Account The Defined Benefit Account shall consist of
the assets in the Pension Fund not allocated to the Money Purchase
Accounts.
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(b) Money Purchase Account A separate account shall be maintained for
each Member contributing pursuant to Section 14.01 which shall
represent the portion of the Pension Fund attributable to the Money
Purchase Contributions made by the Member .
12.02 INVESTMENT OF PENSION FUND
The assets of the Pension Fund shall be invested in accordance with the
terms of the Funding Agreement, the Income Tax Rules and the Act. The
Company shall adopt a statement of investment policies and goals and the
Pension Fund shall be invested in compliance with such statement. The
Company shall direct the investment of the Defined Benefit Account and the
Members with Money Purchase Accounts shall direct the investment of their
Money Purchase Accounts in the investment options made available under the
terms of the Funding Agreement. The earnings, gains and losses arising
within each such investment option shall be determined in accordance with
the terms of the Funding Agreement and allocated to the Defined Benefit
Account and the applicable Money Purchase Accounts not less frequently
than monthly.
12.03 SOLE LIABILITY OF PENSION FUND ASSETS
Any Member or other person having any claim under the Plan must look
solely to the assets of the Pension Fund for such benefit. Neither the
Company, nor any of its directors or officers, shall be liable, in their
individual or other capacities, to any person for the payment of any
benefits under the provisions of the Plan, or under the Funding Agreement.
12.04 USE OF EXCESS ASSETS
Subject to the Act, if the assets in the Defined Benefit Account exceed
the liabilities attributable to benefits payable from that account then
the Company may, in its discretion:
(a) apply such excess assets against any funding required of the Company
as permitted under Section 13.01;
(b) receive on an ongoing basis, upon obtaining any necessary prior
approval of the applicable regulatory authorities, any portion of
such excess assets that may be refunded under the Act; or
(c) utilize such excess assets for any other purpose as the Company may
direct and as permitted under the Act and the Income Tax Rules.
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12.05 RETURN OF CONTRIBUTIONS TO AVOID REVOCATION
Any contributions made to the Pension Fund by the Company or a Member may
be returned to the Company or the Member, as applicable, together with
Credited Return thereon in the case of any Member Contributions, to the
extent such return is required to avoid revocation of the registration of
the Plan under the Income Tax Act (Canada). No monies shall be returned
without any required prior approval of the appropriate pension regulatory
authorities and with such reporting for tax purposes as may be required
under the Income Tax Rules.
ARTICLE 13
COMPANY CONTRIBUTIONS
13.01 COMPANY CONTRIBUTIONS TO DEFINED BENEFIT ACCOUNT
The Company shall, from time to time as required by the Act and the Income
Tax Rules, make quarterly contributions to the Defined Benefit Account of
such amounts which, based on the advice of the Actuary, are required to
provide an appropriate level of funding for the benefits payable from the
Defined Benefit Account in respect of the following:
(a) the normal actuarial cost of defined benefits currently accruing to
Members in accordance with the provisions of the Plan; and
(b) for the proper amortization of any unfunded actuarial liability or
solvency deficiency in relation to the Defined Benefit Account;
both in accordance with requirements of the Act, after taking into account
the assets of the Pension Fund, the earnings thereon, and all other
relevant factors.
If at any time, while the Plan continues in existence, the Actuary
certifies that the assets of the Fund exceed the actuarial liabilities of
the Plan in respect of benefits defined in the Plan, such excess assets or
any portion of such assets may be used by the Company to reduce its
contribution obligation under this Section.
13.02 REMITTANCE OF CONTRIBUTIONS
The Company shall remit to the Funding Agent for deposit in the Fund
within thirty (30) days after the period on which they are due, as
recommended by the Actuary in the last actuarial report filed in
accordance with the Act.
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ARTICLE 14
MEMBER CONTRIBUTIONS
14.01 MEMBER CONTRIBUTIONS
An Active Member or Disabled Member may elect to contribute to his Money
Purchase Account. Such Member contributions shall be made by way of
payroll deduction in the case of an Active Member. A Member may elect to
continue to contribute during a Leave of Absence for which Credited
Service accrues pursuant to Section 3.02, or during a period of Total
Disability for which Credited Service accrues pursuant to Section 3.03 and
in such case the contributions shall be made by way of direct payment from
the Member to the Company subject to such rules as the Company may
prescribe.
14.02 AMOUNT OF MEMBER CONTRIBUTIONS
A Member who elects to contribute to his Money Purchase Account shall
select the level of such contribution which shall be a percentage of his
eligible earnings set at a whole or half integer. A Member's contributions
shall not, in a calendar year, exceed the lesser of (a) and (b) below:
(a) the lesser of:
(i) the money purchase limit for the year; and
(ii) 18% of the Member's Earnings for the year.
For the purposes of this subsection, "money purchase limit" shall
have the meaning given to that term under the Income Tax Rules; and
(b) the amount of pension credit that the Member would have received for
accrual of a defined benefit pension pursuant to the formula in
Section 5.03(a) without the offset under Section 5.03(b)
14.03 MANNER AND FREQUENCY OF ELECTING CONTRIBUTION RATE
A Member who wishes to elect to contribute and select the level of such
contributions shall complete the forms prescribed by the Company and such
election shall be effective as of the date prescribed by the Company. An
Employee who fails to make such election shall be deemed to have elected
to make no contributions.
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An Active Member or Disabled Member who is contributing to the Plan may
revoke the election or change the level of contribution once in each
calendar year. An Active Member or Disabled Member who is not contributing
to the Plan may elect to contribute once in each calendar year. Any
change, election or revocation shall be made not later than 30 days before
the end of the calendar year and shall be effective on the first day of
the next calendar year.
14.04 REPAYMENT OF EXCESS MONEY PURCHASE CONTRIBUTIONS
If the contributions to a Money Purchase Account in respect of a Member
for a calendar year exceed the limit set out in Section 14.02, the excess
portion shall be repaid to the Member, subject to any required prior
approval of a regulatory authority. Following such repayment, the balance
of the Money Purchase Account shall be adjusted to reflect this reduction.
Such repayment shall be made no later than the last day of February in the
year following the year in which the excess arose.
14.05 INTEREST CREDITED ON MEMBER CONTRIBUTION TO DEFINED BENEFIT PROVISION
In respect of the Member contributions and/or qualifying transfers made in
accordance with Section 3.04, an account for these monies shall be set up
and credited at each Plan Year end with any investment earnings net of all
investment expenses incurred in the operation of the Defined Benefit
Account (herein referred to as the net rate of interest). The net rate of
interest shall be computed by valuing all investments of the Defined
Benefit Account at their market value. As such, the net rate of interest
includes all interest and dividend income of the Defined Benefit Account
and all realized and unrealized capital gains and losses on the
investments of the Defined Benefit Account from the first of the month
following the date of payment into the Defined Benefit Account to the
month end prior to the date of payment of a benefit in respect of such
contributions.
Member contributions, including qualifying transfers if any, with interest
in excess of fifty (50%) percent of the Commuted Value of the pension
benefit that has accrued to the Member, shall be paid in cash to the
Member upon the retirement or termination of service of the Member.
Member contributions, including qualifying transfers if any, with interest
in excess of fifty (50%) percent of the Commuted Value of the pension
benefit that has accrued to the Member, shall be paid in cash to the
Member's Spouse or if no Spouse paid to the Member's Beneficiary upon the
death of the Member prior to retirement.
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ARTICLE 15
ADMINISTRATION
15.01 ADMINISTRATOR
The Company shall be the administrator of the Plan for the purposes of the
Act and the Income Tax Rules. The Company shall decide all matters and
questions in respect of the operation, administration and interpretation
of the Plan. As such, the Company shall be entitled to determine
conclusively a Member's eligibility, Earnings and periods of continuous
employment, membership or service or Credited Service. All interpretations
and decisions shall be applied as nearly as may be possible in a uniform
manner to all Members similarly situated.
The Company shall maintain, or cause another person to maintain, such
records and data as the Actuary may require for the purpose of completing
actuarial valuations and estimates of required contributions.
The Company shall be entitled to rely conclusively upon all tables,
valuations, certifications, opinions and reports which shall be furnished
by an Actuary, accountant, legal counsel or other professional person who
shall be employed or engaged for such purposes.
15.02 ACTUARIAL PROCEDURE AND ASSUMPTIONS
The Company shall from time to time appoint an Actuary, to serve at the
pleasure of the Company, who shall provide technical advice in all matters
in connection with the Plan requiring actuarial computations and
valuations. The Company shall from time to time, in consultation with the
Actuary, adopt such rates of interest and mortality, service and other
tables as may be required in connection with the administration of the
Plan whether in connection with computations of benefits, contributions by
the Company, or otherwise. On the basis of such tables as the Actuary may
adopt, the Actuary shall make a triennial valuation of the assets and
liabilities of the Plan and such intermediate valuations as the Company
may direct.
15.03 ADMINISTRATION EXPENSES
Any expenses arising in respect of the administration of the Plan and
Pension Fund, but limited to the fees and other expenses and charges of
any Actuary, auditor or agent employed by the Company in connection with
the Plan's or Pension Fund's administration may be paid from the Pension
Fund.
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15.04 LIMITATION OF LIABILITY AND INDEMNITY
The Company shall save harmless any employees who are involved in the
administration of the Plan from the effects and consequences of their
acts, omissions and conduct in their formal capacity to the extent
permitted by law, except for their own willful and intentional malfeasance
or misconduct.
15.05 PURCHASE OF ANNUITIES
Pension benefits shall normally be paid from the Pension Fund, however,
the Company may arrange to purchase an annuity or annuities to provide
some or all of such pension benefits.
15.06 REQUIREMENTS FOR PAYMENT OF BENEFITS
A pension or an annuity under the Plan shall be granted by the Company
only upon application in the manner prescribed by the Company, and after
submission of satisfactory proof of age of the Member and, if applicable,
of the Spouse or joint annuitant.
Age may be proved by an official birth certificate issued by the
appropriate public authority. If the Member is unable to obtain an
official birth certificate, evidence of age satisfactory to the Company
must be produced.
Payment of any benefit under the Plan other than a pension or annuity
shall be made only upon application in the manner prescribed by the
Company and upon submission of any relevant supporting evidence as the
Company in its discretion may require.
Any person receiving or claiming a pension or an annuity under the Plan
shall, on request of the Company, furnish to the Company satisfactory
evidence of his continuing right thereto.
Notwithstanding anything in the Plan to the contrary, no cash settlement
shall be paid under the terms of the Plan where such payment would be
contrary to the provisions of the Act and the Income Tax Rules.
15.07 TIMING OF PAYMENT OR TRANSFER
Where a Member becomes entitled to receive a refund of his Money Purchase
Account, or to have a benefit paid from the Plan in a lump sum or
transferred from the Plan, the payment of the balance of the Money
Purchase Account, or the payment or transfer of the benefit as the case
may be, shall be made within 60 days after the event giving rise to the
payment or transfer, or the completion and filing of all documents
required to authorize the
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making of the payment, including any evidence required under Section 15.06
whichever is later.
15.08 ANNUAL LISTING OF ACCOUNT TRANSFERS
Following the end of each fiscal year, the Company shall provide to Canada
Revenue Agency a listing of each Member whose Money Purchase Account was
transferred to the Defined Benefit Account during the fiscal year, along
with confirmation whether any portion of such Money Purchase Account was
transferred elsewhere.
ARTICLE 16
DISCLOSURE
16.01 PLAN SUMMARY
The Company shall provide each Employee eligible for membership within
sixty (60) days his date of employment with:
(a) a written explanation of the terms and conditions of the Plan
applicable to him;
(b) a written explanation of his rights and obligations in respect of
the Plan; and
(c) any other information required by the Act and the Income Tax Rules.
16.02 NOTICE OF AMENDMENT
The Company shall provide each Member, Former Member or other person, who
is or will be affected by an amendment made to the Plan, with a written
explanation of such amendment within sixty (60) days after the
registration of the amendment. If the requirement of providing such
written explanation within the above period is dispensed with in
accordance with the Act, the Company may provide the explanation with the
next annual statement.
16.03 ANNUAL STATEMENT
The Company shall provide each Active Member with an annual statement and
a statement on his retirement or termination of Continuous Service, and a
statement shall be provided to the surviving Spouse or Beneficiary on the
death of a Member other than a Retired Member. Each such statement shall
contain the information prescribed under the Act. Further, the Company
shall provide a Member or other person entitled to payment from the Plan
with such other information as may be required by the Act. If any
statement made in such
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explanation conflicts with the provisions of the Plan, the provisions of
the Plan shall govern.
16.04 INSPECTION OF DOCUMENTS
A copy of the Plan and any other information required to be made available
by the Act shall be made available within thirty (30) days of the written
request by any person entitled to a benefit under the Plan or the person's
authorized agent, at the person's current or former place of employment or
such other location as may be agreed upon by the Company and such person.
Any person entitled to inspect Plan documents in accordance with this
Section shall be entitled to make such inspection only once in each
calendar year.
16.05 OTHER INFORMATION
The Company shall provide such other information regarding the Plan as is
required by the Act and the Income Tax Rules.
16.06 LIMITATION
Such explanation, statement or other information provided shall have no
effect on the rights or obligations of any person under the Plan and shall
not be referred to in interpreting or giving effect to the provisions of
the Plan. The Company shall not be liable for any loss or damage claimed
by any person to have been caused by any error or omission in such
explanation, statement or other information.
ARTICLE 17
FUTURE OF THE PLAN
17.01 POWER TO AMEND
The Company reserves the right to amend or discontinue the Plan, either in
whole or in part, at any time or times, subject to the Income Tax Rules
and the provisions of the Act. Without limiting the generality of the
foregoing, such right to amend shall include the right to merge the Plan
with another pension plan or plans, to divide the Plan, to transfer assets
from the Pension Fund to the pension fund of another registered pension
plan which assumes liabilities from the Plan, or to convert the Plan to a
money purchase pension plan.
17.02 NO REDUCTION IN BENEFITS
No amendment to the Plan shall operate to reduce the amount or the value
of the benefits which have accrued to Members prior to the date of such
amendment, provided that the
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Plan may be amended to reduce benefits payable under the terms of the
Plan, or to return contributions, where such amendment is necessary to
avoid the revocation of the registration of the Plan under the Income Tax
Act (Canada) and prior approval has been granted by the applicable
provincial regulatory authorities.
If the Plan is terminated, the Company shall not be obligated to make any
further contributions to the Plan with respect to service after the date
of such termination of the Plan except as required under the Act.
17.03 APPLICATION OF ASSETS ON TERMINATION
If the Plan is terminated or otherwise discontinued, all Members will be
100% vested in the Defined Benefit Pension and Banff Lifts Pension accrued
to the date of termination and the assets of the Defined Benefit Account,
after providing for the expenses of the Plan attributable thereto, shall
be applied, to the extent sufficient, to provide for the accrued Defined
Benefit Pensions and Banff Lifts Pensions of Members, Spouses and
Beneficiaries as determined by the Company, on the advice of the Actuary
and subject to the requirements of the Act.
The Money Purchase Account of a Member affected by the termination shall
be transferred to the Defined Benefit Account to eliminate the Money
Purchase Pension offset pursuant to Section 5.03 or transferred out of the
Pension Fund pursuant to Section 6.05 or 7.05, as elected by the Member.
If the assets of the Defined Benefit Account are insufficient to fully
provide for all accrued Defined Benefit Pensions and Banff Lifts Pensions
attributable thereto and a solvency deficiency, as defined under the terms
of the Act, exists when the Plan is terminated, the Company shall amortize
such solvency deficiency in accordance with the Act. If due to insolvency
the Company is unable contribute all amounts required under the Act, then
the assets of the Defined Benefit Account shall be applied to provide
benefits for affected Members, Spouses, and Beneficiaries on a pro rata
basis in accordance with their respective interest in the Plan as
determined by the Company, on the advice of the Actuary and in a manner
approved by the Alberta Superintendent of Pensions. Payment of the accrued
Defined Benefit Pensions and Banff Lifts Pensions of Members, Spouses and
Beneficiaries shall be made in accordance with the Act.
Any surplus assets which remain in the Defined Benefit Account after the
satisfaction of all accrued defined benefits as set out above shall be
returned to the Company. Any distribution of funds will be conditional
upon the prior approval of the applicable regulatory authorities.
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17.04 APPLICATION OF ASSETS ON PARTIAL TERMINATION
If the Company's participation in the Plan is partially terminated, all
Members affected by the partial termination will be 100% vested in the
Defined Benefit Pension and Banff Lifts Pension accrued to the date of
partial termination and a portion of the Defined Benefit Account shall be
allocated in respect of that part of the Plan which is being terminated.
The portion of the Defined Benefit Account to be allocated shall be
determined by the Company in an equitable manner on the advice of the
Actuary subject to the Act. Such portion of the Defined Benefit Account
shall be applied in accordance with the provisions of Section 17.03 for
the benefit of the Members, Spouses and Beneficiaries affected by the
partial termination.
If the assets of the Defined Benefit Account allocated to the partial
windup are insufficient to fully provide for all accrued Defined Benefit
Pensions and Banff Lifts Pensions of Members affected by the partial
windup and a solvency deficiency, as defined under the terms of the Act,
exists in respect of the partial termination, the Company shall amortize
such solvency deficiency in accordance with the Act. If due to insolvency
the Company is unable contribute all amounts required under the Act then
the assets of the Defined Benefit Account allocated to the partial windup
shall be applied to provide benefits for affected Members, Spouses, and
Beneficiaries on a pro rata basis in accordance with their respective
interest in the Plan as determined by the Company, on the advice of the
Actuary and in a manner approved by the Alberta Superintendent of
Pensions. Payment of the accrued Defined Benefit Pensions and Banff Lifts
Pensions of Members, Spouses and Beneficiaries shall be made in accordance
with the Act.
Any surplus assets remaining from such allocated portion after the
satisfaction of all accrued benefits of all persons affected by the
partial termination shall be paid to the Company or applied as the Company
may otherwise direct. Any such distribution shall be conditional upon
prior approval of the applicable regulatory authorities.
The Money Purchase Accounts of Members affected by the partial termination
shall be allocated to the partial termination and transferred to the
Defined Benefit Account to eliminate the Money Purchase Pension offset
pursuant to Section 5.03 or transferred out of the Pension Fund pursuant
to Section 6.05 or 7.05, as elected by the Member.
17.05 PROVISION OF BENEFITS ON WINDUP
The benefits determined in accordance with the provisions of Section 17.03
or 17.04 may be provided by means of:
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(a) the purchase of annuity contracts from a company or companies
licensed to provide annuities in Canada;
(b) the transfer of benefits to registered pension plans which meet the
requirements prescribed under the Act and which are willing to
accept such transfers, registered retirement savings plans or
registered retirement income funds;
(c) the continuation of the Pension Fund; or
(d) the payment of cash refunds;
all as determined by the Company, subject to the requirements of the Act.
17.06 NO LIABILITY FOR APPLICATION ON WINDUP
No liabilities shall attach to the Employer or to the liquidator or
trustee in bankruptcy, as the case may be, in connection with any
application of the pension funds in accordance with the provisions of this
Article 17 provided such application was made in good faith and in
accordance with the provisions of the Act and the Income Tax Rules.
ARTICLE 18
MISCELLANEOUS PROVISIONS
18.01 NON ALIENATION OF BENEFITS
Except as specifically provided in Section 18.04, benefits payable under
the Plan may not be assigned, charged, anticipated, surrendered, commuted
or given as security and any attempt to do so shall be void. Except as
provided under the Act no benefit payable under the Plan shall be in any
manner liable for, or subject to, execution, seizure or attachment or
liable for, or subject to, the debts, contracts, or liabilities of the
person entitled to such benefit.
18.02 RIGHTS OF MEMBERS
Nothing in the Plan shall be deemed to give any Employee the right to be
retained in the employ of the Company and the provisions of the Plan shall
not interfere with the rights of the Company to discipline its employees.
18.03 SMALL PENSIONS
If the annual amount of Defined Benefit Pension and Banff Lifts Pension
payable to a Deferred Member or Retired Member at the Member's Normal
Retirement Date is less than 4% of the YMPE in the year that such Member
breaks Continuous Service or if the
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Commuted Value of a benefit payable to a Member when he breaks Continuous
Service or of a benefit payable to a Spouse on the death of a Member is
less than 20% of the YMPE in that year, then the Member or Spouse, as
applicable, may elect to receive that Commuted Value in a lump sum in
satisfaction of his entitlement under the Plan. In lieu of a lump sum, the
Member or Spouse, as applicable, may elect to transfer, to the extent that
the Income Tax Rules allow, the Commuted Value to an unlocked registered
retirement savings plan.
18.04 MARRIAGE BREAKDOWN
Subject to the Act, when an order from a court of competent jurisdiction
requiring division of the benefits of a Member with a Spouse or former
Spouse due to breakdown of marriage has been received by the Company, such
division shall be made in accordance with such order, as determined by the
Company and subject to the limitations and requirements of the Act and
applicable provincial family relations legislation. A Member's benefit
entitlement shall be adjusted to the extent required to reflect such
division. When a Member becomes entitled to exercise the options available
under Section 7.05, a Spouse or former Spouse entitled to a division of
benefits pursuant to this Section shall also be entitled to exercise the
options available under Section 7.05 in respect of the portion of the
benefit allocated to the Spouse, subject to the requirements of the Act.
Where permitted under the Act, a Spouse entitled to a division under this
Section may exercise the options available under Section 7.05 in respect
of the portion of the benefit allocated to the Spouse at the time of such
division.
18.05 DIMINISHED LIFE EXPECTANCY
Notwithstanding the locking-in provisions of the Plan and the provisions
of Section 18.01, if a Member provides evidence to the Company that his
life expectancy is considerably shortened by reason of a terminal illness
or a disability, the Company may permit payment of the Commuted Value of
the Member's benefit in a lump sum or may provide for payment of the
benefit in quarterly or annual instalments.
18.06 LAWFUL CURRENCY
All contributions and benefit payments under this Plan shall be made in
the lawful currency of Canada.
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18.07 LIMITATION OF RECOURSE
No Member, retired Member, Former Member, Beneficiary, Spouse or joint
Annuitant, shall have any recourse under any provisions of this Plan
against any past, present or future director, officer, shareholder or
Employee of the Company and all such directors, officers, shareholders and
Employees shall be free from all liability hereunder as a condition
hereof.
18.08 PENSION INCREASES
The Company may from time to time in its discretion elect to grant
increases in pensions for the purpose of offsetting, in whole or in part,
increases in the cost of living. Such increases may be granted to Retired
Members, Spouses or Beneficiaries, or may be applied to any deferred
pension entitlements of Deferred Members but shall not be granted in
respect of the twelve (12) month period immediately following the date of
retirement, death, or termination. Such increases once granted shall not
be discontinued. The fact of granting of increases pursuant to this
sub-Article, if any, shall not obligate the Company to grant further
increases in the future. Any pension increase must be in accordance with
the Act and the Income Tax Rules.
18.09 HEADINGS
The division of this Plan into Articles and Sections and the insertion of
headings are for convenience of reference only and shall not affect the
construction or interpretation of this Plan.
18.10 GENDER
Words importing the singular include the plural, as appropriate, and
vice-versa; words importing the masculine gender include the feminine
gender.
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APPENDIX A
BANFF LIFTS PLAN
This Appendix contains the text of the Pension Plan for the Employees of Banff
Lifts Ltd. as it read on December 31, 1999. Relevant terms of the Banff Lifts
Plan shall apply to Banff Lifts Members in respect of the Pensionable Service
that they accrued under the terms of the Banff Lifts Plan to December 31, 1999.
For the purposes of this Appendix, the Retirement Plan for Management Employees
of Brewster Transport Company Limited shall be referred to as the Brewster
Transport Plan.
The relevant terms of the Banff Lifts Plan are listed below:
- - Applicable definitions that are used in relevant provisions of Articles 4,
5, 6, 7, 8 or 9
- - The provisions of Article 4 regarding voluntary contributions and the
deposit of a refund from another plan to the extent that such
contributions or deposits have occurred by December 31, 1999. No further
contributions or deposits are permitted after December 31, 1999.
- - The provisions of Article 5 (early retirement)
- - The provisions of Article 6 (determination of amount of retirement
benefit)
- - The provisions of Article 7 (pre-retirement death benefits)
- - The provisions of Article 8 (termination of employment)
- - The provisions of Article 9 (forms of retirement benefits)
- - Appendix 1 (listing of pensionable service)
Notwithstanding the above, effective January 1, 2000, certain provisions of the
Banff Lifts Plan shall be interpreted as follows:
1. Subsection 2.1 "Commuted Value" shall mean the definition of Commuted
Value as stated in Section 1.09 of this Plan.
2. Subsection 2.1 "Spouse" shall mean the definition of Spouse as stated in
Section 1.37 of this Plan.
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3. Subsection 2.1 "Defined Benefit Limit" has the meaning given under the
provisions of the Income Tax Act of Canada and the Regulations thereunder
as they apply to registered pension plans.
4. Section 18.04 "Marriage Breakdown" of this Plan shall be applied with
respect to the appropriate benefits of the Banff Lifts Plan.
5. References to "5 years of Continuous Service" or "5 years of continuous
service" throughout the Banff Lifts Plan shall mean "2 years of Continuous
Service".
6. Reference to "the first day of the month following attainment of age 55"
in subsection 5.2 shall mean "the first day of the month coincident with
or following attainment of age 50" and the phrase "who has completed at
least 5 years of Continuous Service" shall be deleted.
7. Reference to "seventy-first (71st) birthday in subsection 5.3 shall mean
"sixty-ninth (69th) birthday".
8. Reference to "reduced by 1/2%" in subsection 6.2 shall mean "reduced by
five-twelfths of one percent (5/12%).
9. The following words are added to the end of the paragraph in Section 6.2:
", provided that such reduction shall not result in a pension that has a
value less than the Actuarial Equivalent Value of the Member's accrued
pension payable at the Member's normal retirement date."
10. Subsection 6.5 shall mean "A Member who is entitled to a pension in
accordance with the provisions of Sections 5 and 6 shall be eligible to
transfer the Commuted Value of his pension on a similar basis as those
options and requirements as described in Section 6.05 of the Brewster
Transport Plan.
11. Reference to "age 55" in subsection 8.3 shall mean "age 50".
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