TO ALL AIR CANADA IAMAW MEMBERS
IAM MULTI-EMPLOYER PENSION PLAN (MEPP)
Dear Brothers and Sisters,
The IAMAW is very pleased to announce to all of our Air Canada members in the IAM Multi-Employer Pension Plan (MEPP) that your Union has concluded a Memorandum of Agreement with Air Canada that will allow for the buy-back of pensionable service in the MEPP under specific circumstances as well as a one-time option for members to choose to include their overtime earnings in the MEPP to increase their final pension benefit. This MOA is effective as of January 1, 2017.
The Service buy-back MOA is designed to mirror the service buy-back provisions of the Air Canada legacy Defined Benefit pension plan to the greatest extent possible and provides for the payment of both employee and employer contributions to the MEPP.
Specifically the MOA allows for the purchase of MEPP service while on an approved LOA from Air Canada for either maternity, paternity, childcare or adoptive leave, child hospitalization and care and support of a critically ill child leave, compassionate care leave, leave related to the death or disappearance of a child, work related illness and injury leave, Workers Compensation (WCB) and periods receiving benefits from the Group Disability Income Plan (GDIP).
When a member is absent from work on any of these approved leaves, they will be notified as to their ability to buy-back their MEPP service for the period of their absence and the cost of the buy-back. Members have a period of ninety (90) days after their return to work to submit the required application form to the MEPP fund office if they wish to buy-back their MEPP service.
Upon the member’s return to work they will have the option to purchase their service either through a lump sum payment of the full amount or through a series of increased pension contributions from their paycheque.
Members who are currently absent from work on one of these qualifying leaves will be offered the ability to purchase their MEPP service in accordance with the terms of this MOA.
All current Air Canada members of the MEPP will be offered a one-time option to make contributions on their overtime earnings throughout their career. Members will receive an election form to include their overtime earnings by March 31, 2017. Members will have ninety (90) days from the date of receipt of their election forms to return them to the MEPP fund office. New members will be given the option to include their overtime at their date of joining the plan.
The member’s election to include or exclude contributions on their overtime earnings is a one-time irrevocable choice that will be in effect for the balance of their career at Air Canada.
Christopher Hiscock, Chairman,
IAMAW Pension Committee