HEB Manitoba

Frequently Asked Questions About the Pension Plan Changes

• I am retired. Will these changes affect my pension?

  No. These changes will not affect your monthly pension payments.

• I will reach Rule of 80 after Dec. 31, 2019. Is there any way to avoid the actuarial reduction?

  Yes. If you choose to retire at age 55 or older, you will add extra years of earnings, gain more credited service, and avoid the actuarial reduction completely.
  
  The actuarial reduction will only apply to your pension if you are a current employee and you:
  

  • Reach Rule of 80 after Dec. 31, 2019 AND
  • Are under age 55 when you reach Rule of 80 AND
  • Retire before age 55.

  The closer you are to 55 when you retire, the smaller your actuarial reduction will be. If you retire at age 55+, no actuarial reduction will apply.

• What is Rule of 80?

  Rule of 80 is when  your age plus years of employment service totals 80. It used to be called Magic 80.
  
  If you are a current member, you can retire at any age when you reach Rule of 80:
  

  • If you reach Rule of 80 before January 1, 2020, your pension will be unreduced.
  • If you reach Rule of 80 after December 31, 2019 your pension will be reduced or unreduced depending on your age when you retire:
    • If you are under age 55, your pension will be actuarially reduced
    • If you are age 55+, your pension will be unreduced.

  
  

• What if I turn 60 before I reach Rule of 80?

  You are entitled to an unreduced pension when you reach Rule of 80 or age 60 -- whichever comes first. 
  
  If you turn 60 before you reach Rule of 80, you do not need to wait until you reach Rule of 80. You can retire with an unreduced pension at age 60.

• Why did I get two letters?

  If you received more than one letter, it means you have two open pension careers with HEB Manitoba.
  
  For example:
  

  • You might have a deferred HEPP pension from a career that ended six years ago AND an active Pension Plan membership for employment that began a year ago

  • You might be receiving your own HEPP pension AND a portion of a former spouse's HEPP pension

  • You might be an active Plan member AND receiving a portion of a former spouse's HEPP pension.

  
  

• What is considered to be a termination?

  A termination is any non-retirement departure from the Plan. 
  
  This includes leaving employment with a Participating Employer, leaving the Plan without retiring, or dying before you retire.

• Why is the HEPP Board making changes to the Plan?

  The changes taking effect January 1, 2018 and January 1, 2020 will support the Plan’s continuing ability to meet its objectives and provide all current and future retirees with sustainable, stable and secure pensions for their retirement years. 

• Will these changes help ensure the Plan can provide a pension for future retirees?

  We are changing the Plan exactly for that reason: to ensure the Plan is adequately funded so it can provide for the future pension promises it has in place.

  The Plan’s assets are significant and the Plan is nearly fully funded; however, the Plan’s liabilities continue to grow quickly. Without change, this increase would eventually outpace the growth of the Plan’s assets. These changes ensure that the Plan’s structure and terms support its long-term sustainability.

• Are these changes the result of poor investment decisions?

  No. HEPP has experienced above-average investment results over the life of the Plan.

• How is the Pension Plan governed?

  The Healthcare Employees’ Pension Plan (HEPP) is governed by an independent, 12-member Board of Trustees with equal representation from healthcare-related unions and participating employers. 
  
  The Trustees act on behalf of the beneficiaries of the Plan to manage and invest the assets of the Plan.