BASE RATE - is the interest rate used in the calculation of the Plan Annuity Factor. See the Sample Plan Annuity Table for an estimate of Plan Annuity Factors.
BASIC SALARY - is the regular gross salary applicable to an Employee's rank or classification excluding other income such as overtime, supplementary payments or sessional payments paid to Full-time Appointees. For part-time employees, the Basic Salary is is quotient obtained by dividing the Employee's regular gross salary by the part-time ratio.
BENEFICIARY - is the person who will receive the survivor benefit of your pension benefit if you die.
CREDITIED SERVICE - refers to the number of years and part years you have contributed to the Plan.
DEFINED BENEFIT - is a term used to describe a pension where the amount you receive is based on how many years you have worked and the salary you have earned.
DEFINED CONTRIBUTION - is a term used to describe a pension plan where Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts plus any investment income on the money in the account.
EARLY RETIREMENT DATE - for purposes of the Plan is the first day of any month following your 55th birthday.
EMPLOYEE CONTRIBUTION ACCOUNT - consists of your required contributions, plus investment income.
FORM OF ANNUITY PAYMENT - If you elect to receive your pension benefit from the Plan, you may elect a form of annuity payment, either a Life Certain or Joint and Survivor that best suits your needs subject to the requirements of the Canada Revenue Agency and the Manitoba Pension Benefits Act. If you have a spouse when you retire, you must elect as a minimum a Joint and 60% Survivor form of pension. If you want to receive a form of pension that guarantees your spouse less than 60% of your monthly pension for life, then your spouse must sign a Spousal Waiver form waiving this requirement. Each form of annuity payment provides a different benefit to the member or the survivor or the beneficiary. All pensions are for your lifetime.
FORMULA PENSION - is your pension based on a formula using your earnings and years of employment while a member of the Plan.
HIGHEST AVERAGE ANNUAL BASIC SALARY - refers to the average of your highest five years (five periods of 12 months each) of basic salary.
INVESTMENT INCOME - includes interest payments and dividends, realized capital gains, realized capital losses, the change positive or negative in unrealized gains minus expenses.
JOINT AND SURVIVOR ANNUITY - Under this form of annuity payment, pension income is received throughout the lifetime of both spouses. Payments continue after the death of the first spouse and stop only after the death of the second. You may choose a form which provides for a reduction in the monthly amount after your death only, or after the first death of either you or your spouse.
LIFE INCOME FUND (LIF) - is an alternative arrangement to a lifetime annuity from which an adjustable flow of retirement income is received, subject to an annual minimum and maximum.
LIFETIME ANNUITY - provides you with a steady stream of income over your lifetime. The amount of income is based on the amount invested, your current age, expected longevity and interest rates at the time you purchase the annuity.
LOCKED-IN - means your pension benefit entitlement continues to be subject to pension legislation requirements for pension sharing, survivor and death benefits, and may only be used to provide retirement income (i.e., you cannot get a cash refund).
LOCKED-IN RETIRMENT ACCOUNT (LIRA) - means an account with a financial institution, similar to a Registered Retirement Savings Plan (RRSP), that is approved by the Pension Commission of Manitoba to receive locked-in pension funds.
NON-LOCKED-IN - means your pension benefit entitlement is not subject to any pension legislation requirements and you can receive your benefit as a lump-sum, taxable cash payment or as a transfer to your Registered Retirement Savings Plan (RRSP) on a tax-sheltered basis.
NORMAL FORM - The normal form of pension is a Life 60 months certain. This type of annuity payment provides you with lifetime income. However, should your death occur before 60 payments have been made, the monthly payments will continue to your beneficiary until a total of 60 payments have been made to you or your beneficiary. You may choose a longer "certain" (guarantee period). The guarantee period may be 60, 120 or 180 months.
NORMAL RETIREMENT DATE - for the purposes of the Plan is the first of the month next following your 65th birthday.
PENSION BENEFITS ACT - mean the Pension Benefits Act of the Province of Manitoba and includes the Regulations
PENSION FUND - is the fund established pursuant to the Plan and from which benefits to Members, Pensioners, beneficiaries and joint annuitants are provided.
PLAN ANNUITY - is the monthly pension amount that the total value of your contribution accounts at retirement will provide.
PLAN ANNUITY FACTOR - is a life annuity factor taking into account, the Base Rate, a certain (guaranteed) period of 5 years and unisex mortality.
REGISTERED PENSION PLAN (RPP) - an RPP is a pension plan that provides benefits for an employee upon retirement, death, or termination of employment. The University of Manitoba Pension Plan (1993) is registered with Canada Revenue Agency and the Manitoba Pension Commission and must comply with the provisions outlined in both the Manitoba Pension Benefits Act and the Canadian Income Tax Act.
REGISTERED RETIREMENT SAVINGS PLAN (RRSP) - is an individual retirement savings plan that has been registered with the Canada Revenue Agency (CRA). The CRA permits tax deductible contributions to an RRSP, and income earned in the plan is exempt from tax until money is withdrawn from the plan. CRA will advise you of your "available contribution room" that you can contribute to your RRSP when you receive your latest notice of assessment.
SPOUSE/COMMON-LAW PARTNER - means the person your are married to and living with, or the person you have: registered a common-law relationship with under the Vital Statistics Act, or cohabitated with in a conjugal relationship: for a period of at least three years, if either of you is married, or for a period of at least one year, if neither of you is married.
SUPPLEMENTARY PENSION - is the amount by which your Formula Pension is greater that your Plan Annuity
UNIVERSITY CONTRIBUTION ACCOUNT - consists of the University contributions made on your behalf, plus investment income.
YEAR'S BASIC EXEMPTION (YBE) - is fixed at $3,500. It is the level of annual earnings below which contributions are not required by the Canada Pension Plan.
YEAR'S MAXIMUM PENSIONABLE EARNINGS (YMPE) - is a figure set by the Federal government each year to help determine Canada Pension Plan (CPP) contribution amounts.