Getting to know CWIPP

CWIPP is Canada’s a flexible pension plan built for unions, providing members with a secure and predictable monthly retirement income for life.

Our mission is to help create retirement financial security for our members, to contribute to their financial wellbeing, and to that of their families and communities.

CWIPP has strong financial management with a proven long-term diversified investment strategy and a robust funding policy. Exceptional plan experience that keeps all participating unions, employers, and plan members informed and up to date, CWIPP is an ideal pension solution that provides Canadians with a predictable pension income for life.

Why choose CWIPP?

CWIPP is a flexible pension plan built for unions with flexible plan features for union/employer groups anywhere in Canada. Members receive a predictable monthly retirement income for life.

With an exceptional plan experience that keeps all participating unions, employers, and plan members informed and up to date, CWIPP is an ideal pension solution that provides Canadians with a predictable pension income for life.

You’re in the right place to learn more about this innovative pension solution!

Target Benefit (TB) plan

CWIPP is a combination-type plan with pre-set employer contribution formulas and target monthly pensions that plan members receive at retirement.

The assets in the plan are pooled and professionally managed and longevity risks are pooled across plan members and shared collectively. Contributions rates do not vary based on plan funding — they can, however, change through bargaining.

The plan does not provide a benefit-level guarantee. Pensions are paid for life but the amount could change — up or down — depending on plan funding.

Hybrid Pension Plan Structure

Pre-set employer contribution formulas
Contribution rates remain fixed
May change through bargaining

Assets pooled across all members
Professionally managed investments
Longevity risk shared collectively

Formula determines expected monthly pension
Pension paid for life
Amount may adjust depending on plan funding

Plan Goal

Maintain a stable and predictable lifetime pension for all plan members over the long term.

Increases the value of union membership, loyalty and engagement

Pension designs can be adapted to the needs of each Local, with optional features that enhance benefits without adding complexity; and, building confidence in the plan’s long-term financial security also further strengthens commitment from both members and employers.

Expert guidance

Be it bargaining, benefits structures, or plan decisions, our expert team is available to assist.

A lasting union legacy

A visible expression of the union’s role as guardian of members’ futures, groups in CWIPP can retain their own identity, keeping members connected to the union beyond their working years: increases solidarity across generations, links active members, retirees, and future hires through one group pension plan.

It’s a simple, cost-efficient retirement solution for employers

Do the set-up, funding and administration costs of implementing a conventional plan place it out of reach? CWIPP might make it possible:

no commissions or agents’ fees
flexible defined benefit plan
design a fixed employer contribution rate for both benefit and administrative expenses
acceptance of assets from existing non-contributory plans
low-cost centralized administration

Benefit increases can occur regularly based on experience

CWIPP Trustees implement strong financial management that’s designed to improve the likelihood of future benefit enhancements, while minimizing the possibility of reductions, giving members confidence in the security of their future retirement income.

CWIPP’s funding policy is focused on providing pension security and regular benefit increases when possible.

CWIPP has a flexible plan design

Through its flexible plan design, CWIPP gives you a retirement plan that meets your employees’ needs by allowing you to decide on plan features. Will employees contribute? Will members be able to retire earlier than age 65? Will surviving spouses automatically be entitled to a benefit? Other considerations? It’s up to you!

An exceptional experience for your members

From enrolment through retirement, the CWIPP team is here for you. CWIPP’s state-of-the-art technology makes it easy for members and pensioners to access real-time pension information through a secure online portal. Employers and unions also have a portal through which they can access detailed plan-related documentation, and information to support their employees.

And while there’s so much information available through the member and employer portals, a dedicated team of administration professionals is just a click, phone call or email away! They’ll be delighted to help members find the answers they’re looking for.

A pension paid for life

A CWIPP retirement pension is paid for your lifetime (and potentially to your spouse or beneficiary when you die): a set amount of monthly pension income that you might not otherwise have if you had to save on your own.

Shared investment and longevity risks

How is that an advantage? Because it means that you don’t have to worry about how to invest your own money while working, or after you retire. Or, about outliving your savings once you are retired.

Plan assets are pooled and professionally managed and because of our size, the plan’s investments include a wide range of asset classes that increases diversification and minimizes volatility.

CWIPP’s Board of Trustees is comprised of individuals whose diverse expertise, skills and industry knowledge enable them to govern CWIPP with excellence. They manage everything on your behalf, and for all our plan members.

Leading technology and best-in-class communication

Regular, clear communication and online access to real-time pension information through secure member portals means you get the information you need, when you need it. And, our administrators are available via phone or email – you get connected when and how you’d like.

Access to strategic financial management

On your own, you might not have access to sophisticated investment management, or to fees lower than you’d have to pay at other financial institutions. CWIPP invests all groups’ assets in aggregate, achieving economies of scale and enabling broader diversification in asset classes versus what could be accessed within individual member accounts.

The Trustees govern all of the fund’s activities, and delegate to, and monitor, multiple investment managers.

Plan features

CWIPP’s plan design is flexible, because we appreciate that unions and employers have unique needs, and a one-size-fits-all approach won’t actually fit all. CWIPP’s plan features prioritize the end destination for members: providing a predictable monthly pension paid for life.

A target benefit
pension plan

CWIPP is a defined benefit pension plan, operating as a target benefit (TB) pension plan.

It’s a multi-employer pension plan. There are currently more than 85 different employers — and many unions — participating in CWIPP.

Each employer group has their own plan design — known as plan provisions.

Contributions

Employers contribute to CWIPP. Sometimes plan members do, too, if the employer and union agree.

Member contributions can be used to increase target pension benefit amount, add plan features, or to protect pension benefits (by improving the funding position of your participating group within CWIPP).

Retirement age

It’s age 65.

Or, a plan member can retire as early as age 55 and receive a reduced pension, or in some instances, an unreduced pension if their employer group’s plan provisions provide for this.

Vesting

Sound tricky? It’s not. It just means that you ‘own’ any benefits you’ve earned while in the plan – and you can take what you’ve earned to the date that you leave, with you (unless you’re age 55 or more, in which case the assets must remain in the plan and you become a deferred plan member).

All members are vested from the date they join CWIPP.

If a member leaves before retirement

A member who leaves CWIPP before reaching retirement age has options with what they can do with their benefits earned to date. The available options depend on their age at the date they leave.

If a member dies before retirement

Upon the member’s death, his or her spouse (or beneficiary or estate, if they do not have a spouse) will receive the value of the pension built up to the date of death – members have options when they retire, in terms of the form of pension payment they might be able to choose from.

Pension at retirement

Target benefit pensions are paid monthly for life, and longevity and investment risk are shared by all members.

Pension amount

CWIPP provides members with a predictable monthly retirement income for life. Benefits paid at retirement are based on the target benefit plan formula for that employer group.

CWIPP Trustees implement strong financial management that’s designed to improve the likelihood of future benefit enhancements, while minimizing the possibility of reductions, giving members confidence in the security of their future retirement income.