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Part X: Pension and Insurance

49 LIFE INSURANCE
49.1 The benefits and terms and conditions of benefit entitlement for group life, living benefit and spousal life insurance for employees are as described in: the Collective Agreement; the brochure entitled "Group Life Insurance, Living Benefit and Spousal Life Insurance, updated April 10, 2000" and, group policies on group life insurance and living benefit and spousal life insurance dated April 1, 1999 between the company and the carrier. These documents, by reference, form part of the Collective Agreement. The benefits and terms and conditions of benefit entitlement as described in the above documents can be changed by mutual consent only.
49.1.1 The cost of basic term insurance for employees will be paid by OPG.
49.1.2 The cost of additional term insurance for employees will be paid by the employees.
49.1.3 Upon retirement, term insurance equal to 50% of final base annual earnings will be provided, reducing to 25% ten years after retirement.
49.1.4 An employee will become eligible for membership in the plan upon being assigned regular status.
49.1.5 In the event that an employee does not make an election, Option I (see 49.2 below) will automatically be designated.
49.1.6 After the initial election period, a re-election of option will be permitted only once a year during the month of December.
49.1.7 The employee will be required to submit evidence of insurability if a re-election results in total increased insurance coverage.
49.1.8 Any re-election shall become effective on the January 1st following the year in which the re-election is made or on the date of approval by the insurer of any required evidence of insurability, whichever is later.
49.2 Life Insurance Options

Option Basic Term Insurance3 Additional Term Insurance4
I Two Times Base Salary Nil
II Two Times Base Salary One Times Base Salary

3 Basic Term Insurance is composed of term insurance equal to base annual earnings raised to the next $500.00 and multiplied by 2.

4 Additional Term Insurance is the optional term insurance which an employee may elect in addition to the basic insurance coverage. It is equal to base annual earnings raised up to the next $1,000.00.
49.3 The maximum additional term insurance that may be purchased by an employee shall be referred to a tripartite (Society, Management and PWU) forum for further consideration.
49.4 An employee who meets the following criteria shall be eligible to cash out 50% of his/her total claim value to a maximum of $50,000.
Criteria:
  • the illness must be terminal with death likely to occur within 24 months;

  • OPG's consent is required;

  • the consent of the employee and his/her beneficiary is required;

  • the beneficiary must have reached the age of majority; and

  • the employee must be competent and able to understand a transaction of this nature.
Payments must be processed as a loan and interest charged to avoid making the payment a taxable benefit to the employee.
When death occurs, the advance payment plus accrued interest is deducted from the claim value.
49.5 Spousal Insurance
49.5.1 Only spouses of active employees are eligible.
49.5.2 Insurance is available in units of $10,000 to a maximum of $150,000 (15 units).
49.5.3 The entire cost, including administration costs, will be paid by the employee. The employee will arrange payment with the insurer and payment will be the direct responsibility of the employee.
49.5.4 The participation rate will have to be 20-30% otherwise proof of insurability will be required.
49.5.5 The premium rate will be different from the rate for employees, and will be experience rated. The premiums would then vary from year to year based on the experience of the previous year.

50 PENSION PLAN
The Ontario Power Generation Inc. Pension Plan (Registration #1059120) forms part of this collective agreement. The provisions of the Pension Plan are generally described in the brochure Ontario Power Generation Inc. Pension Plan - Effective January, 2000. Changes to the Pension Plan affecting Society-represented members of the plan, other than legislative changes, shall be made only upon mutual consent.
It is agreed that normal administrative matters such as changing financial advisors are not considered by the Parties to be changes to the Pension Plan within the meaning of Article 50, subject to any understanding, agreement, or decision to the contrary with the PWU.
50.1 All the changes to the Pension Plan heretofore agreed to between The Society and OPG have been incorporated into the Pension Rules/text.
50.2 The employer shall not request legislation, regulations, or Order-in-Council approval or make rules which would change pension benefits, unless upon mutual consent. Moreover, the employer will not unilaterally seek legislation to change access to surplus unless upon mutual consent.
50.3 Probationary Employees
Probationary employees who have attained three months' service shall be eligible to become members of the Pension Plan. A new employee who completes his/her probationary period after January 1, 1999 and who is a contributor to the Plan may irrevocably elect and pay the required contribution within three months immediately following completion of the probationary period, to buy credited service for his/her probationary period, failing which there shall be no subsequent right to elect.
50.4 (item 50.4 has been deleted)
50.5 Buy-Back of Service
The following shall apply after the Pension Rules are changed.
a) Employees will be able to purchase the following service on an actuarial basis at no cost to OPG, provided the employee provides evidence of such service satisfactory to OPG:
i) temporary employees;
ii) leaves of absences;
iii) pregnancy/parental leaves;
iv) broken service;
(ii), (iii) and (iv) above are enhancements to current provisions.
b) This provision will be subject to restrictions of the Income Tax Act (Canada) and all applicable provincial or federal pension legislation.
c) For the purposes of this section, "service" shall mean service with Ontario Hydro prior to April 1, 1999 or service with Ontario Hydro's successors after April 1, 1999.
50.6 Spousal Benefit
Effective July 1, 2000 the survivor benefit maximum shall be increased from 64% to 66 2/3rds. This improvement will apply to members whose pensions commence on or after July 1, 2000 and also to pensioners and surviving spouses in receipt of pensions.
50.7 Bridging Benefit
1. This benefit is payable to eligible employees who retire after January 1, 1997 and this benefit replaces the existing bridge benefit.
This amendment does not change the amount of pension payable after age 65. The purpose of the amendment is to pay the bridge benefit now payable to members who retire before age 65 with 35 years of credited service to a member retiring after January 1, 1997 before age 65 with 30 years of credited service. For members who retire before age 65 with less than 30 years of credited service, the bridge benefit will be prorated in proportion to credited service.
The bridge benefit will be reduced by the same percentages as is applied to the lifetime pension if a member retires prior to qualifying for an unreduced pension.
2. For people retiring on or after January 1, 1997 the bridge benefit payable when a member eligible for an unreduced pension retires will be increased from:
A x B x C
where:
A equals 0.625%
B equals post 1965 credited services to a maximum of 35 years
C equals the lesser of the member's average earnings in the 60 consecutive months when the earnings were the highest and the average of the YMPE's during the 60 consecutive months when the earnings were the highest.
to;
A x D x C
where A and C are as above and
D equals 35 times the lesser of 1 and the member's years of credited service divided by 30.
50.8 Rule of 82
Employees may retire without discount when their age and years of continuous service equals 82 or more.
50.9 Continued Contribution
Contributions are now allowed beyond 35 years.
50.10 Employee Contribution Holiday
Employees will be permitted to take a 9-month contribution holiday. The holiday will be for the fiscal weeks 011 (2001) up to week 094 (2001) inclusive.
50.11 Plan Formula
Effective October 1, 2001 there will be a Reduction of CPP integration adjustment factor from .625% to .500%. The employee's contributions will increase by .5% if and when the assets fall below 106% of the liabilities based upon a solvency valuation.
50.12 Supplementary Plan
The following language will be included in the supplementary plan:
"Society members of the OPG Pension Plan, whose pension income as a pensioner will exceed the limits prescribed by the Income Tax Act (ITA) for pension paid from a registered pension plan, are eligible for the Supplementary Payment Schedule (SPS). The SPS tops up the amount one receives from the OPG registered pension plan to the amount one would receive if there were no ITA limits."
50.13 Reciprocal Transfer Agreements
OPG will seriously consider reciprocal transfer agreements with respect to any Change of Employer situations, where the new employer is not a competitor of OPG, and where the new employer agrees to a reciprocal transfer agreement.
50.14 Fund Transfer
The Society shall continue to have access to reasonable pension plan and pension fund information, which shall include reasonable information related to the allocation and transfer of pension funds to a successor pension plan. The Society will have the opportunity for input prior to the filing of any transfer report or new plan text with FSCO. In the event that pensioners or deferred pensioners are to be transferred, the Society will also have access to and input on, such situations.