Retirement Preparation

When a retirement event is declared, the first step is for management to canvass the workforce to see who wishes to retire. If you are fairly certain you would like to retire this year then sign the form saying you would like to participate. It is easier to back out if done in a timely fashion than it is to try and get added to a list at a later date.

After the lists are compiled and manpower requirements are sorted out then a Retirement Initiation Form must be signed. Along with this form, you will need to provide certain documents such as a marriage license (if married), spouse’s S.I.N. and both partners' birth certificates. If these documents are not available, there are other documents which may suffice. When this information is compiled, the official pension papers can be requested from Toronto. If a person is approved to retire, they will also need to complete a TD2 form directing any lump sum monies to a financial institution, if desired, and a direct deposit form for their monthly pension deposit. These forms are usually sent out from our local personnel office. After this process, the pension papers must be signed by the employee, the GM pension representative and the union pension representative.

2007 PENSION RATES

The monthly pension rates as of October 1, 2007 for an employee with 30 yrs or more of service are $3,515 for a production employee and $3,895 for a skilled trades employee. This amount changes at age 65 to a basic benefit. A production employee with 30 years service would take home approximately $650 week.

A skilled trades employee with 30 years service would take home approximately $700 per week. There are a few variables which could change these figures such as; spouses age compared to employee’s age, tax implications if drawing from investments and extra service over 30 years which would increase the survivor option cost.

AGE 65 & BEYOND

At age 65, all GM retirees pension money is reduced to a basic benefit rate dependant on years of service and classification at time of retirement.

For new retirees, as of October 1, 2007 this monthly rate will be $68 per year of service for an assembler and $81 per year of service for a tradesperson. This amount is indexed each year.

Any government money such as Canada Pension plans and Old Age Security is not included in any calculations in this article.