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Once you leave CBS, the retirement income generated from the Defined Contribution (DC) plan will play an important part in your financial security.

It is important to note that, with DC plan, the amount of income you are able to generate in retirement depends entirely on the value of your retirement account and the amount of monthly annuity you can purchase, based on the interest rates in effect at the time.

It's a good idea to discuss your options for using the balance in your retirement account with your financial advisor.

When you can retire

  • You can retire and receive benefits from the Defined Contribution (DC) plan on or after the last day of the month in which your 55th birthday occurs, as long as your benefits are vested.

  • Vesting refers to your right to receive both your contributions and CBS's contributions.

  • If you are disabled and receiving benefits from the CBS Long-Term Disability Plan, you will retire the last day of the month in which your 65th birthday occurs.

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When you become vested

  • Vesting refers to your right to receive CBS's contributions from the Defined Contribution (DC) plan.

  • Your benefits are locked in once they are vested.

  • Generally, your benefits are vested once you've been a plan member at least two years. In certain provinces, another date applies related to continuous service (unbroken employment in Canada with CBS and the Canadian Red Cross Society, including approved periods of leave of absence and disability).

If you work in . Your benefits are vested once you've been a plan member for at least two years, but .
New Brunswick no later than the date you complete 5 years of continuous service
Manitoba or Saskatchewan no later than the date you complete 2 years of continuous service

  • Benefits for all employees who were members of the Canadian Red Cross Pension Plan on November 1, 1997 were immediately vested on joining the CBS Defined Contribution (DC) plan.

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What happens to your account when you retire

  • When you retire, you can use the money in your retirement account (remember, this amount includes your required and optional contributions, and those that CBS has made on your behalf, along with the income they've earned while you've been in the plan) to buy an annuity from an insurance company, which will begin no later than December 31st of the year you reach age 71.

  • Alternatively, you can choose a lump-sum transfer to a locked-in RRSP, another registered pension plan, or another approved retirement savings arrangement. This latter option, in most jurisdictions, allows you to receive a regular income but doesn't lock in the capital involved. This means you have the option of purchasing an annuity at a later date.

  • To increase flexibility and benefit from good annuity rates, you can choose to buy the annuity up to two years ahead of the date you actually retire. Remember, the amount of annuity you are able to buy depends greatly on the interest rates in effect when you purchase the annuity. In addition, you should consult a number of sources in the insurance industry to determine the best annuity quotation for the funds you have at your disposal.

  • If you have a spouse when your annuity starts, it must be paid in a form that — if you die — provides at least 60% of the amount of pension you were receiving before death to your eligible surviving spouse. (If you work in Manitoba, under current pension law, the annuity must be adjusted to provide a 66% pension to your eligible surviving spouse.)

  • If you have a spouse and wish to choose a different form of annuity, you and your spouse must both sign a form waiving this automatic pension.

  • When you retire, Head Office will inform you if you are eligible for any post-retirement insurance benefits.

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