1. Duration of Pension Agreement
The duration of this Agreement shall be six (6) years, commencing January 1, 1998 up to and including December 31, 2003.
Negotiations to amend and review this Agreement may be commenced at any time during the last year of this Agreement upon a thirty (30) day written notice served by either party.
2. Basic Pension Formula
The Pension Formula of 1.3% of Final Average Earnings which do not exceed the Average Maximum Pensionable Earnings shall be increased for future retirees for all years of service as such:
| January 1, 1998 | 1.5% |
| January 1, 1999 | 1.5% |
| January 1, 2000 | 1.5% |
| January 1, 2001 | 1.6% |
| January 1, 2002 | 1.7% |
| January 1, 2003 | 1.7% |
* The employee contributions shall be increased from 5% to 5.3% as of January 1, 2002.
3. Post Retirement Pension Increases
Effective April 1, 1998, the Post Retirement Pension Factor will be changed to 50% of the percentage increase in the consumer price index with a 3% cap. The adjustment under the amended formula will be paid to all eligible retirees and survivors retroactive to April 1, 1998.
4. Survivor benefit
Increase the Survivor Benefit for current employees on January 1, 1998 who will retire on or after January 1, 1998, to 65% with no actuarial reduction to the monthly pension of the member.
For members who have retired between January 1, 1998 and the date of this agreement, and elected a 60% survivor benefit, the retiree (or surviving spouse) will be reimbursed an amount equal to the total of the actuarial reduction, previously calculated.
5. Buy Back of Previous Service:
On a one time only basis. VIA Rail will open the pension plan to allow the following members the opportunity to buy back service according to the VIA Rail formula subject to Revenue Canada's approval.
(a) 1935 and 1959 CN plan members
(b) VIA Rail will also open the pension plan on a one time only basis to allow members to buy back all service lost prior to the date of this Agreement for reasons provided for under the VIA Rail pension plan, subject to Revenue Canada's approval.
(c) For lost service subsequent to the date of this Agreement, a member will be required to buy back all service lost that may be bought back under the VIA Rail pension plan, subject to Revenue Canada's approval.
6. Occupational Disability:
The parties undertake to meet within one hundred and twenty (120) days of the signature of this Agreement in order to review and amend, if necessary, the definition of "Occupational Disability" under the pension plan.
7. Pension Board
The Corporation has agreed that the Brotherhood may appoint a representative to the Pension Board.
Agreed to on this 12th day of June, 1998
VIA RAIL CANADA INC
THE BROTHERHOOD OF LOCOMOTIVE ENGINEERS
Bannon E. Woods, Director Human Resources and Labour Relations
John Tofflemire, General Chairman
Edward J. Houlihan, Senior manager-Labour Relations
Bradford E. Wood, General Chairman
Francine Hebert, Special Project Officer
Michael W. Simpson, General Chairman
Copyright © 1998 Brotherhood of Locomotive Engineers - National Legislative Board - Canada