Introduction
A retirement or pension plan is a scheme where an employee contributes monthly for their retirement from their earnings. Their employee is required to match the contribution made by the employee. After retirement, the employee will receive a monthly payment from the plan enabling them to continue leading their lives after years of depending on salaries.Now we will see Does HEB Have A Retirement/Pension Plan?
HEB (Healthcare Employees Pension and Benefits plan) has a retirement/pension plan that it provides to its members who are healthcare employees. The members make contributions to the pension plan and benefit from the pension plan after retirement by receiving monthly pension payments and full amount pension guarantee in their stated guarantee period and after their death by their beneficiaries.
HEB pension plan for active members
Membership to HEB pension plan
HEB pension plan membership is voluntary for new employees who do not have any pension plan in the first two years of service. The new employees who were already members of the pension plan are to join the HEB pension plan when employed.
For those who had already started receiving their pension from HEB and are now employed, they are to fill in the return to work waiver or participation form are not eligible to make their contributions to the pension plan but for individuals receiving their pension from other pension plans and are now employed can join in the HEB pension plan after two years of service.
How to contribute to the HEB pension plan?
Pension contributions for individuals in the HEB pension plan are deducted from their monthly pensionable earnings and the employers match their contributions as stated in the Plan Cost Summary at www.hebmanitoba.ca. The amount to be contributed per year cannot exceed the set Year’s Maximum Pensionable Earnings at $64,900 for 2022 by Canada Revenue Agency and an individual is allowed to contribute to the plan until November 30 in the year they attain 71 years of age.
Retirement eligibility requirements for HEB pension plan
HEB has set out some eligibility criteria that need to be adhered to for one to receive their pension. This is as outlined below
For persons employed before January 01, 2020, and the addition of their age and number of years they have been employed is equal to 80, they can retire and apply for their pensions but if their age and year in employment is not equal to 80, the persons can retire when their age and year of employment will be equal to 80, are 55, and 60 years old.
If an individual was employed after December 31, 2019, they can retire if they are aged 55 years, their age and years of employment sum to 80, and the least age they have is 55 or aged 60 years.
In the event of an early retirement sort by an individual, the reduction will be made to one’s pension if they are below 60 years old or their age and year of employment do not add up to 80.
In the event, one wishes to retire and they were employed before January 01, 2020, and by December 31, 2019, their age and their years in employment did not add to 80, they are allowed to retire when they age and years in employment sums to 80 but if they will be below 55 years their pension will be reduced, if 55 years they will receive the full pension. These deductions are based on actuarial calculations.
Types of pension plans
When an individual is applying for a pension plan under the HEB pension plan, they are required to choose an option that matches their preferences with different monthly deductions. The types available are as illustrated below.
- Single life pension plan
This is an option available for an individual who is not married and married too. The individual receives a monthly pension after retirement and the full pension amount after 5, 10, or 15 years after retirement as indicated when one was applying for the pension, and if one loses their life before attaining the guarantee period their beneficiary will receive their pension.
- 66 2/3% joint and survivor pension plan
66 2/3% joint and survivor pension plans are available to an individual who is married The individual receives a monthly pension after retirement and the full pension amount after 5, 10, or 15 years after retirement as indicated when one was applying for the pension. In case one loses their life before the guarantee period is reached, their beneficiary will receive the full monthly pension until the guarantee period is reached, after which they will be receiving 66 2/3% of the pension amount for their lifetime.
If the individual lost their life after the guarantee period had been attained, the beneficiary will receive only 66 2/3% of the pension for their lifetime. If both the pensioner and their beneficiary lose their lives before the guarantee period is attained, the beneficiary of the last one to survive will receive a lump sum payment of the remaining guarantee.
- 100% Joint and survivor pension plan
This is available to a married individual. The individual receives a monthly pension after retirement and the full pension amount after 5, 10, or 15 years after retirement for themselves and their beneficiary as indicated when applying for the pension. If both the individual and their beneficiary lose their lives before the guarantee period is attained, the beneficiary of the last one to survive will receive a lump sum payment of the remaining guarantee.
Conclusion
The HEB Retirement/pension plan enables its members to have a comfortable retirement where they receive monthly pension payments that they use to settle their bills and live comfortable lives after years of service to the health sector reducing their overdependence on family, state, or friends to meet their needs granting them dignity in their old age.
