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Glossary

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Account Balance – The number of units you have in each fund multiplied by the current unit value for each fund.  Return on investment is reflected in the changing unit value.
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Asset Allocation Funds – Funds which are invested in a variety of markets with different asset classes (equity, real estate and fixed income).  PEPP has six asset allocation funds that members can choose from. 
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Breakdown of Spousal Relationship – The dissolution of a legal marriage or a common-law relationship.  Your spouse remains your beneficiary until the spousal relationship is legally dissolved. In the case of a marriage, the spousal relationship is legally dissolved when the divorce is final.  For beneficiary purposes, a common-law relationship is legally dissolved when the member and spouse cease living together for at least 90 days.
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Contribution Percentage – The percentage of salary an employee and employer are required to contribute to the Plan, as defined in a collective agreement or other employment agreement.
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Death Benefit –- The benefit paid to a spouse or beneficiary(ies) upon the death of a member.
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Deferred Retirement –- You may retire and defer your retirement income. Members may defer as last as the end of the calendar year they turn age 71.
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Early Retirement – You may retire early and begin to receive retirement income if you are at least age 50, no matter how long you have been a PEPP member.
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Family Property Act, The –- Governs the division of property.  A pension plan is considered property under The Family Property Act.  If a breakdown of a spousal relationship occurs, the Act and the definition of spouse as outlined in the Act will govern the division of the pension account.
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Joint Life Annuity – A retirement income option that, at a minimum, provides guaranteed fixed monthly payments for your lifetime, and in the event of your death, payments continue in whole or in part to your spouse for his or her lifetime.
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Leave of Absence – An employer-approved leave – usually education leave, maternity leave, or parental leave – during which you may not be working for another plan sponsored employer.
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Life Annuity –- A retirement income option that provides fixed monthly income guaranteed for your lifetime. It provides monthly payments based on the terms of the type of annuity you select.  The two types of annuities are single life annuity and joint life annuity.
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Locked-in –- Your PEPP account must be used to provide income at retirement.
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Locked-in Retirement Savings Account (LIRA) – A LIRA is a locked-in RRSP. Because it is locked-in, the money in a LIRA cannot be withdrawn and must ultimately be used to provide you with retirement income.
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Maintenance Orders – The court can order the withdrawal of funds from your account balance as a last-resort to enforce maintenance orders, as outlined in the court order (e.g.: child support, spousal support).  If you are an inactive member of the plan, have no source of income and are in arrears of maintenance payments for at least three months, the director of the maintenance enforcement office may file a “notice to the administrator of intention to attach pension entitlement” with the plan.  The plan administrators are obligated to make payment from your account balance.
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Maximum Contributions – The maximum you and your employer may contribute to PEPP in a calendar year.
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Normal Retirement – Normal retirement age is 65. Retirement is not mandatory.  You may defer your retirement income until the end of the calendar year you turn age 71.
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Prescribed Registered Retirement Income Fund (pRRIF) – A retirement income option available through banks, trust companies, credit unions, insurance companies, brokerage firms and independent financial advisors.  With a pRRIF, you control the payments and choice of investment funds.  You are required to make minimum annual withdrawals the year after purchase.
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PEPP Access – an online service portal for PEPP members which allows you to view personal details, check pension account balances and view statements.  It is also the gateway for Retire@Ease, PEPP’s online retirement planner.   
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Required Contributions – The Amount members and employer are required to contribute to the plan. Member contributions are deducted from your paycheque.
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Retire@Ease – An online retirement planner for PEPP members available through PEPP Access.
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Single Life Annuity – A retirement income option that at a minimum, provides, guaranteed fixed monthly payments for your lifetime.
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Small Pension Payment – A refund of the value of the units in your account, if your account balance is below an amount determined by the Income Tax Act (Canada) when you terminate with a PEPP participating employer. The payment can be a lump-sum payment (less withholding tax) or a transfer to a RRSP. If you are vested when you apply for payment, you are entitled to the contributions made by your employer on your behalf. If you are not vested, your are entitled only to the contributions you have made.
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Spouse - Your spouse is:

  • the person to whom you are legally married; or
  • if you are not married, the person with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:
    • has been living with you in a conjugal relationship for at least 12 continuous months;
    • is the parent of your child by birth or adoption; or
    • has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

A spousal relationship with someone to whom you are legally married ceases upon divorce.

A spousal relationship with someone to whom you are not married ceases upon a separation of at least 90 days due to a breakdown in your relationship.  The individual immediately resumes being your spouse if you resume living together in a conjugal relationship.

A married spouse takes priority over another person even if that person meets the definition of a spouse.  You cannot have more than one spouse at any given time.
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Survivor Benefit – A benefit payable to a member’s surviving spouse upon death after retirement.  The benefit is usually a percentage of the member’s full benefit. 
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Terminal Illness – active, progressive disease leading to death within one year.
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Variable Pension Benefit (VPB) – a retirement income option available through PEPP.  Income from the Variable Pension Benefit (VPB) is flexible and at the discretion of the member.  With the Variable Pension Benefit (VPB), no minimum withdrawal is required until the end of the calendar year you turn age 71.
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Vested – Entitled to receive the contributions your employer made on your behalf when you retire or terminate employment with your employer.
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Voluntary Contributions –- Money that you choose to contribute to PEPP to help build your retirement income.  Employers are not required to match voluntary contributions.
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Yearly Maximum Pensionable Earnings (YMPE) – The Yearly Maximum Pensionable Earnings (YMPE) is set by Canada Revenue Agency (CRA) and determines the maximum earnings on which contributions to the Canada Pension Plan (CPP) are based.
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