Pension plan

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Romain
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Pension plan

Post by Romain »

Hi,
As I understand the pension plan at AC is 7.5% employee contribution and 10.5% company contribution.
On WJ new agreement I believe it's now 10% company contribution unmatched.
WJ looks more interesting, but I read a few time that AC pension was the best among all Canadian airlines. Is it still the case?

Thank you.
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NotDirty!
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Re: Pension plan

Post by NotDirty! »

The AC pension that was the best in Canada only applies to those hired before August 1st 2012.
New hires now are on the Canada Wide Industrial Pension Plan. It has pros and cons. Probably still better than WJA.
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fish4life
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Re: Pension plan

Post by fish4life »

Pensions are typically more money in = more money out so under the AC plan you will put in more money in your career so your pension will be higher in retirement.
Now if a WJ pilot was disciplined enough to put the 8% difference between the 2 contributions away and MAX TFSA / non registered or invest it in real estate etc it could be better since their eggs won’t all be in one basket.
I think our (AC) TB pension should be great but who knows what it will look like in 30 years because these TB’s haven’t been tested over a really long term yet.
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Protonpilot
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Re: Pension plan

Post by Protonpilot »

fish4life wrote: Tue Jun 27, 2023 9:29 am Pensions are typically more money in = more money out so under the AC plan you will put in more money in your career so your pension will be higher in retirement.
Now if a WJ pilot was disciplined enough to put the 8% difference between the 2 contributions away and MAX TFSA / non registered or invest it in real estate etc it could be better since their eggs won’t all be in one basket.
I think our (AC) TB pension should be great but who knows what it will look like in 30 years because these TB’s haven’t been tested over a really long term yet.
It's not a new plan. From their website, CWIPP has been around for 50 years operating as a TBP. Don't know the long term history other than that date, but seems well managed and it's been working well for the Air Canada group in the 5 years since joining.

Still no word yet on whether pilots will have to contribute to the new pension plan at WestJet. So far all we know is that the Company will contribute 10%. That doesn't buy much of a pension, you want to make use of the 18% limit for sure.
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rudder
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Re: Pension plan

Post by rudder »

Protonpilot wrote: Fri Jun 30, 2023 5:21 am
fish4life wrote: Tue Jun 27, 2023 9:29 am Pensions are typically more money in = more money out so under the AC plan you will put in more money in your career so your pension will be higher in retirement.
Now if a WJ pilot was disciplined enough to put the 8% difference between the 2 contributions away and MAX TFSA / non registered or invest it in real estate etc it could be better since their eggs won’t all be in one basket.
I think our (AC) TB pension should be great but who knows what it will look like in 30 years because these TB’s haven’t been tested over a really long term yet.
It's not a new plan. From their website, CWIPP has been around for 50 years operating as a TBP. Don't know the long term history other than that date, but seems well managed and it's been working well for the Air Canada group in the 5 years since joining.

Still no word yet on whether pilots will have to contribute to the new pension plan at WestJet. So far all we know is that the Company will contribute 10%. That doesn't buy much of a pension, you want to make use of the 18% limit for sure.
In the CWIPP plan, total contributions are 18% to earn a 1.9% benefit per annum.

If the WJ pilots want the 1.9%, it will be 18% (pilot contributes 8%).

The good news is the employee pension contribution portion is fully tax deductible.
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