Pension Enhancement Program - Implementation Delayed

Some Employers are starting to promote the new and entirely optional Pension Enhancement Program.

BCNU recommends caution. Here are answers to common questions from members.

1. What is the Pension Enhancement Program? ("PEP")
   Under the 2012-2014 NBA collective agreement, members can choose to exchange days of vacation for additional income that will be included in their pensionable earnings.
   It is a one-time, irrevocable choice.
    
2. I see in the collective agreement that if I exchange 5 days of vacation I get an $80 Pension Enhancement Allowance per month. Does that mean my pension income will go up by $80 per month?
   No. If you are a full-time employee your monthly income will go up by $80. This will increase your pensionable earnings by $80 per month but it does not increase your actual pension by that amount. Only increases to pensionable earnings during your highest five years will count towards increasing your pension. Be sure to calculate the impact on your pension in your individual circumstances before opting in to this program.
   
   You can do this by logging into My Account at mpp.pensionsbc.ca.
    
3. Can I change my mind?
   No. Once you have opted into this program you cannot opt out.
    
4. Can I opt into the program later when it makes more sense to maximize my pensionable earnings?
   No. This is a one-time opportunity.
    
5. How is the monthly increase in earnings calculated?
   It is calculated based on the average backfill rate and an average salary. The employer has not provided specifics. However, the calculation is not based on your actual salary and you will not receive a full day of pay in exchange for each vacation day traded.
    
6. If I opt in to the program and exchange 5 days now, do I automatically exchange more days as my years of service go up?
   No. Whatever number of days you are eligible for and elect to exchange now will remain the number of days exchanged. You cannot increase or decrease the number of days later.
    
7. Are there any reasons why I would choose to opt in?
   The advantage of this program over the existing vacation entitlement is an opportunity to increase pensionable earnings. Currently, if you take your vacation it is pensionable but if you take a payout of vacation that income is not pensionable. This program offers a way to use your vacation to increase your monthly pensionable earnings.

The Program is irrevocable. Once you opt in, your vacation entitlement is permanently decreased by that amount.

If you have additional concerns or questions please contact BCNU Executive Councillor Deb Ducharme at dducharme@bcnu.org or Bella Brown at bbrown@bcnu.org.