Information Sheets

Plan at a Glance
The Plan at a Glance offers a quick explanation of the most important aspects of the Plan and its provisions, including investments, contribution rates, retirement eligibility, and more.

Designating Beneficiaries (Pre-Retirement)
If you pass away before retiring, your designated beneficiary may be entitled to a SHEPP death benefit. It is important you designate a beneficiary and understand beneficiary entitlements and options under the Plan.

Designating Beneficiaries (Post-Retirement)
If you pass away after retiring, your designated beneficiary is only entitled to a SHEPP death benefit if your spouse has predeceased you and you chose a form of pension with a guarantee which has not yet expired. It is important to keep your list of designated beneficiaries updated to ensure your SHEPP death benefit is disbursed according to your wishes.

Portability Agreement Transfer
Portability Agreement Transfer Procedure
You may be eligible to increase your SHEPP pension and qualify sooner for unreduced early retirement through a direct transfer of credited service and money from a Canadian registered pension plan of your former employer to SHEPP.

Combining Membership Periods
If you have an active and deferred membership with SHEPP, all of your service and earnings will be combined to determine your SHEPP benefit and your eligibility to receive that benefit. The merging of memberships will happen automatically when SHEPP receives your new active enrolment and will positively impact your retirement dates and pension benefit.

Current Service Purchase (Leave of Absence)
If you are planning to take a leave of absence without pay, you may consider making monthly contributions (both the member and employer required contributions) to SHEPP to ensure your contributory earnings, credited service and full-time equivalent service continue to accumulate during your leave.

Prior Service Purchase
Prior Service Purchase Procedure
If you have a period of employment with a SHEPP participating employer that is not presently credited under any registered pension plan, you may consider purchasing the prior service to increase your SHEPP pension and qualify sooner for unreduced early retirement.

Retirement
Upon retirement, SHEPP provides you with a lifetime monthly pension determined by a formula based on your highest average contributory earnings and years of participation in the Plan (credited service). This means as your average contributory earnings and years of credited service grow, so does your pension.

Tax Forms
Income tax is deducted from your monthly SHEPP pension payment and the amount of tax deducted will depend on your pension amount and the personal exemptions claimed on your federal and provincial TD1 forms. It is important to consider how all sources of retirement income will impact your income taxes when completing the TD1 forms.

Change of Employment
If your employment circumstance changes or terminates, the impact on your pension and the options available to you will depend on the type of circumstance (i.e. reduced hours, layoff, termination or retirement) and the benefit you are eligible for on that date.

Commuted Value Transfer
If you are a vested Plan member, are not yet eligible for an unreduced pension benefit, and are under the age of 55 when you terminate all SHEPP-eligible employment, you may elect to transfer the commuted value of your vested pension to a Locked-in Retirement Account (LIRA) or another Registered Pension Plan (RPP).

Deferred Pensions
If upon termination from all SHEPP employers you elected to receive a deferred pension, you are entitled to begin receiving monthly pension payments from SHEPP at age 65. However, there are other options for receiving your deferred pension.

Disability
Strict rules are in place regarding your pension during periods of disability. If you are receiving benefits from a 3sHealth disability income plan or you have been granted SHEPP approved-disability status, you will continue to earn credited service and build your pension.

Disability T4A
Each February, T4A slips are mailed to members who were approved for disability income plan benefits for all or part of the previous year. Please keep all T4A slips you receive from SHEPP for your records. You will need the pension adjustment (PA) information found on your T4A when you file your annual income tax return.

Power of Attorney
Often included as part of an estate plan, a Power of Attorney allows you to plan ahead and choose who will handle your affairs if you are unable to do so.

Shortened Life Expectancy
Members who become terminally ill prior to retirement can apply to receive the commuted value of their pension benefit as a lump sum cash payment less the applicable income tax.

Spousal Relationship Breakdown (Pre-Retirement)
A SHEPP pension falls within the definition of family property. Upon the breakdown of a spousal relationship, a calculation of the value of the SHEPP pension may be required for the purpose of establishing the value of the family property.

Spousal Relationship Breakdown (Post-Retirement)
Upon the breakdown of a spousal relationship post-retirement, an inter-spousal agreement or court order must be submitted for dividing a SHEPP pension or to remove a spouse’s entitlement to survivor benefits.

Termination of Employment
If you terminate employment and Plan Membership, your termination benefit and options depend on whether you are eligible at that time for an unreduced pension, and if not, your years of service. Following notification from your employer, SHEPP will mail you a statement of your benefit and options.

Transfer Deficiency Holdbacks
Prior to becoming fully funded, SHEPP was required to apply a holdback based on the Plan’s solvency ratio to certain termination benefits. Because the Plan is currently fully funded, this holdback is not necessary.