Air Canada CSSAs: Update: Early Retirement Incentive Programs
April 15, 2021 at 12:48 PM
As communicated on March 5th, your Air Canada Bargaining Committee has been meeting regularly with the senior leadership of Air Canada to facilitate the joint planning committee process as stipulated in the Group Termination provisions of the Canadian Labour Code.
Since March 9th, 2021, Unifor, along with the other union groups: CUPE, IAM, CALDA, and ACPA have met regularly with Air Canada to discuss the potential plans and processes to mitigate layoffs.
Unifor and Air Canada have agreed on two retirement incentives:
#1. Added Pension Benefit up to age 65: Members who as of August 1st, 2021 at the latest, are eligible to receive an unreduced pension (members who are at least age 55 and have 85 points) who apply for a temporary pension benefit before May 14th, 2021, and who retire between June 1st and August 1st, 2021 will receive an annual pension benefit of $400 per year of qualifying service accumulated in the pension plan in addition to the pension benefit they are otherwise entitled to receive, to a cap of a maximum of $14000 until age 65.
For Example: A member that is age 55 with 30 years of qualifying service will be entitled to 30 x $400.00 = $12,000 per year in addition to their monthly pension until they reach age 65.
#2. Unreduced Pension from 55/85: Members who as of August 1st, 2021, are not eligible to receive an unreduced pension (do not have age 55 and 85 points) and who apply for an unreduced pension before May 14th, 2021, and who retire or resign between June 1st and August 1st, 2021, will be entitled to a pension reduced from the date they will reach 55/85points (age + qualifying service), without accumulation of qualifying service, instead of a pension reduced from the date they reach age 65. The member will have the option to start receiving the unreduced pension from the date they reach 55/85 criteria instead of an immediately reduced pension.
The normal reduction would be 6% per year from age 65. With this option, the pension would be reduced by 6% per year from age 55.
For Example: A member that is age 54 with 31 years of allowable service will have a 6% reduction in their pension benefit for 1 year to age 55 with this option, rather than a 6% reduction for 11 years to age 65.
Both programs will be paid for through the surplus of the pension plan which currently sits at a solvency surplus of 111% or $3 billion. Air Canada reserves the right to limit the number of applications for each program.
Members will maintain all previously granted and unused C1/J passes (Thank You, Appreciation, Holiday, and Unique events) which have not expired. They must however be used within 2 years of retirement date (IE: 01 March 2023). Unused Reunion passes are also able to be carried into retirement but must be used no later than December 31st, 2022.
Members who opt for one of the programs will also be granted a one-time “Mitigation Retirement Pass” valid for the retired employee and one companion of choice. The Mitigation passes have a priority of PJ5/J00, must be booked 21 days in advance, and are subject to availability. These passes must also be used by December 31st, 2022.
Further details will be released by the company. The application deadline will be May 14, 2021. The company will provide a calculator to assist members in determining if they qualify and how much they will be entitled to.
In Solidarity,
Your Air Canada Bargaining Committee
Frances Galambosy, Central Region, Chairperson
Tammy Moore, Atlantic Region
Benoit Lapointe, Eastern Region
Joanne Goulet, Western Region
Steve Murphy, Pacific Region
Leslie Dias, Unifor Director – Airlines Sector