The decision whether to stay in the existing MTS Defined Benefit (DB) Pension Plan or change to their new Defined Contribution (DC) Pension Plan is not one to rush, or be rushed into making.
If you choose to change to the DC plan and regret that choice later, you will not have the option to switch back to the DB plan.
TEAM is of the opinion that it is not prudent to make a decision of this magnitude without thorough analysis and consideration.
- This decision could potentially determine if your retirement plans will have to be postponed.
- It directly impacts your ability to provide a quality standard of living for yourself and your family once you retire and for the duration of your life.
We urge you not to make your choice at this time based only on information provided by MTS Allstream and the vendor of the DC Pension product, Great West Life. Contact TEAM, consult independent financial advisors, talk to people who have pulled out of DB plans, those now living on DC pension generated income, and gather information from a variety of sources to ensure that you choose the pension plan that is right for you and your family. Also consider talking to MTS retirees who are currently enjoying the benefits of the MTS DB pension plan and hear first hand how the DB pension worked for them.
You also need to know the outcome of the Pension litigation to make a truly informed decision.
- A favourable outcome in the lawsuit may preclude MTS from establishing a DC pension plan without the consent of plan members.
- A favourable outcome in the lawsuit may be diminished by virtue of a large exodus of members from the DB plan to the new DC plan.
- There is a risk that only active contributing members to the DB plan will benefit fully from improvements made to the DB plan as a result of a favourable outcome in the pension lawsuit.
- The existing DB pension calculation is under review, and the proposed new calculation will result in increased monthly pension payouts for some TEAM members.
- Any increase in benefits to your current DB pension plan as a result of a favourable outcome of the pension lawsuit will alter the calculations used to determine accurate comparisons between the two plans.
It is TEAM's strongly held view that waiting until we have Justice Bryk’s decision, and have reached a full and final resolution of the lawsuit, would provide the best opportunity for you to make fully informed decisions about your retirement plans. We are hopeful that a decision will be available before the end of the year.
During the Company’s previous attempt to introduce a DC pension, TEAM requested an opinion from our actuary regarding the potential impact on our DB pension; Click here to read his response.
Further updates will be distributed as they become available.