CN retirees to receive pension improvements

Canadian Director Gilles Hallé announced on November 16 that CN's Board of Directors has accepted the BLE Pension Committee's recommendation to improve pension payments for the majority of its 47,000 Canadian pensioners.

This amendment to the pension plan will distribute $141 million in value to pensioners in direct lifetime monthly pension increases,* and supplements the distribution of $20 million in increases -- over and above basic pension indexing -- that took effect in 1999.

Individual increases, effective January 2001, will be based on the number of years that eligible pensioners have been retired, and their pensionable service at the time of retirement. The table below shows these increases on a monthly basis.

The latest improvements were unanimously recommended by CN's Pension Committee, made up of representatives from six unions (BLE, BMWE, CAW, CN Police Association, IBEW, UTU) as well as from CN's pensioner association, non-unionized employees and management.

The Pension Committee, which replaced CN's Pension Board, was formed last year following the last round of national negotiations. Its role includes recommending pension improvements using available funds in the Escalation and Improvement Accounts.

CN's pension committee is unique in Canada in having the authority to recommend improvements in unionized employees' pension benefits during the life of collective agreements, without having to wait for collective bargaining.

The Committee also recommended amendments to the plan rules dealing with employees who sustain on-the-job fatal injuries, and the buyback associated with maternity, parental and off duty injury for time periods not previously allowed under old rules. CN's Board of Directors had approved these recommendations, as well, some time ago.

Improvements for the active members will be announced in near future according to Canadian Director Gilles Hallé.

 

* -- Monthly pension increases

For retirees entitled to the basic indexing as of January 2001

 

 Years of pensionable service at retirement

Years since retirement (as of 31/12/00)

 Less than 5

 5 - 10

 10 - 20

 20 - 30

 30 +

 5 - 10

  $15.00

$22.50

  $30.00

  $37.50

 $45.00

10 - 20

  $22.50

  $30.00

 $37.50

 $45.00

  $52.50

 20 - 30

  $30.00

$37.50

 $45.00

 $52.50

  $60.00

Over 30

  $37.50

  $45.00

 $52.50

 $60.00

 $67.50

 

 

© 2000 Brotherhood of Locomotive Engineers