Peace of mind and retirement security: join the IAM

If you are looking for a safe and simple way to ensure your financial security in retirement, the IAM has what you need. The Labour-Management Retirement Plan. It is a simple system to negotiate and simple to administer and it provides you with easy-to-calculate pension benefits (defined benefit).

It is an affordable plan for your employer!
The IAM Labour-Management Pension Plan is a multi-employer pension plan which contribute thousands of active members working in dozens of workplaces represented by AIM. It is the ideal system for small- and medium-sized businesses like car dealerships. We represent workers in dealerships across Canada and many of these workers are involved in our plan.

Employers pay into the system on behalf of their employees based on an hourly rate negotiated in their collective agreement. The amounts paid vary according to the amounts paid in contributions. The Plan is registered with the government and subject to government rules. The funds are held in trust and invested by professionals with a view to maximizing returns for retirees and their families.

What are the advantages for me?
A defined benefit plan allows you to keep track of amounts you have contributed and the amount that you can expect in retirement benefits. The risk is shared. So, unlike an RRSP or a defined contribution plan, you do not personally assume the entire risk. With larger investment funds, the plan proposed by the IAM enables diversification, higher returns and lower risks – at much lower costs compared to if you invested by yourself. Employers are not entitled to contribution holidays, therefore, any surplus resulting from returns are reinvested into the plan to improve benefits.

What are the benefits for employers?
Employers who contribute to theIAM Labour-Management Pension Plan provide their workers with a secure source of retirement income without the risks or responsibilities of an aggressive growth fund. There are obligations of fixed costs on the contributions agreed to in the collective agreement – without needing to provide balance sheets. With standard wording and type of trust agreement, it is simple to negotiate. It is easy to manage through a single delivery report per month – no need for regulators, lawyers, actuaries and investment managers.