All Gas division Management & Exempt employees (M&E Gas) and all Gas and Electric division MoveUP Customer Service employees are required to join the FEI Plan as soon as they have fulfilled the eligibility criteria:
When you join the FEI Plan, you will need to complete a pension enrolment form so that FortisBC and the third-party pension service providers have access to the information required to administer your pension. It is important for you to provide accurate information, including your marital status and beneficiary. Here is a copy of the Pension enrolment & appointment of beneficiary form.
All Gas division Management & Exempt employees (M&E Gas) and all Gas and Electric division MoveUP Customer Service employees are required to join the FEI Plan as soon as they have fulfilled the eligibility criteria:
When you join the FEI Plan, you will need to complete a pension enrolment form so that FortisBC and the third-party pension service providers have access to the information required to administer your pension. It is important for you to provide accurate information, including your marital status and beneficiary. Here is a copy of the Pension enrolment & appointment of beneficiary form.
There may be death benefits payable from the FEI Plan when you pass away. New members can designate a beneficiary for these potential benefits by completing the Appointment of Beneficiary section of the pension enrolment form. Existing members can make or change beneficiary designations using the Beneficiary Change form.
If you do not designate a beneficiary and do not have a Spouse at the relevant time, any death benefits payable will form part of your estate for tax and probate purposes and will usually take longer to distribute.
If you have a Spouse…
Under British Columbia pension legislation, you must name your Spouse as your primary beneficiary. Even if you name someone else, such as your child, your Spouse will remain your primary beneficiary unless they complete a waiver.
“Spouse” under the FEI Plan means:
The person to whom you are legally married, unless you have been living separate and apart for two or more years.
OR
The person you have been living with in a marriage-like relationship for at least two years.
The annual pension statement you receive in June of each year will confirm who is on file as your beneficiary and Spouse. Be sure to review the names and, if necessary, make changes using the Beneficiary Change form.
You and FortisBC are required to contribute to the FEI Plan in equal amounts, which are calculated as part of bi-weekly payroll processing. The pension contributions are pooled together, remitted to the pension fund and invested by the Outsourced Chief Investment Officer, in accordance with the investment policy established by the pension committees.
The pension committees also approve the contribution rates based on the plan’s financial position, and upon reviewing the most recent Actuarial Valuation. Pension legislation requires that the financial position be reviewed at least once every three years.
Once the contribution rate is determined, it is applied to your Earnings to determine how much you and the company need to contribute.
Keep in mind that contribution rates can change over time, as approved by the pension committees. If you are currently employed by FortisBC, you can check out Connector for current and historical FEI Plan contribution rates (making sure to select the section for your affiliation).
Let’s say your annual base pay is $80,000 and you receive an incentive payment of $5,000 (in recognition of prior year performance). | ||
|---|---|---|
Your Earnings would be: | = base pay + incentive pay | |
= $80,000 + $5,000 | ||
= $85,000 | ||
Now, suppose the contribution rate is 7.7% of Earnings. You and the company would each contribute:
$6,545 per year (7.7% of Earnings) to the FEI Plan, or around $252 per pay.
In addition to the required contributions, you have the option to make voluntary contributions to an ancillary account that may be used to enhance your pension at retirement. Any voluntary contributions you make are remitted to an ancillary account in your name at Canada Life and invested by you, within the range of options available through the Canada Life platform.
You may contribute to the ancillary account through bi-weekly payroll deductions. The maximum voluntary contribution is currently 1.3% of regular bi-weekly salary. This maximum voluntary contribution rate can change over time as the required contribution rate changes following each Actuarial Valuation. Should the required contribution rate be 9.0% or higher, the ancillary provision will be closed to new contributions. Existing ancillary account balances would continue to accumulate even though no new contributions are deposited.
To begin making contributions to an ancillary account or change your contribution amount, please reach out to the FortisBC Pension Department.
Contributions you make to an ancillary account are tax-deductible to the extent permitted under the Income Tax Act, but they don’t impact your personal RRSP room. This means that these voluntary contributions to an ancillary account are a great option for someone who has maxed out their personal RRSP room, and is looking for more ways to save for retirement.
See the Ancillary Provision section to learn more about the option to contribute to an ancillary account and related benefit enhancements.
