By making contributions to an ancillary account, you may be able to use those funds to enhance your pension as follows (limited based on your ancillary account balance as well as pension rules):
How you choose between these four options at retirement depends on whether you plan to elect a joint and survivor pension option (which requires that your ancillary account first be used to provide for option 1), as well as your anticipated income needs during retirement.
Option 1 and 2 will increase your monthly pension by a flat/fixed amount that applies throughout retirement. Option 3 will increase your monthly pension for a temporary period only (up to age 65). Option 4 will gradually increase your monthly pension over time, throughout your retirement years. Under option 4, the increase may start out very low at first but will grow to be more significant later in retirement.
Depending on your age and the value of your ancillary account at retirement, it is possible that the balance in your account may exceed the value of the available enhancements. If this occurs, the excess amount that cannot be used to enhance your pension from the FEI Plan will be paid to you outside of the FEI Plan as a taxable lump-sum payment.
Check out the Examples of Ancillary Enhancements and Cost section here.
By making contributions to an ancillary account, you may be able to use those funds to enhance your pension as follows (limited based on your ancillary account balance as well as pension rules):
How you choose between these four options at retirement depends on whether you plan to elect a joint and survivor pension option (which requires that your ancillary account first be used to provide for option 1), as well as your anticipated income needs during retirement.
Option 1 and 2 will increase your monthly pension by a flat/fixed amount that applies throughout retirement. Option 3 will increase your monthly pension for a temporary period only (up to age 65). Option 4 will gradually increase your monthly pension over time, throughout your retirement years. Under option 4, the increase may start out very low at first but will grow to be more significant later in retirement.
Depending on your age and the value of your ancillary account at retirement, it is possible that the balance in your account may exceed the value of the available enhancements. If this occurs, the excess amount that cannot be used to enhance your pension from the FEI Plan will be paid to you outside of the FEI Plan as a taxable lump-sum payment.
Check out the Examples of Ancillary Enhancements and Cost section here.
An ancillary account is similar to an RRSP during the accumulation phase since you maintain the investment risk up to the point of retirement.
However, with an ancillary account you “trade in” your accumulated balance at retirement for a fixed/pre-determined monthly pension benefit based on the pension plan rules.
Ancillary accounts are a great option if you have maxed out your RRSP room and are looking for additional ways to save for retirement. If you have unused RRSP room available, you might want to consider the following when deciding whether to contribute to an ancillary account or to an RRSP:
To open an ancillary account, please reach out to the FortisBC Pension Department for assistance.
Once enrolled, you can view a complete list of investment options and manage your My Canada Life account online or by calling the Canada Life Access Line at 1-800-724-3402.
You are responsible for managing the investments within your ancillary account and are provided with a range of investment options through the Canada Life investment platform.
If you have forgotten your online access ID or password, please contact the Canada Life Tech Line at 1-800-222-0775 and provide them with your employee number and group #64499.
The following tables provide the estimated projected cost of pension enhancements that may be purchased at retirement with an ancillary account balance, as well as the additional monthly pension that would be provided assuming retirement at each of the ages and dates shown.
If your ancillary account balance is less than the estimated cost at retirement, the increase in monthly pension would be a pro-rata of the estimated additional monthly pension.
These amounts are estimates only, provided for illustrative purposes in order to assist you with determining whether or not you might want to consider making voluntary ancillary contributions.
The illustrations are based on final average earnings at retirement of $100,000 and the Year’s Maximum Pensionable Earnings for 2024 ($68,500), as well as the noted service and retirement age.
If you do make ancillary contributions, your additional pension will be determined at retirement based on the accumulated balance in your ancillary account, your accumulated pension in the pension plan (based on your earnings, service, and age) and the elections you make at that time.
Option | Payment period | 5 years of service | 10 years of service | 20 years of service | |||
|---|---|---|---|---|---|---|---|
Estimated cost
| Additional monthly pension | Estimated cost
| Additional monthly pension | Estimated cost
| Additional monthly pension | ||
1. Joint and Survivor Benefit1 | Lifetime | $6,125 | $32 | $12,249 | $65 | $24,498 | $130 |
2. Bridge Benefit | Temporary, to age 65 | $81,039 | $885 | $162,079 | $1,770 | $162,079 | $1,770 |
3. Early Retirement Reduction | Lifetime | $17,642 | $99 | $35,283 | $199 | $70,566 | $397 |
4. Pension Indexing | 4% increase January 1st | $73,005 | 2 | $146,010 | 2 | $292,020 | 2 |
1. Assumes a Joint and Survivor 60% pension is elected.
2. Your pension would be increased by 4% each January 1st provided your ancillary account balance is sufficient to cover the estimated cost. If your ancillary account balance is less than the estimated cost, a portion of your pension would be increased by 4% each January 1st.
Option | Payment period | 5 years of service | 10 years of service | 20 years of service | |||
|---|---|---|---|---|---|---|---|
Estimated cost
| Additional monthly pension | Estimated cost
| Additional monthly pension | Estimated cost
| Additional monthly pension | ||
1. Joint and Survivor Benefit1 | Lifetime | $8,393 | $47 | $16,785 | $94 | $33,570 | $188 |
2. Bridge Benefit | Temporary, to age 65 | $54,233 | $1,040 | $108,465 | $2,081 | $108,566 | $2,083 |
3. Early Retirement Reduction | Lifetime | n/a | n/a | n/a | n/a | n/a | n/a |
4. Pension Indexing | 4% increase January 1st | $69,460 | 2 | $138,920 | 2 | $277,840 | 2 |
1. Assumes a Joint and Survivor 60% pension is elected.
2. Your pension would be increased by 4% each January 1st provided your ancillary account balance is sufficient to cover the estimated cost. If your ancillary account balance is less than the estimated cost, a portion of your pension would be increased by 4% each January 1st.
Option | Payment period | 5 years of service | 10 years of service | 20 years of service | |||
|---|---|---|---|---|---|---|---|
Estimated cost
| Additional monthly pension | Estimated cost
| Additional monthly pension | Estimated cost
| Additional monthly pension | ||
1. Joint and Survivor Benefit1 | Lifetime | $9,544 | $57 | $19,088 | $115 | $38,175 | $230 |
2. Bridge Benefit | Temporary, to age 65 | n/a | n/a | n/a | n/a | n/a | n/a |
3. Early Retirement Reduction | Lifetime | n/a | n/a | n/a | n/a | n/a | n/a |
4. Pension Indexing | 4% increase January 1st | $50,540 | 2 | $101,079 | 2 | $202,158 | 2 |
1. Assumes a Joint and Survivor 60% pension is elected.
2. Your pension would be increased by 4% each January 1st provided your ancillary account balance is sufficient to cover the estimated cost. If your ancillary account balance is less than the estimated cost, a portion of your pension would be increased by 4% each January 1st.
