Who we are
CWIPP is the Canada-Wide Industrial Pension Plan. The plan was set up in 1970 for
employees of companies whose unions have an affiliation with the Canadian Labour
Today, the plan boasts more than 23,000 members, including over 2,600 retired members,
and 104 participating employers and unions. The plan's Trust Fund holds more than $211 million in assets
– carefully invested to provide for the future pension of members.
CWIPP was designed specifically with small and medium-sized employers in mind. As
a result, it offers employers the advantages of low-cost centralized administration
and professional investment management.
It also offers members several important advantages, such as early retirement features,
portability, and survivor benefits. Even better, members do not contribute directly
to the plan. Their employer contributes on their behalf. (In effect these contributions
represent a form of deferred wages.)
How it works
CWIPP is what is known as a
target benefit pension plan. This means that pension benefits are based
on a pre-set formula, but are not guaranteed by the employer, union or government.
In other words, if there is a shortfall in the money available for pensions, the
benefit formula could be adjusted.
To help avoid a shortfall, the long-term financial health of the plan is monitored
continually. In addition, the money in the CWIPP Trust Fund – from which benefits
are paid – is invested based on clearly defined investment guidelines.
How its governed
CWIPP is governed by an independent
Board of Trustees. This board is made up of an equal number of employer
and CLC-appointed representatives, and an independent chair.
The Board is responsible for various aspects of the plan, as well as the plan's
Trust Fund. For example,
it establishes investment policy, monitors investment performance and approves plan
Trustees have a legal obligation to act in the best interest of plan members. This
obligation takes precedence over allegiances to other parties or interests – including
the organizations that have appointed them.