Glossary - Pension Terms

Many of the pension terms used throughout this brochure are explained below:

Common-Law Partner 

Under The Pension Benefits Act of Manitoba, a common-law partner of a member of a pension plan or former member of a pension plan means:

  • A person who is in a registered common-law relationship with the Plan member or former Plan member under section 13.1 of The Vital Statistics Act, or 
  • A person who is not married to the Plan member, or former member, but has lived with the Plan member, or former member in a conjugal relationship for a period of:
    • At least three years, if either of them is married,  or 
    • At least one year, if neither of them is married. 

Common-Law Relationship

The relationship between two people who are common-law partners.

Commuted Value

The present day dollar value of your lifetime monthly pension converted into a lump sum amount. This benefit is locked-in to eventually be used for retirement purposes, unless your pension benefit is considered a small benefit under The Pension Benefits Act of Manitoba. Please refer to the definition of small benefit in this section for further information.

Deferred Pension

A member who terminates Plan membership for a reason other than retirement or death, is entitled to a deferred monthly pension equal to the amount determined in accordance with the HEPP Plan Text.

Early Retirement

When a member retires prior to age 65 (the Plan’s normal retirement date) they must be at least 55 years of age, or they must reach their Magic 80 Date to be eligible for an early retirement pension.


Any person who is employed by a Participating Employer.


A signatory employer or a Participating Employer.

Excess Contributions 

Excess contributions are contributions made in excess of 50% of the commuted value of your pension benefit. You are entitled to a refund of any excess contributions, plus interest.

Excess contributions may be transferred to an RRSP or received as a lump sum cash refund. Excess contributions can also be used to increase a member’s pension at retirement.

Highest Average Earnings

The average of the member’s highest five years of annualized earnings from the last 11 years immediately prior to termination, retirement or death. If the member has not completed five years of service, the actual years of annualized earnings available will be used to determine the average earnings.

Locked-in Pension Benefits

Pension benefits that cannot be withdrawn as a lump sum payment. Only under the following circumstances may a member withdraw locked-in funds:

  • If the member is at least 45-years old and has 10 years of service and terminates from the Pension Plan, they may unlock 25 percent of the value of the pension earned between July 1, 1976, and December 31, 1984
  • If the pension benefit is considered a small benefit and the member has terminated from the Pension Plan, it will be paid as a lump sum amount. (For further information, please refer to the definition of small benefit.)
  • If the member has a shortened life expectancy of less than two years.

Magic 80 Date

The date at which a member’s age added to their years of employment service equals 80. Members are entitled to an unreduced pension benefit when they reach their Magic 80 Date.

Participating Employer

A healthcare facility or related organization that has signed a Participation Agreement and participates in HEPP.

Pension Benefit Credits 

The value, at a particular time, of the pension benefits and any other benefits provided under the Plan for which an employee has become entitled.

Signatory Employers and Unions, or Signatory Boards (also referred to as the Settlors)

The original employers and union groups that merged together to create the Plan; the parties to the Trust Agreement.

Small Benefit

Under The Pension Benefits Act of Manitoba, a member’s pension benefit is considered a small benefit if:

  • The annual pension that would be payable at retirement is less than 4% of the YMPE, or
  • The pension has a commuted value of less than 20% of the YMPE.

Note: The YMPE amount for the year in which the member’s termination, retirement or death occurs is used in the calculation.

A member’s small benefit can be transferred to an RRSP or paid as a taxable lump sum payment.  


Under The Pension Benefits Act of Manitoba, the person who is married to the Plan member or former member.  

Total and Permanent Disability

A physical or mental impairment that prevents a member from engaging in any employment for which they are reasonably suited by virtue of their education, training or experience and for which there is no reasonable expectation that the member will recover from the disability. The physical or mental impairment must be certified in writing by a qualified medical doctor who is acceptable to the trustees and licensed to practice in Canada or where the member resides.

Year’s Maximum Pensionable Earnings (YMPE)

The maximum annual earnings on which CPP contributions and benefits are calculated. The YMPE is set annually by the CRA to reflect the average industrial wage in Canada. It is also used to determine the amount you contribute to HEPP.

© 2017 HEB Manitoba


Disclaimer - This website provides a basic overview of the Healthcare Employees' Pension Plan (HEPP) and the Healthcare Employees' Benefits Plan (HEBP) (collectively the HEB Manitoba Pension and Benefit Plans). Not all employers participate in all Plans. Please check your eligibility for benefits with your employer.

HEB Manitoba is a name notation registered by the Healthcare Employees’ Pension Plan – Manitoba and the Healthcare Employees’ Benefits Plan – Manitoba and under which each of their respective undertakings is carried out.

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