12.01      Defined Contribution Plan

1. Employees of Andres Wines Ltd. who transferred to Canrim from Port Moody on or about January 1, 2006 shall continue to be eligible for and covered by the Andres Wines Ltd. defined contribution pension plan or such comparable plan as may be agreed to by the Union.
   
   
2. All new employees hired at Canrim after December 29, 2005 and those identified in the Consent Order of the Labour Relations Board shall be covered by the Andres Wines Ltd. defined contribution plan or such comparable plan as may be agreed to by the Union, upon becoming eligible for admission to the plan.
   
   
3. Complete details of the defined contribution plan shall be provided to the Union and become part of this Agreement.
   
   
4. Contributions to the Plan shall be based upon the employee’s annual regular pay (straight-time wages). Contributions shall be as follows:

                        OPTION A              OPTION B
                    Employee  Employer    Employee  Employer
   Employee with 
   less than 
   10yrs service       1%        5%          6%        6%
   
   Employee with
   more than 
   10yrs service       2%        6%          4% or     8%
                                             more
   

5. The Plan is voluntary upon employees as to participation.
   
   
6. Each participating employee shall have full vesting rights after two years employment and participation re the Company’s contributions made on his behalf.

12.02      Defined Benefit Plan

1. Employees of Canrim Packaging Ltd. as at and prior to December 29, 2005 (as more specifically identified in the Consent Order of the Labour Relations Board) shall continue to be eligible for and covered by the existing defined benefit plan known as the Calona Wines Limited Trusteed Retirement Plan as amended and restated effective June 1, 1982 including amendments up to December 29, 2005 and the Company shall continue to fund this Plan for those eligible employees.
   
   
2. Each employee covered by this Plan shall be provided with a description of the Plan in a separate booklet.
   
   
3. The Company agrees to supply the Union with a copy of the Pension Plan information that is submitted to Canada Revenue Agency as required.
   
   
4. The Company will make every effort to provide pension statements by the end of the first quarter following the close of the Plan year.
   
   
5. The parties to strike a pension review committee comprised of two representatives from the Union and two representatives from management, which will meet quarterly to review the pension document and the pension fund. The pension actuary shall attend as required.
   
   
6. The Company shall provide the Union with a letter stating that the Company will not remove any cash from the fund resulting from any actuarial surplus and in the event of Plan wind-up said surplus would be divided between the active and retired members in relation to their years of credited service. The foregoing shall in no way prevent the Company from taking “contribution holidays” either required or permitted under the relevant pension legislation.
   
   
7. The parties have agreed to implement an early retirement bonus provision for the term of this Agreement, for employees retiring under this defined benefit plan. The bonus to be based on an annual cash payment on the anniversary date of the employee’s retirement of 85 per cent of vacation entitlement saved less vacation costs incurred by the replacement of the employee.
   
   

12.03       The Company shall contribute $150.00 semi-annually towards the cost of basic medical coverage for employees retiring between the age of 60 and 65 with twenty or more years service. Such contributions shall cease at age 65.

12.04       The parties have agreed to implement an early retirement bonus provision for the term of this Agreement. The bonus to be based on an annual cash payment on the anniversary date of the employee’s retirement of 85% of vacation entitlement saved less vacation costs incurred by the replacement of the employee.

12.05       Post Retirement Health Care Spending Account

1. Upon retirement all eligible employees will be registered in a health care spending account (HCSA). The amount available in the account will be up to $750.00 for couples or $375.00 for single employees per calendar year.
   
   
2. To be eligible to be registered in a HCSA the employee must have a seniority date before May 31, 2008, must have a minimum of 10 years service at the time of retirement and must have retired from active employment or while on worker’s compensation benefits.
   
   
3. The HCSA will be implemented as of the eligible employee’s retirement date. The amount of the HCSA will be prorated for the balance of the calendar year in which the retirement took place.
   
   
4. Contributions to the HCSA will cease on January 1 of the calendar year after the employee turn 75 years of age. For example, if an eligible retired employee were to turn 75 on September 9, 2025, the HCSA will close effective January 1, 2026.