Table of Contents (all issues in this volume)Main indexRETIREES NEWSLETTER
Number 7, Apr/May, 94
PENSION CHANGES: A SUMMARY PREPARED BY NORM SHKLOV
The following are the key revisions in the Pension Plan which resulted from the 1993 contract negotiations between the University and the Faculty Association. They have been approved by both and are now in effect.
1) Calculation of Minimum Guaranteed Benefit
Effective July 1, 1993, the minimum guaranteed Benefit is changed to:
(a) 1.30% of the member's Best Average Earnings not in excess of the Average Canada Pension Plan Base. (Previously it was 2.5%), PLUS
(b) 2.00% of the member's Best Average Earnings in excess of the Average Canada Pension Plan base,
This total MULTIPLIED BY the member's Pensionable Service.
2) Best Average Earnings
Effective July 1, 1993, for purposes of calculating the Minimum Guaranteed Benefit, the Best Average Earnings will be based on the member's best consecutive 48 months of earnings. (Previously the best consecutive 60 months)
3) Maximum Pension Rule
Effective January 1, 1992, the Revenue Canada maximum pension test will be applied to the form selected by the member, rather than the normal form of pension. All calculations will be subject to the Revenue Canada Maximum Pension Rules.
4) Indexation Formula for Minimum Guaranteed Benefit Increases
Effective July 1, 1994, the present indexation formula for the Minimum Guaranteed Benefit, and all references to it, will be deleted and replaced with the following formula:
| Percentage Increase in C.P.I. | Percentage Increase in Annual Pension |
| Zero to 2% | 100% of the CPI Increase |
| Above 2% but below or equal to 4% | 2% |
| Above 4% but below or equal to 8% | 50% of the increase in CPI |
| Greater than 8% | 4% |
5) Pension Increases for Retirees
(a) Effective July 1, 1993, the pensions payable in respect of the Minimum Guaranteed Benefits and VER Benefits to members who retired prior to July 1, 1990, will be increased by:
(i) the increase in the CPI from retirement date to 1 July 1993, MINUS
(ii) the pension increases previously granted to the member under the Plan.
Such increase shall not exceed 5% of the member's pension.
(b) Effective July 1, 1993, pensions payable for Minimum Guarantee Benefit and VER Benefits to members who retired on or after July 1, 1990, and before July 1, 1993, will be recalculated based on the member's Best Average Earnings using the member's best consecutive 36 months of Earnings.
Such increase in the member's pension will not exceed 5%.
Thus all pensions will be recalculated and there will be revisions ranging from 0 to 5%. These increases should be incorporated in the May 1, 1994, pension cheques, according to word received from the University administration.