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The Retirees' Newsletter
The Faculty and Librarian Retirees' Association, University of Windsor, Windsor, Canada
Issue # 20 -- December, 1996
NORM SHKLOV'S REPORT ON PENSIONS, BENEFITS, ET CETERA
(The following is a digest of Norm Shklov's remarks to the Fall Meeting. Itincorporates also
some main points from Jim Skinner's proposed remarks)
FOR THE PENSION PLAN YEAR ENDING JUNE 30TH, 1996, the adjustment to the Money Purchase Pension was an increase of 6.92%.
This reflected the earnings of the Pension Fund. The adjustment to the Minimum Guaranteed Benefit was an increase of 1.83%. This reflected the increase in the Consumer Price Index.
THE CORRESPONDING RESULTS for the preceding Pension Plan Year, ending June 30th, 1995, were an increase of 7.25% for the Money Purchase Pension, and an increase of 1.09% for the Minimum Guaranteed.
THUS, those on the Money Purchase Pension have received substantial increases in two consecutive years, while increases for those on the Minimum Guaranteed have been much more modest. Those in the latter group should be mindful, however, that the earnings of the Fund will increase their Money Purchase Accounts as well, and so hasten the day when their corresponding Money Purchase Pension overtakes their Minimum Guaranteed Benefit.
LOOKING AT THE RECENT NEW COLLECTIVE AGREEMENT, it appears that the only change relevant to retirees was an increase of 2.5% in the Minimum Guaranteed Benefit. While this would increase the pension of those on the Minimum Guarantee, it could lengthen by a relatively small amount the time before they attain their Money Purchase Pension.
REGARDING HEALTH BENEFITS, though a merger of the Health Plans of the active faculty and the retirees was not achieved, I am informed that Mr. Skinner is still attempting to bring about such a merger by other means.
ONE OTHER ITEM, which James Skinner wanted brought to the attention of the Fall Meeting, had to do with automobile insurance. Effective Nov. 1, 1996, there were to be changes in the Ontario Insurance Act that could have special impact on retirees, specifically in lowering car insurance rates.
The actual situation is that the insurance companies could lower rates for retirees by 5% to 10%. Those interested should contact their insurers. They should, of course, check very carefully the options that are offered, which could possibly involve differing levels of deductibles some of which might offset the 5% to 10% savings.
(At the Fall Meeting I transmitted some incorrect information regarding the rates for retirees. Instead of a reduction in premium rates, I stated that the provincial sales tax on premiums would be waived. This is not right, and I apologize for the error).
(Norman Shklov is Founding President of the Association, and is a recognized authority on our Pension Plan)