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The Retirees' Newsletter
The Retirees's Association ( Faculty, Librarian, Administrator), University of Windsor, Windsor, Ont. Canada
Vol VIII, No. 1, February 1998
Association Activities |
New Contract Negotiations in 1998
Between The University and the Faculty Association
Where Do The Retirees' Stand?
Normally, in a contract year the Faculty Association sends out a questionnaire to all its
members on campus for input on matters of concern to them.
Last Fall, for the first time, we were able to extend that survey to all members of the
Retirees' Association. Many of you were prompt in sending your input and concerns as a retiree.
President, Kumar Chatterjee and members of the Executive Committee sincerely thank you for
your responses and hope from time to time, we are able to communicate on matters of concern
and get your views.
Your suggestions were formulated in a position paper and approved by the Retirees' Association
Executive Committee(4 in favor and 2 abstaining) and forwarded to The President of the Faculty
Association (Dr. Jang B. Singh), and the Contract Committee members (Ms.Katherine Ball; Mr.
Brian Brown; Dr. Gordon Drake; Dr. Veronica Fraser; Dr. Frank Lemire; Dr. Benjamin Meyer
and Dr. Gordon Olafson).
The following position was communicated:
The Retirees Association of Faculty, Librarians and Administrators has two major concerns:
1. Pension Plans
2. Health Benefits Plans
Our objective is two-fold :
a) to ensure that fairness and equity in pension income exists among the retirees and
b) attempt to improve our benefits in a general sense.
Pension Plans:
At the University of Windsor, we have two Pension Arms The Minimum Guarantee Plan (MG)
and the Money Purchase Plan (MP) which should grow in tandem and provide equitable income
for the retirees. Currently, the increases in the MG are restricted by the Consumer Price Index
(CPI) within the percentage limits .
What this means is, that it guarantees, that those on the MG will fall behind the CPI significantly
over time. A study by Norm Shklov which is contained in the newsletter # 19 shows that during
the 1980's those on the MG fell behind significantly, while those on the MG from 1990 to the
present kept slightly ahead of the CPI due to increases of 5 and 2.5%.
According to the Tax Regulations governing increases in pension income for a MG plan, the
following increases are allowed:
A) The CPI as an indexation factor
B) Up to a maximum of 4% indexing per annum
C) Indexation tied in with the performance of a pool of assets
D) A combination of A to C
In our plan, we have a combination of A and B, i.e. the MG can increase with the CPI, but
limited to certain bracketed percentages.
According to the regulations, we can have increases restricted to say, just A) alone or B)alone.
For example, if we had B alone, we could simply say that we wish our plan to increase at 4% each
year, and leave it at that. At least this would guarantee an average increase closer to the average
increase which we have seen for the MP over the last 15 years, instead of falling behind as we
have.
Therefore, we suggest:
1. that the MG part of the plan be indexed at 4% per annum.
2. that all changes be retroactive.
3. that when someone is at or reaches the upper limit of pension income of $ 1,722 x number of
years of service, that cash bonuses from pension surpluses be used to compensate these
individuals, and that the Government be appealed to on their behalf.
4. that retirees be given the same protection as full-time members with regards to health benefits
plans..
5. that each retiree receive a cash bonus of $ 1,000 for each year of the contract to offset costs of
health care, whether it is to pay for the premiums for a health benefit program or pay the fees to
homeopath or naturopath, or other alternative medical treatments depending upon the needs of the
retiree.
6. that all surviving spouses be allowed to join the Green Shield plan regardless of age or any
other factor which now places restrictions on membership in such plans.
Note:It was pointed by one of the members of the Executive that currently all surviving spouses
can join the Green Shield Plan.
However, during this latter period, as we know, those on the MG fell
a way behind those on the MP. Therefore, given the economic conditions, the MG is guaranteed
to fall behind either the CPI or the MP at any given time during a lifetime.