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Pension:
Jan-March quarter pension $ performance from the four fund managers was a +2.5 %, but that
was lost with a very volatile second quarter. Quarterly reports may be viewed in the Faculty
Assoc. Office and in the Office of Human Resources. The unfortunate news is that after an
examination of fiscal year of 2001-2002 July 1, 01 - June 30, 02) we might expect a - 2 - 4 %
decrease in the money purchase portion of the plan. This takes into account the - 6 %,always
subtracted for the actuarial estimates for the stability of the plan.
So, if in fact this is accurate, you are forewarned that your monthly money purchase factor will
decrease by a certain % this coming fiscal year.
Northern Trust will appropriately send you a statement whenever any changes occur. This most
recent statement apparently reflects a slight increase based on some tax alterations.
Further information that has recently emerged is that 71% of the University Pension Plan (c.
$355 m.) is academic participation and 29% is staff (3 CAW unions) participation shared with
the University contributions. The CUPE union has now withdrawn their portion and administer it
themselves.
Both Faculty Association committees (D7 & Retirement/Benefits) have been meeting collecting
information, and preparing reports. Each of these committees has WURA representation
(D7=A.Metcalfe &J. Meyer, R&B= D.Briggs, J. Meyer, G. Olafson).
Other:
We are awaiting the completion of information documents on retirement benefits (pensions and health benefits) that form a "handbook" that will be placed on the respective web sites. Those persons using the University of Windsor's Internet services can easily request that the University "Daily News" be delivered on line. (www.uwindsor.ca) click on "news". Those
wishing details about CPP and other federal benefits go to the website: www.hrdc-drbc.gc.ca
(click on "seniors"). CARP (Canadian Association of Retired Persons) for a low membership fee
offers many services and an excellent magazine (Fifty Plus). Phone: 800-363-9736.
Retirees' Trust Fund
By Peter Burrell
Background
Members will recall that the recent Collective Agreement between the University and the Faculty
Association (WUFA) provided for the establishment of a Trust Fund to help subsidize the benefit
costs of retired members of the pension plan. The Fund will be funded principally from a portion
of the pension surplus in excess of an agreed contingency reserve. Funds will be transferred on
a monthly basis beginning in November. The total amount to be transferred to the Fund will
ultimately be somewhat in excess of $1 million. In addition the GST rebate from some pension-related services will also be added to this Fund. The income earned by the Trust Fund will be
available to partially subsidize benefit costs.
The University and WUFA agreed to establish a Retirees Trust Fund Committee to develop recommendations concerning the structure, governance and operation of the Fund. The University appointed Jim Butler (Director of Human Resources) and Dale Horniachek
(Financial Services); WUFA appointed Dan Britten ( Mathematics) and Peter Burrell
(representing WURA) to this Committee.
Progress Report
The committee held its first meeting in late March. The committee decided to have specialist consultants Watson-Wyatt prepare a report reviewing the various types of 'vehicles' which might be used to implement the Fund ( including tax implications) and to outline the governance and operational issues which need to be addressed. This report has just been received by the Committee and it will now be possible to move forward towards developing specific recommendations.
Inside this issue
Page 1. President's Report
Page 2. Campus News
Page 3. Campus News
Page 4. Association News
Page 5. Association News
Page 6. Association News
Page 7. Editorial News