Retirees' Newsletter

Faculty and Librarian Retirees' Association, University of Windsor

Nov/Dec .1994 Issue 10

UPDATE ON THE PENSION AND HEALTH CARE PLANS
by Norm Shklov, President

Performance of the Pension Fund

AS WAS MENTIONED in The Retirees' Newsletter, Issue No.9, pension news was good for all retirees receiving the minimum guaranteed pension. Increases amounting to 1.028% were received by all these people.

HOWEVER, retirees receiving money purchase pensions didn't fare as well. They underwent decreases of up to 3.6%. This was the result of poor performance by the Pension Fund.

Replacement of one of the Investment Companies

Until recently, the two companies that did the investing of the money in the Pension Fund were GRYPHON, and JARISLOWSKY, FRASER and COMPANY. LTD. The University Pension Committee, though not citing poor performance as a specific reason, decided to replace the second of these, namely Jarislowsky, Fraser, with another company, SCEPTRE. The Committee hopes that Sceptre will do better than its predecessor in investing its portion of the Pension Fund.

The Roller-Coaster of Money Purchase Pensions

THE EXECUTIVE OF THE RETIREES' ASSOCIATION again considered the undesirable effects of the sharp annual increases and decreases which have been experienced in the Money Purchase pensions. It concluded that annual increases amounting to four-year running averages of the changes, would eliminate the sharp swings in either direction without affecting the total pension. The Executive thus recommended to the Faculty Association and to the University that they examine very seriously the feasibility of this averaging procedure in the next contract negotiations which take place two years from now.

The Health Plan: Prescription Drug Dilemma

The cost of prescription drugs continues to rise and, with it, the premiums for the Prescription Drug Option of the Retirees' Health Plan. The immediate reason for the high premiums is a phenomenon called "adverse selection". This derives from the fact that only those who are very frequent users of prescription drugs subscribe to the Plan. Since the subscribers (only a half dozen or so in the case of our plan) include only the very high users, the insurer must adjust rates accordingly.

The Retirees' Association raised the question with the University: is there any other group with which we could merge for the purpose of obraining more favourable rates for this option? If there were none, then the Association suggested that the Health Plan be put out for bids by other carriers.

The University agreed to pursue these approaches in an effort to obtain lower health care premiums, especially in the case of the Prescription Drup Option.

IDENTITY CARDS

WE'RE CHECKING OUT THE COSTS OF PRINTING IDENTITY CARDS

The Association is checking out the cost of having membership cards printed. This is in response to suggestions made at the Fall meeting. Association members should have a means of identifying themselves as retirees of the Univeristy. Such cards would be wallet-size and would verify your membership in the Faculty and Librarian Retirees' Association.
ANNUAL $10 DUES NOW DUE

JUST A REMINDER: DUES FOR 1994-1995 ARE NOW PAYABLE

Just a reminder that the Association's annual fee of $10. is now payable for the year 1994-1995. Our year runs from Sept to Aug. Dues, of course, are payable at any time, but if possible please pay them by Dec. 31st. Just mail your $10. cheque to: Secretary-Treasurer, Fac/Lib Retirees' Association, University of Windsor Post Office, Windsor, On., N9B 3P4.

Page one (Issue index)Next page