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The Retirees' Newsletter

The Faculty and Librarian Retirees' Association, University of Windsor, Windsor, Canada

Issue # 19 -- October, 1996

The Newsletter

The Retirees' Newsletter is published by the Faculty and Librarian Retirees' Association of the University of Windsor, five times per year: -- in February, April, June, October and December.

Its main purpose is to inform faculty and librarian retirees on matters of direct interest to them ­ such as pensions, benefits, association activities, etc.

The Newsletter welcomes items from readers -- relating any concerns about retirement, personal experiences, observations, arguments, and creative work of all kinds.

Items intended for publication must be received by the 25th of the month before publication.

Editor Bill Phillips

Assoc. Editor Joan Hackett

Send items for publication to

Bill Phillips,

1186 Grand Marais Road West,

Windsor, N9E 1C7.

E-mail: philli3@uwindsor.ca

The Association address is:

c/o Univ, of Windsor Post Office

Windsor, ON. N9B 3P4..

ASSOCIATION FACTS

Our money comes solely from dues. We have no other income. We have no office ,we have no secretaries, no research assistants, no telephone, no hired help. We have only our members...

A REGULAR FEATURE:

NORM SHKLOV'S PENSION UPDATE

THE NEWS CONCERNING THE PENSION FUND was good this year. The Money Purchase adjustment was an increase of 6.92 per cent, effective July 1st, 1996.

The increase in the Minimum Guaranteed Benefit amounted to 1.83 per cent, effective the same date. This was based on the increase in the Consumer Price Index.

Retirees on the Money Purchase Pension should be elated with this increase, especially since it comes right after the previous year's increase of 7.25 per cent.

Retirees on the Minimum Guaranteed Pension will, of course, not be that happy. However, they should still take heart. Although their pension increase was only 1.83 per cent, their Money Purchase component ­ that is, the portion of their pension coming from their money purchase account, has increased by 6.92 per cent.

THIS WILL BRING NEARER THE POINT IN TIME when their Money Purchase component will overtake their Minimum Guaranteed Pension. After that point, they will be on the Money Purchase pension, and will receive the full annual Money Purchase adjustment.

MANY RETIREES WONDER "HOW LONG WILL IT TAKE FOR ME TO GET ON THE MONEY PURCHASE PENSION"? Below, is a short table which gives estimates, in years, for various situations.

Consult the letter you received from Human Resources, dated about August 26th. Let us call "A" the amount in column 6 of that table. And let us call "B" the amount in column 7 of the same table. Then A/B represents the quotient MGB/MPP, both at July 1, 1996.

Now let us designate by "n" the estimated number of years required to get on to the Money Purchase Pension, given your particular quotient Then given your quotient the following are the estimated values of "n" in your case. 


 A/B     N      A/B    N 

1.05    2      1.25   8

1.10    4      1.30   9

1.15    5      1.35  10

1.20    7      1.40  12


These results were obtained by using the formula worked out on Page 6 of Newsletter #7, April/May 1994. In those calculations, the average money purchase adjustment was taken as 5 per cent ­ which it was, over the last 16 years ­ and the average increase in the minimum guarantee was taken as 2 per cent ­ which it was, over the last 16 years.If, when actual rates A/B are calculated, they are not exactly as in the first columns above, but the corresponding value of "n" can be found by interpolation.

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