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The Retirees' Newsletter

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

Issue #19 -- October, 1996

WHAT DOES THE RECENT NEW CONTRACT MEAN TO RETIREES?

PRINCIPALLY, IT MEANS INCREASES IN MINIMUM GUARANTEE LEVELS

In early October the University and the Faculty Association reached agreement on a new two-year contract to expire on June 30, 1998. Points of particular interest to retirees are the following:

For those who retired prior to September 1, 1995, it means:

A 2.5 PER CENT INCREASE IN YOUR MINIMUM GUARANTEED PENSIONS

THE BIG NEWS for those who retired before September 1, 1995, is that an increase of approximately 2.5 per cent was negotiated in their minimum guarantee That increase is to be effective as of July 1, 1996. This means that, the minimum guaranteed pensions of all those retirees will go up by 2.5 per cent. Members should check out the arithmetic for their own cases. It is expected that the retroactive portion back to July 1^st will be sent out soon.

For members retiring this year that is, effective as of September 1, 1996, it means:

A REVISED FORMULA FOR CALCULATING YOUR MINIMUM GUARANTEED PENSION

FOR CURRENT YEAR RETIREES, the new formula used to calculate the Minimum Guaranteed Benefit is: 1.35% times the best average earnings not in excess of the Average Canada Pension Plan Base plus 2.00% times the best average earnings in excess of the Average Canada Pension Plan Base, multiplied by the member's Pensionable Service. (These factors were 1.3% and 2.0% respectively).

The Minimum guarantee formula has been changed to reflect the effect of the increasing "Average Canada Pension Plan base". The "best average earnings", which was defined as "the average of the best four years of service" now reads as "twelve times the average of the member's monthly earnings in the 48 months of highest earnings (not necessarily consecutive months)

Other Items of Interest to our Members:

1) The grievance on behalf of the 20 women who were omitted from the pension plan many years ago has now been resolved. The terms of the compensation agreed on are too complicated to discuss here, but the details will be published in the Collective Agreement Document. Women members who were affected should contact the Faculty Association.

2) There is no change in the provisions which were intended to provide for members whose service to the University began before the Pension Plan was started, namely 1955.

Our Social Committee Announces A DINNER AND GAMES NIGHT

SATURDAY, NOVEMBER SECOND

6.00 P.M.