Joint Committee Resolution re Pension Plan Amendments

Joint Committee Resolution re Pension Plan Amendments

In the original settlement (part 5 in both the librarian and faculty agreements), there was the potential for some confusion as to what would lead to a reduction in pension contributions by faculty and academic librarians.  The agreement was written such that employee contributions would be cut if employer contributions fell below certain fractions of “total employee contributions”.  While the preamble is clear as to what was meant, in the body of the agreement it could have been clearer that what was intended by “total employee contributions” was employee contributions not including any special adjustment under this provision.  Otherwise there is a circularity.  In any case, this was resolved in an entirely collegial fashion.  The Pension Trust Committee amended the Pension Plan on this point in a way consistent with the intentions of the parties to the MUFA Administration remuneration settlement and the Joint Committee passed a resolution on June 7, 2006 supporting that language.  Below is the Pension Plan amendment in question.

New Section 7.04 of Pension Plan 2000 (approved by the Board of Governors, June 15, 2006):

7.04 Special Adjustments to Member Required Contributions for Faculty Members and TMG Members and Librarians

Notwithstanding the above in Section 7.01(a)(ii), effective July 1, 2006, the following special adjustments to Member required contributions will apply:

(a) if the total University contributions to the Plan determined and made for any month after June 2006 are less than 90% but greater than or equal to 75% of the total Member contributions calculated pursuant to Section 7.01(a) before any special adjustments under this Section 7.04 are made for that month, then Faculty Member and TMG Member and Librarian contributions to be made to the Plan pursuant to Section 7.01(a) in respect of that month will be calculated as one-twelfth (1/12) of: 3.75% of his/her Regular Annual Salary up to the current YMPE and 4.875% of his/her Regular Annual Salary in excess of the current YMPE;

(b) if the total University contributions to the Plan determined and made for any month after June 2006 are less than 75% but greater than or equal to 50% of the total Member contributions calculated pursuant to Section 7.01(a) before any special adjustments under this Section 7.04 are made for that month, then Faculty Member and TMG Member and Librarian contributions to be made to the Plan pursuant to Section 7.01(a) in respect of that month will be calculated as one-twelfth (1/12) of: 2.5% of his/her Regular Annual Salary up to the current YMPE and 3.25% of his/her Regular Annual Salary in excess of the current YMPE;

(c) if the total University contributions to the Plan determined and made for any month after June 2006 are less than 50% but greater than or equal to 25% of the total Member contributions calculated pursuant to Section 7.01(a) before any special adjustments under this Section 7.04 are made for that month, then Faculty Member and TMG Member and Librarian contributions to be made to the Plan pursuant to Section 7.01(a) in respect of that month will be calculated as one-twelfth (1/12) of: 1.25% of his/her Regular Annual Salary up to the current YMPE and 1.625% of his/her Regular Annual Salary in excess of the current YMPE; and

(d) if the total University contributions to the Plan determined and made for any month after June 2006 are less than 25% of the total Member contributions calculated pursuant to Section 7.01(a) before any special adjustments under this Section 7.04 are made for that month, then Faculty Member and TMG Member and Librarian contributions to be made to the Plan pursuant to Section 7.01(a) in respect of that month will be zero (0).

For sake of greater clarity the adjusted Member contributions determined and made under this Section 7.04 for a Faculty Member, a TMG Member, or a Librarian shall not exceed the amounts determined under Section 7.01(a)(iii), but using the relevant adjusted contribution formula applicable in this Section 7.04 in the calculation under Section 7.01(a)(iii)B.

For sake of greater clarity, in this Section 7.04, total University contributions to the Plan means University contributions made to the Fund for the Plan pursuant to Section 7.01(c), and total Member contributions means Member required contributions calculated pursuant to Section 7.01(a) in respect of all Members of the Plan.