Docstoc

Faculty Plan - University of Windsor

Document Sample
Faculty Plan - University of Windsor Powered By Docstoc
					University of Windsor New Faculty
         Orientation 2006




             Welcome !


                         Monday, July 10, 2006

                                            1
Overview
    Types of Pension Plans
    Faculty Pension Plan
    Life as an Active Member
    Joining the Pension Plan
    Retirement
    Survivor Options
    Terminating Membership
    Past Service Pension Adjustments
    Monthly Pension Indexing
    Overview of Health, Dental, Life and additional benefits




                                                                2
Types of Pension Plans
   Defined Benefit Plans (DB)
       Benefit is defined by a formula
       Pension at retirement is always known
       Most often the employer assumes the investment risks / rewards


   Defined Contribution Plans (DC)
       Contributions are defined by a formula
       Pension at retirement is unknown
       Most often the employee assumes the investment risks / rewards


   Hybrid Plan – a combination of DB and DC
       Attempts to provide the best of both worlds



                                                                         3
Faculty Pension Plan
   Hybrid Pension – Two Components

       Money Purchase (MPP) (Defined Contribution)

    AND

       Minimum Guarantee (MGP) (Defined Benefit)



                                                      4
Faculty Pension Plan
   Money Purchase (Defined Contribution)

       6% Member Contribution PLUS 6% University Contribution credited
        to individual member accounts along with fund rate of return

       Money Purchase Pension (MPP), payable monthly at retirement

       MPP = Total MPC Account at Retirement
                Actuarial Annuity Factor

         • Actuarial assumptions include mortality, retirement age, and spousal
           age.



                                                                                  5
Faculty Pension Plan
   Minimum Guarantee (Defined Benefit)

       1.5% of Best Average Earnings (BAE) up to Final
        Average YMPE (FYMPE)

    PLUS
       2 % of BAE above FYMPE

    Multiplied by
       Years (and part years) of Pensionable Service in the
        plan


                                                               6
Plan Definitions
    BAE = 12 X average of Members monthly earnings in the 48
     months of highest earnings, (not necessarily consecutive) prior to
     retirement.

    Earnings = Member’s basic nominal salary, excludes overload,
     allowances, bonuses or stipends, intersessions, etc.

    YMPE = Year’s Maximum Pensionable Earnings in effect under the
     Canada Pension Plan.
      • (2006 = $42,100) (2005 = $41,100) (2004 = $40,500) (2003 = $39,900)


    FYMPE = Average of YMPE during same period used to determine
     your BAE.



                                                                              7
Life as an Active Member
   Contributions – 6% of nominal salary, with matching University contribution,
    subject to CCRA contribution limits. This includes nominal salary paid in the
    form of a Research Grant. Special rules for certain types of leaves such as
    sabbaticals, education leaves.

   Once an enrolled active member you may not opt out.

   Pensionable earnings, service and contributions captured monthly

   Immediate Vesting – ownership of pension benefits

   Pension Adjustment – T4 - deemed value of one year plan participation –
    reduces personal RRSP room

   Annual Pension Statement – within 6 months of plan year end

   Plan Year runs from July 1st to June 30th of each year

                                                                                    8
Faculty Pension Plan – Joining the Plan
 Full Time, Permanent Faculty
   Compulsory membership coincident with or next following
     Employment Date.

 Limited Term Appointments
   Voluntary participation coincident with or next following Employment
     Date.

 Sessional Instructors and Part Time Employees
  Voluntary participation coincident with or next following the completion of 24
  months of Continuous Service provided you have:
  (1) earned at least 35% of the CPP Year’s Maximum Pensionable Earnings or
  (2) worked at least 700 hours
  in each of the two (2) immediately preceding calendar years.



                                                                               9
Faculty Pension Plan – Retirement

Normal Retirement Date           - July 1st following the last day of the contract year in which the member
                                   attains age 65
                                 - minimum age 65 to receive an unreduced pension

   Faculty hired after September 1, 1970 retire on the June 30 th following the 65th birthday

   Faculty hired prior to September 1, 1970 retire on the August 31 st following the 65th birthday

   Article 47:04 of the Collective Agreement


Early Retirement Date            - anytime after age 55
                                 - MPP pension is account balance annuity
                                 - MGP subject to actuarial reduction
                                 - subject to University approval




                                                                                                              10
    Example of Annual Pension Payable
   Date of retirement           =    September 1, 206
   Pensionable Service          =    35 years
   Best average earnings        =    $90,000
   Final average YMPE           =    $40,900
   MPC Account Balance          =    $500,000
   Actuarial annuity factor     =    10.2203

   MPP      =   $500,000/10.2203 = $48,922.24 per year

   MGP     =    [35] x [0.015 x $40,900 + 0.02 x ($90,000 - $40,900)]
                                     = $55,842.50 per year

   Basic Benefit payable at retirement = $55,842.50 per year

                                                                         11
Faculty Pension Plan – Survivor Options
   Death while active – Greater of MPP account or MGP value
      Lump sum or Spousal Monthly Pension


   Death after Retirement – based on option chosen at retirement
      If single at retirement or with spousal waiver
         • Life Only, Life 5, 10 or 15
      If legal spouse at retirement or no spousal waiver on file
         • Joint and Survivor 60, 66 2/3(Guar 5), 75 or 100%

   Basic pension reduced 10% to 20% to provide spousal benefit

   Spouse and member can waive 60% option

   In ALL cases, options are permanent on 1st date of retirement
                                                                    12
    Faculty Pension Plan – Terminating before
                   Retirement
   Termination Benefit is the Greater of:
        Money Purchase Component Account balance to-date
        Commuted value of Minimum Guaranteed Pension earned to-date

   Transfer Options:
        Transfer termination benefit to a locked-in vehicle if employed > 24 months
        Transfer termination benefit to a non locked-in vehicle if employed < 24 months
        Leave benefit in plan for deferred pension at a future retirement date
        Transfer to a new employer, if allowed

   At Retirement - In Lieu of Pension, Members MAY transfer entitlements
    from plan
        Considered a termination, not a retirement
        Forfeit Minimum Guarantee Pension, lifetime pension indexing rights
        Higher investment fees, potentially greater investment risk to member
        Forfeit rights to Benefits, Tuition Remission, H.K. memberships etc.
        Forfeit future Surplus sharing
                                                                                           13
Past Service Pension Adjustments
   What are they?

       Adjustments most often created by retroactive pension plan
        improvements
         • Example: MGP formula change from 1.45% / 2% to 1.5% / 2%


       University must calculate value of retroactive improvement and
        report this to Canada Customs and Revenue Agency (T215)

       Further reduces personal RRSP room and sometimes forces
        RRSP withdrawals


                                                                         14
    Faculty Pension Plan – Indexing Monthly Pension
   Both the MPP and MGP adjusted every July 1

   MPP adjusted by the fund rate of return in excess of 6% and an
    additional adjustment for mortality experience – can increase or
    decrease

   MGP increase based on the increase in the Consumer Price Index

   After the MPP and MGP have been adjusted (plus or minus), we
    compare the two, the larger amount becomes the new pension payable
    starting at July 1st

   Indexing rights passes to those with a Survivor pension


                                                                       15
Faculty Plan – Health Insurance Overview
   Benefits are effective with your date of employment.
   Green Shield provides single or family coverage.
   Coverage includes:
        Drugs
        Semi-private hospitalization
        Extended health services
        Out of Province/Country coverage – referral / emergency
        Vision
        Audio

   Health benefit premiums are paid by the University
   Subject to $10 Single / $20 Family annual deductible

Web based subscriber online access – www.greenshield.ca


                                                                   16
Faculty Plan – Dental Insurance Overview

   Benefits are effective with your date of employment.
   Green Shield provides single or family coverage.
   Coverage includes:
       80% coverage for Basic & Comprehensive Services
       80% coverage for Major Restorative Services
       50% for Orthodontic Services - $3,000 individual lifetime maximum
       Basic services cover recalls once every 9 months
       Dental services may be subject to limitations


   Dental benefit premiums are paid by the University


                                                                       17
Faculty Plan – Group Insurance Overview
   Benefits are effective with your date of employment.

   Short Term Disability program (Employer Insured)
        Provides 105 days fully paid

   Long Term Disability insured by Great West Life
        Provides pro-rated benefit to a maximum of $10,000 monthly, indexed
        LTD premium is Employee paid – LTD benefit is Non Taxable

   Basic Life Insurance (Sun Life) A.D.&D. (Chubb)
        Insurance benefit of three (3) times annual salary, rounded to the next
         highest $1,000 – to a maximum of $350,000
        University paid Premiums

   Optional Dependent Life and A.D.&D. available
        Employee paid Premiums
                                                                                   18
Faculty Plan – Additional Faculty Benefits
   Benefits are effective with your date of employment.

   Tuition Remission (taxable benefit)
        Full Time Faculty , their dependents and spouse eligible for free tuition.
        Sessional Instructors entitled to one tuition credit course per year in a year
         the Instructor teaches one (1) or more courses.
        Some limitations apply to this benefit. Contact Human Resources.

   St. Denis Centre – Fitness Facility (non taxable benefit)
        Full Time Faculty, their dependents and spouse entitled to basic
         membership.
        Sessional Instructors are provided with membership during the semesters
         in which they are teaching.
        Some limitations apply to this benefit. Does not include access to the
         Forge. Contact the St. Denis Centre for more information.



                                                                                    19
Office of Pensions, Benefits and HR Systems
Department of Human Resources – 2nd floor Chrysler Hall Tower

   Rita LaCivita – Executive Director of Human Resources - ext. 5007

   Cheryl Paglione – Associate Director of Human Resources - Pensions,
                      Benefits and HR Systems - ext. 2014

   Tom Puskas – Manager of Pensions, Benefits and HR Systems – ext. 2048

   Melissa Simas – Pension, Benefits and Records Administrator – Faculty,
                    Librarians, Ancillary Academic Staff – ext. 2090

Visit our website at www.uwindsor.ca/hr
                 Faculty Association
                 Pension & Benefits

                                                                             20
Faculty Orientation – Pensions and Benefits



Thank You!



Questions?


                                              21

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:10/15/2012
language:English
pages:21