UPEI has a single pension plan for faculty and staff groups. Around April 30, 2007 the unions formed a coalition to negotiate enhancements to the UPEI Pension Plan, which they presented at the respective negotiation tables. Deliberations were moved to a separate, joint table.

Discussions ensued and resolution was reached during the Summer of 2010. The items agreed upon were compiled into a Memorandum of Agreement, which has been signed by all the Unions and the Faculty Association, and by the University Administration. The Board of Governors approved the amendments to the Pension Plan at its November 18, 2010 meeting.

This Agreement was the result of collaboration of all the union groups and the Administration on a number of difficult and complex issues in an environment when pension plans across the country face serious funding and sustainability challenges. The changes will apply to all current UPEI Pension Plan employees as of July 1, 2010, and the provisions will be retroactive to that date.

Included are:

• Clarification of definitions
• Elimination of the option to join the UPEI Pension Plan prior to age 30 and replacing it with mandatory participation for all who meet the criteria for membership.
• Improvement of the calculation for past service so as to provide a full 2.00% for service after December 31, 1989 and up to December 31, 1998. This will be paid for fully by the plan members over the next 15 years.
• An integration ratio will be set for each employee in the Pension Plan to cover the pension benefit calculation for the period beginning January 1, 1999 up to and including July 4, 2010.

Effective July 5, 2010:

• a separation of the method of contribution from the method of determining benefits
• the contribution rate for members will become 5.4% of pay on CPP earnings and 7.2% of pay on non-CPP earnings (inclusive of the 15 year amortized amount)
• the service benefit calculation is improved from 1.4% to 1.5% per year of service.

These changes are subject to approval by Canada Revenue Agency. The new rates will be in place on the January 7th pay. Retroactive pay deductions to cover the period July 1, 2010 to January 21, 2011 are expected to begin on the January 21, 2011 pay. These deductions will appear on your pay stubs as “Retro Pension 2010”.

Pension Plan members will be receiving more detail over the next few weeks. We will be inviting our pension consultant, Eckler Partners, to present the specifics and implications for pension plan members at a general presentation as well as at our annual Retirement Planning Workshop. Dates and locations will be announced shortly.

For further information, please contact Jennifer Prinz, Manager, Employee Services at 566-0517 or email jprinz@upei.ca.