The work to create a new jointly sponsored pension plan (JSPP) for the university sector has reached an important milestone with an updated agreement reached last week.
The University of Toronto, University of Guelph and Queen’s University, together with their faculty associations, the United Steelworkers (USW) and representatives of the non-unionized employees at the three universities (through the Ontario Association of Non-Unionized University Employees) – are working diligently to develop a new pension plan, The University Pension Plan Ontario (UPP), that would cover employees at all three universities.
Once it is up and running, the UPP will be available to other Ontario universities as well. This new pension plan, which would be a jointly sponsored multi-employer pension plan (JSPP), is a type of defined benefit (DB) plan, and it represents a unique opportunity to reshape and sustain the retirement income system in the Ontario university sector.
We believe the adjustments agreed to last week will be welcomed by employees, while continuing to meet the long-term objective of sustainability of the UPP.
* Enhanced unreduced early retirement provisions for benefits earned under the UPP;
* Progressive plan design reflecting future CPP enhancements for benefits earned under the UPP;
* Changes to the proposed UPP contribution rates; and
* Agreement on the composition and attributes of the new Board of Trustees that will administer the UPP.
The full UPP update – Agreement on Unreduced Early Retirement, Governance, Contributions, and Other Plan Provisions is available here
The university will hold information sessions on the new plan next month; details on those sessions will be forthcoming.
Thank you for making the time to learn about this important initiative.
Donna M. Janiec, CPA, CA
Vice-Principal, Finance and Administration