MYTHS ABOUT OUR PENSION PLAN (8)

cupe1975Pensions

MYTH “The defined benefit pension that you have earned up to the point of any changes to the plan CANNOT be changed and is payable monthly for your lifetime” “Current pensioners will not be affected by any future changes” FACT These statements are currently true, but there are no guarantees that they will always be true. The Saskatchewan Pension Benefits … Read More

MYTHS ABOUT OUR PENSION PLAN (7)

cupe1975Pensions

MYTH  “The DB plan type that has been on the decline over the past number of years across the country” FACT While fewer private sector employers are offering DB pension plans, this plan type remains standard in the public sector. 91% of public sector workers who have a pension plan have a DB plan. DB plans remain standard in the … Read More

MYTHS ABOUT OUR PENSION PLAN (6)

cupe1975Pensions

MYTH The University is offering a “competitive pension plan”                                                                                                                    FACT The University has offered two different pension plans (Defined Contribution or Target Benefit) that share the same basic legal structure. In both proposed plans: 1) the University bears no risks and 2) plan members bear all of the risks. This is a complete change from your current DB plan, which … Read More

MYTHS ABOUT OUR PENSION PLAN (5)

cupe1975Pensions

MYTH “This pension plan is in a deficit and running an annual shortfall”  FACT After nine years of being in deficit, the interim 2017 valuation revealed that the plan is now back in surplus (103% funded, $12 million surplus) on the actuary’s best estimate basis. If a 5% funding buffer (or “margin”) is added to artificially inflate the plan’s liabilities, … Read More

MYTHS ABOUT OUR PENSION PLAN (4)

cupe1975Pensions

MYTH “These significant additional contributions are expected to continue into the future under the pension’s current structure” FACT This is not true. The most recent actuarial report shows that University contributions have already come down significantly, with further reductions projected for the coming years. For example, in 2017, the employer required contribution to the plan was 16.14% of payroll. In … Read More

MYTHS ABOUT OUR PENSION PLAN (3)

cupe1975Pensions

MYTH “The university did not take a contribution holiday.”  FACT The University took 17 years of partial contribution holidays between 1993-2009. The University is required to file papers with pension regulators each year, which clearly show these holidays. The Union has copies of all of these records. During this period, the employer diverted funds from the pension fund surplus to … Read More

MYTHS ABOUT OUR PENSION PLAN (2)

cupe1975Pensions

MYTH Public sector workers like University workers have “gold plated pensions” FACT The plan pays a modest average annual pension of $18,100. The plan also does not provide guaranteed cost-of-living increases for retirees (also known as “indexation”). Indexation is provided on an ad hoc basis and has generally been delivered out of surplus, when surplus exists. As the cost of … Read More

MYTHS ABOUT OUR PENSION PLAN (1)

cupe1975Pensions

MYTHS ABOUT THE PLAN  MYTH: The pension plan is not sustainable FACT Your pension plan is sustainable. Your plan is not broken, nor is it in crisis. Language like this is used by employers to convince you that we need to abandon the pension to save the pension. This is untrue ideological language that the Employer is using to advance … Read More