Pension Update from Doug Badger
Pension Update: June, 2021 for UGRA Annual General Meeting
Conversion of Guelph’s single employer pension plans to the new University Pension Plan – Ontario is nearly here. Effective July 1, the UPP will assume investment responsibility for Guelph’s pension assets, which totaled $1,750 million as of March 31.
As previously communicated to you, the final pension payment from Guelph’s plans will be June 30, and as the UPP plans to disburse monthly pensions on the first day of the month, you will receive July’s payment on July 1. As July 1 is Canada Day, I’m not sure if July’s payment will get to you on June 30 or July 2.
The UPP will continue to post regular updates on its website, www.universitypension.ca.
A new website has been created for member consultations and the link is www.myupp.ca. UPP management is planning fall member information sessions and ‘investment listening sessions’ at all three founding Universities.
Each University has entered into an ‘agency agreement’ with the UPP to individually continue pension member services for both current employees and retirees. Your pension payments and any pension service will continue to be coordinated by Guelph’s Human Resources department. It is expected that this arrangement will continue for some time.
A special actuarial valuation will be prepared as of June 30 as well as audited financial statements for the plan assets. These will determine the ‘going-concern’ surplus or deficit as at the conversion date. The University is fully responsible for ‘pre-inception’ service losses for the first ten years after July 1.
The University’s Pension Committee will no longer be required after July 1 and will wrap up after two final meetings this fall to review the UPP transition and the final conversion report. It has been a privilege and my pleasure to represent Guelph’s retirees on the Committee for the past six years.
P.S. Although headline CPI numbers are going up (3.6% y/y for May), my unofficial calculation for Guelph’s arcane indexation formula indicates that there will be no adjustment to our pensions this year. Guelph’s indexation calculation is based on the fiscal year from May to April. Human Resources will presumably provide an official notice on their Retiree web-page.
D. Doug Badger, CPA CGA (retired)