The University of Waterloo Pension Plan

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The University of Waterloo Pension Plan
Stacey Parsons Pensions Co-ordinator The
University of Waterloo

• Wanda Speek
• Pensions Advisor
• The University of Waterloo

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Goals

• Inform all UW employees about retirement
  planning.
• Inform all UW employees about the UW Pension
  Plan.
• Inform all UW employees about the services
  available through the staff in Human Resources.

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Sources of Income in Retirement
Personal Resources
Government Benefits
Employer Pension
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Government Benefits

• Canada Pension Plan (CPP)
• A contributory, earnings-related social insurance
  program.
• In 2008, the contribution rate is 4.95 of
  earnings in excess of the basic exemption of
  3,500 and up to Y.M.P.E. (44,900).
• 2008 benefit maximum of 884.58/month.
• Old Age Security (OAS)
• A non-contributory, earnings-related social
  insurance program.
• Funded from general taxation fund.
• 2008 benefit maximum of 502.31/month.

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Personal Resources

• Registered Retirement Savings Plans (RRSPs)
• An account that allows you to save for retirement
  while lowering your income taxes now.
• Personal Savings Accounts
• Personal Investments
• Personal Assets

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Employer Pensions

• Previous, current and future employment.
• Many different designs
• Group RRSP
• Vs.
• Defined Contribution
• Vs.
• Defined Benefit

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University of Waterloo Pension Plan

• To provide income in retirement related to income
  earned near retirement.
• To protect the purchasing power of retirement
  income.
• Defined Benefit Pension Plan.

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Eligibility

• Regular full-time and regular part-time faculty
  and staff members must join the plan on the
  January 1st coinciding with or following their
  35th birthday, but may join on appointment.
• Other employees are eligible based on a set
  criteria.

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Contributions

• 5.05 of base earnings up to Yearly Maximum
  Pensionable Earnings (2008 Y.M.P.E. is 44,900).
• 7.85 of base earnings exceeding Y.M.P.E. and up
  to 2 times the Y.M.P.E.
• 9.2 of base earning exceeding 2 times the
  Y.M.P.E.
• Base earnings do not include earnings for
  overtime, stipends, shift premiums, etc.
• Currently the University contributes 157 of
  member contributions.

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UW Pension Benefit

• Defined Benefit Pension Formula
• (1.4 x final avg earnings up to the YMPE avg)
• (2.0 x final avg earnings above YMPE avg)
• X
• years and months of credited service

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UW Pension Benefit contd

• Defined Benefit Pension Formula
• (1.4 x final avg earnings up to the YMPE avg)
• (2.0 x final avg earnings above YMPE avg)
• X
• years and months of credited service

Final Avg Earnings (FAE) average of the best
continuous 36 months in last 10 years prior to
retirement. YMPE avg (CPP avg) average of the
last 5 years YMPE. Credited Service years and
months of contributing to the UW Pension Plan.
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UW Pension Benefit continued

• UW Pension Benefit formula provides a pension
  payable for life, guaranteed for 10 years.
• Other forms of pension are discussed at
  retirement, including survivor options, if you
  have a spouse.

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UW Pension Fund

• All employee and employer contributions go into
  the Pension Fund approximately 936,000,000 as
  of December 31, 2007.
• Invested based on policies and procedures created
  by the Pension and Benefits Committee.
• Valued each year by our Actuary to see how much
  UW needs to contribute to cover all liabilities.
• Interest rate in 2007 was 8.48, 2006 was 13.25.

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Your Personal Pension StatementDecember 31, 2007

• Each year we send out a personal statement to
  keep you updated about your pension.

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myPENSIONinfo

• Pension self service online - live June 2008
• See all your pension data
• Project your pension at different dates
• View the last 3 years of Pension Statements
• Other functions for those who are age 55

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myPENSIONinfo
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Where to Get More Information

• Government Benefits
• www.hrsdc.gc.ca/en/oas-cpp
• Human Resources
• www.hr.uwaterloo.ca
• Your own Financial Advisors

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• Stacey Parsons
• Pensions Co-ordinator
• sjparson_at_uwaterloo.ca
• Extension 32046
• Wanda Speek
• Pension Advisor
• wspeek_at_uwaterloo.ca
• Extension 33573
• Lesley Nevills
• Pension Information Analyst
• lnevills_at_uwaterloo.ca
• Extension 32785