University of Waterloo Board of Governors Pension

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University of WaterlooBoard of
GovernorsPension Benefits Committee

• Benefits Comparison
• November 2005

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2005 Pension Benefits Committee Membership

• Walter McCutchan
• Alan Macnaughton
• David McNee
• Don Strickler
• Jock MacKay
• David Dietrich, Resource
• Trenny Canning, Secretary
• Allan Shapira, Consulting Actuary

• Catharine Scott, Chair
• Gerry Blom
• Sandra Burt
• David Carter
• Amit Chakma
• Dennis Huber
• Cathie Irwin
• Tim Jackson
• Bruce Mitchell

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Understanding the Overall UW Benefits Picture
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Statutory Costs Canada Pension PlanWorkplace
Safety InsuranceEmployment Insurance Employer
Health Tax
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Benefits Administered by the CommitteePension
PlansLife InsuranceDental PlanExtended
Health Care PlanSick Leave and Long-Term
Disability
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Benefits are provided by the University The
costs (claims plus administration fees) of
extended health, dental and basic life insurance
benefits are charged to the University.
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Total Benefit Costs in Relationto Operating
Salary Budget
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2004/05 Costs to the University

• UW Pensions
• (University contributions only)
• Life Insurance
• Dental
• Extended Health Care
• Statutory Costs

• 13.6 million
• 1.0 million
• 2.4 million
• 5.6 million
• 17.6 million

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Guiding Principles

• One pension and benefits plan for all members of
  the UW community without reference to the type of
  work performed or the employee group to which one
  belongs.
• The current level of benefits should be
  maintained.
• Employees should be covered for catastrophic
  events.
• Benefits should not be designated for the
  employee alone, but should provide family
  coverage where relevant.
• Cost implications to both the University and its
  employees should be considered.

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• Consulting Actuary to the UW Pension Benefits
  Committee
• Allan Shapira
• Hewitt Associates

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• Benefit Index
• University of Waterloo

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The Challenge in MeasuringBenefit Programs

• Hundreds of different provisions
• Wide variation in employee/employer cost-sharing
  arrangements
• Different demographics
• Perceived value often based on anecdotal
  discussions
• Range of funding and administration arrangements

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Benefit Index?Background

• Developed in 1970 and continuously refined to
  reflect changing nature of benefit programs
• Most widely used method for comparing benefit
  design in the world
• Actuarial model

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Canadian OrganizationsUsing Benefit Index

• Bell Canada
• Bank of Montreal
• British Columbia Government
• Bayer
• Calgary Board of Education
• DaimlerChrysler
• Eli Lilly
• General Motors
• Honeywell
• HP

• IBM
• Manulife
• Michelin
• NCR
• Petrochemical Group of Companies
• Price Waterhouse Coopers
• Scotiabank
• Siemens
• University G-10

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Benefit IndexOverview
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Comparator Universities

• Montreal
• Ottawa
• Toronto
• Western Ontario
• Wilfrid Laurier
• Windsor

• Alberta
• British Columbia
• Guelph
• Laval
• McGill
• McMaster

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Benefit Programsfor Comparator Universities

• While the University of Waterloo has one benefit
  program covering all employee groups, benefit
  programs for most other Universities differ to
  some extent by employee group.
• Because the University of Waterloo has one plan
  for all, the study was based on comparison with
  faculty plans under the assumption that faculty
  benefits are generally better than staff benefits
  when the plans are split.

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Distribution of Employer-Paid Value
University of Waterloo
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All Benefits
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Pension Benefits
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Preretirement Death Benefits

• Group Life Insurance
• Survivors Income

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Disability Benefits

• Sick Leave
• Long-Term Disability

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Preretirement Health Care Benefits

• Medical
• Dental
• Vision/Hearing
• Spending Accounts

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Preretirement Group Benefits

• Group Life Insurance
• Short-Term Disability
• Long-Term Disability
• Medical
• Dental
• Vision/Hearing
• Spending Accounts

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Postretirement Health Care Benefits

• Medical (including out-of-country)
• Dental
• Vision/Hearing
• Spending Accounts

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All Health Care Benefits

• Preretirement Health Care
• Postretirement Health Care

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All Postretirement Benefits

• Pension Benefits
• Postretirement Death Benefits
• Postretirement Health Care Benefits

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All Benefits
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• Questions?

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• Comments or questions may be directed to the
  Committee
• through its Secretary
• tcanning_at_uwaterloo.ca