How do these increased contribution rates compare to other public sector plans?

Increasing employee contributions appears to be the option of choice for other university plans facing similar significant funding shortfalls:

  • Guelph’s CUPE 1334 local recently negotiated changes that will see contributions increase to 7.6%, up to the Year’s Maximum Pensionable Earnings (YMPE, currently $48,300), and 9.9% on salary in excess of the YMPE (Queen’s has recommended its target be 7% up to YMPE, 9% in excess);
  • Trent’s faculty plan has increased contributions to 7% permanently and to 9% for a three-year period (2010-13);
  • McMaster’s plan has increased to 6.5%, up to YMPE, and 8.75% above for all employee groups.

To compare with another public sector plan outside of the university sector:

  • OMERS has announced increased member contribution rates for 2012, which will range from a low of 8.3% up to YMPE to as high as 13.9% above YMPE.
  • The Ontario teacher’s plan rates are now 10.2% up to YMPE and 12% above — the plan, which is a jointly sponsored pension plan, requires the funding responsibility to be shared equally between the employer and pension plan members and, as such, contribution rates are set annually by the plan actuary.

Currently at Queen’s, the employer’s total contribution rate (employee money purchase account contributions, minimum guarantee current service cost, and additional special payments) is more than double the employee’s.

 

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