Pension and Benefits Report
QPP Returns
The current pension year of the Queen’s Pension Plan (QPP) has been somewhat rocky (with a very sharp downturn in the markets in December), and, as a result, the QPP posted an investment return of -2.53% for the first five months of the pension year (Sep 1, 2018—Jan 31, 2019). As of writing, 2019 has seen some upturn in the markets, and we can hope that future months bring better news, but there are no guarantees. You can find details of monthly returns in the “Pension News” box at http://www.queensu.ca/humanresources/news/monthly-pension-update-20190226 .
UPP Update
On February 15, the following “Important Update” was posted on the website of the University Pension Plan Ontario (UPP) at http://www.universitypension.ca/ :
“Following their ratification processes, the University of Toronto Faculty Association (UTFA), University of Guelph Faculty Association (UGFA), Queen's University Faculty Association (QUFA) and United Steelworkers Locals 1998, 2010 and 4120 have ratified agreements under which their association/union will consent to the conversion of their existing pension plans to the proposed University Pension Plan (UPP). This is a very significant milestone toward the creation of the UPP. In the weeks and months ahead, other union groups will be undergoing similar ratification processes, and there will then be a formal consent process with active, former and retired members and other plan beneficiaries in the Spring of 2019. Once all legislative compliance activities and disclosures have been completed, the new UPP is anticipated to be fully implemented and operational by July 1, 2021.”
Queen’s reports that more than 96% of votes cast by QUFA members who are QPP members were in support of a renewed collective agreement and consent to the UPP. USW Local 2010 members cast 96.4% of votes in favour.
UPP and Queen’s Pensioners – What You Need to Know
1. All material presented on the UPP has emphasized that folding the QPP assets into those of the UPP will not result in material change for current pensioners: current pensioners’ future pension amounts will continue to be determined by the same multi-year averaging process used by the QPP, except that UPP investment returns will gradually replace QPP returns once the UPP comes into operation.
For more details, you may wish to look at the slides shown at the QPP Annual Meeting in December 2018: . http://www.universitypension.ca/Content/pdfs/presentations/(1030AM)181214-Queens-University-UPP-Deck%20-%204x3%20Retirees%20AGM%20-version4.pdf.
2. Explanatory materials about the proposed conversion to the UPP will be mailed to all non-employee members of the QPP (a group which includes pensioners) by the end of March, 2019. By law, QPP pensioners need do nothing if they consent to the change; those who object must mail back the objection form by the deadline specified in that material.
3. RAQ Council will provide you with additional information on this issue once the non-employee packages have been distributed.
At the committee’s Fall meeting with senior administrators, we asked the new Associate Vice-Principal (Human Resources), Mr. Steven Millan, to ask insurers that will be responding to an upcoming University Request for Proposal on benefits to provide rates for additional optional travel and health benefits that we do not currently receive. He agreed that it was a reasonable request.
As always, the Pension & Benefits Committee welcomes questions, comments, and information about problems from members of RAQ, which we will bring to our meetings with senior administrators of Queen’s.
RAQ P & B Committee: George Brandie (Chair), Chris Chapler,
Bill Forbes, Bruce Hutchinson, Sue Miklas & Joyce Zakos