Pension Plan Surplus - Questions & Answers

QUESTION:

Why have Election forms not been sent out in connection with the $3 million surplus distribution if this is a done deal and is not dependent on the acceptance of the University's proposal concerning the Defined Contribution arrangement and other remaining substantive issues.

ANSWER:

The distribution of the $3 million surplus funds to members is not dependent on the acceptance of the University's proposal and will go forward even if the Defined Contribution arrangement and the rest of the University's proposal is not accepted. However, the three choices available in relation to the $3 million surplus will be altered if a DC arrangement is implemented. In the absence of a DC arrangement, an active plan member may choose to have his/her share of the $3 million surplus paid in one of the following three forms:

a) cash refund;
b) combination of a cash refund and benefit improvement; or
c) benefit improvement. If a DC arrangement is implemented, any plan member who chooses to transfer to the DC arrangement, will be able to transfer his/her share of the $3 million surplus into the DC arrangement or opt for a cash refund, however, options b) and c) will no longer apply. As a result, it makes sense to wait until we know whether a DC arrangement will be implemented so that plan members may be presented with all available options at one time.

Human Resources