Human Resources Services
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E-mail:lea@uwindsor.ca

Mailing Address:
University of Windsor
Human Resources Services
401 Sunset Avenue
Windsor, Ontario
N9B 3P4
Retirement Plan - Employees
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Appendix A
Voluntary Early Retirement Program
Section 1 - Definitions

(1) “Eligibility Age” means the age of the Member in whole numbers or fractions thereof at the Member’s retirement date.

(2) “Full-Time Service” means the sum of the following:

(a) a year or fraction of a year when the Member is employed by the University on a full-time basis; plus

(b) a year or fraction of a year while the Member is on authorized sick leave, disability leave, or on a leave of absence authorized by the University (with pay only) during which the Member continues to make required contributions to the Plan.

(3) “Rule Of 75/55” means the eligibility requirements set out in Section 2 of this Appendix A for a pension pursuant to Section 3(1) of this Appendix A.

(4) “VER Program” means the voluntary early retirement program established herein and applicable to Members who satisfy the Rule of 75/55.


Section 2 - Eligibility (Rule Of 75/55)


For the period between July 1, 1999 and June 30, 2002 inclusive, a Member whose Eligibility Age is at least 55 and whose Eligibility Age plus years of Full-Time Service equal 75 or more is eligible to retire and receive a pension pursuant to Section 3 of this Appendix A, in lieu of any other benefits described in the Plan.

Section 3 - VER Benefits


(1) VER Pension

A Member who satisfies the Rule of 75/55 and who retires under the VER Program shall be entitled to receive an immediate pension in an amount determined as follows:

An amount equal to the product of (a) and (b) below where:

(a) is the Member’s Pensionable Service;

and

(b) is the sum of:

(i) 1.45% of the Member’s Best Average Earnings not in excess of the Average Canada Pension Plan Base; and

(ii) 2.00% of the Member’s Best Average Earnings in excess of the Average Canada Pension Plan Base.

Notwithstanding the foregoing, the pensions provided under subsections (A) and (B) above shall be reduced by 1/4 of 1% for each month, if any, by which the pension commencement date precedes the earliest of the day on which:

(i) the Member would attain age 60;

(ii) the Member’s age plus Pensionable Service would have equalled 80; and

(iii) the Member would have completed 30 years of Pensionable Service.

provided that no reduction applies in the case of a pension payable as a result of Total and Permanent Disability.

The Member’s pension calculated above shall be increased annually on each July 1 by a percentage. Such percentage increase shall be equal to one-half of the excess of the Average Fund Rate of Return over the Valuation Interest Rate but in no case greater than 50% of CPI for that year. If the Average Fund Rate of Return is less than or equal to the Valuation Interest Rate, the pension income will remain unchanged.

A Member who has been in receipt of pension income for less than a year on July 1 shall receive an increase which is equal to the regular increase offered to other retirees but multiplied by a ratio, where the numerator of the ratio is equal to the complete months since pension commencement, and the denominator is 12 months.


Notwithstanding the above, in the case of a Member whose pension at his or her pension commencement date is restricted to the maximum pension described in Section 4(1) of this Appendix A, the increase in the pension described above shall not apply until the July 1 of the calendar year following the calendar year in which the pension commenced.

(2) VER Bridge Benefit

A Member who satisfies the Rule of 75/55 and who retires under the VER Program shall be entitled to receive a bridge benefit payable from the Member’s pension commencement date until the Member’s attainment of age 65. The bridge benefit shall be an amount equal to 0.55% of the lesser of the Member’s Best Average Earnings and the Average Canada Pension Plan Base, multiplied by the sum of the Member’s Pensionable Service plus one-half of the number of years (with full months counted as a fraction of a year) between the pension commencement date and the Member’s Normal Retirement Date.

In the event of the death of a Member between his/her pension and commencement date and his/her Normal Retirement Date, the bridge benefit shall be reduced to 60% and be paid to the Member’s Spouse or dependent children (as defined under Regulation 8500(1) to the Income Tax Act) until the date the Member would have attained age 65 or, if earlier, the end of the dependent child’s eligible survivor benefit period (as defined under Regulation 8500(1) to the Income Tax Act), if applicable.


Section 4 - Maximum Benefit

(1) Maximum Pension

Notwithstanding any other provision of this Plan, the annual pension provided at retirement, under Section 3(1) of this Appendix A in respect of any Member, when added to the annual retirement pension provided by any other registered pension plan sponsored by the University and any other pension payable to a Member’s Spouse or former Spouse pursuant to Section 16.03, in the form of pension paid under the Plan, shall not exceed the amount described below:

(A) Maximum For Pensionable Service Prior To January 1, 1990

The annual pension provided under Section 3(1)(A) of Appendix A in respect of Pensionable Service prior to January 1, 1990 shall not exceed the years of the Member’s Pensionable Service prior to January 1, 1990, to a maximum of 35 years, multiplied by the lesser of

(i) $1,772.22 in respect of Pensionable Service except that the limit in respect of any additional calendar year of Pensionable Service before June 8, 1990 which is purchased after that date pursuant to Section 3.06 is $1,150 for each such year, or such greater amount as may be permitted under the Income Tax Act; and

(ii) 2% of the average of the Member’s best three consecutive years of compensation (as defined under Section 147.1(1) of the Income Tax Act) from the University,

provided that the above prohibitions shall not apply to annual pensions of $300 or less per year of Pensionable Service prior to January 1, 1990.

(B) Maximum For Pensionable Service After December 31, 1989

The annual pension provided under Section 3(1)(B) of this Appendix A in respect of Pensionable Service after December 31, 1989, shall not exceed the years of the Member’s Pensionable Service after December 31, 1989 multiplied by the lesser of

(i) $1,722.22 or such greater amount as may be prescribed for
this purpose by the Income Tax Act; and

(ii) 2% of the average of the Member’s best three consecutive years of compensation (as defined under Section 147.1(1) of the Income Tax Act) from the University.

(C) The maximum annual pension determined under Section 3(1)(A) and (B) above shall be reduced, if the pension commencement date precedes the earliest of the day on which:

(i) the Member would attain age 60;

(ii) the Member’s age plus Pensionable Service would have equalled 80; and

(iii) the Member would have completed 30 years of Pensionable Service,

by 1/4 of 1% for each month by which the pension commencement date precedes that day, provided that no reduction in the case of a pension payable as a result of Total and Permanent Disability.

(2) Post-1991 Service Combined Bridge And Maximum Pension Benefit

The portion of bridge benefits payable under Section 3(2) in respect of Pensionable Service after December 31, 1991, in combination with the portion of the pension payable under Section 3(1) of this Appendix A in respect of Pensionable Service after December 31, 1991, shall not exceed (A) plus (B) as follows:

(A) $1,722.22 or such greater amount as may be permitted under the Income Tax Act, multiplied by the Member’s Pensionable Service after December 31, 1991, plus

(B) 1/35th of 25% of the average of the Year’s Maximum Pensionable Earnings for the year of retirement and each of the two immediately preceding years, multiplied by the Member’s Pensionable Service after December 31, 1991, not exceeding 35 years.

(3) Maximum Bridge Benefit

The annual bridge benefit payable under Section 3(2) shall not exceed the sum of the maximum benefits payable to the Member under the
Canada Pension Plan and the maximum Old Age Security benefit payable to individuals aged 65 as at the Member’s pension commencement date, reduced proportionately in the case of a Member who has completed less than 10 years of Pensionable Service as at that date. The maximum bridge benefit so determined shall be further reduced by 1/4 of 1% for each month by which the Member’s pension commencement date precedes his/her attainment of age 60.

Section 5 - Application For Retirement Under VER Program

Applications for retirement under the VER Program are null and void unless made in writing in the form and manner determined by the University in accordance with the VER Agreement.

Section 6 - VER Deferral

With respect to a Member who applies to retire under the VER Program, the University shall retain the right to defer the Member’s participation in the VER Program for up to 6 months.

Section 7 - Administration

The University shall administer the VER Program in accordance with the Pension Benefits Act, the Income Tax Act and the VER Agreement dated June 21, 1999 between the University, the Unions and Non-union Administration Staff.



Copyright 1999, University of Windsor
Although care has been taken in preparing the information in this site the University of Windsor cannot guarantee its accuracy.