Human Resources Services
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University of Windsor
Human Resources Services
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Section 7 - Amount Of Retirement Income - Amount Of Retirement Income- Amount Of Retirement Income
7.01 Normal Or Postponed Retirement Income
Each Member who retires on or after his/her Normal Retirement Date, pursuant to Section 6.02 or 6.03 hereof, shall receive an annual retirement income, commencing on his/her retirement date and payable in equal monthly installments, in an amount equal to the sum of the following:
(1) Retirement Income For Service Prior To The Effective Date
If the Member was eligible for and joined the Plan as of the Effective Date, an annual amount of retirement income equal to 1% of the Employee’s annual rate of Earnings as of March 31, 1955 multiplied by the number of years (with months counted as a fraction of a year) of his/her Pensionable Service prior to September 1, 1955.
(2) Retirement Income For Service After The Effective Date
For service on and after the Effective Date, an annual retirement income equal to:
(a) 2% of that portion of the Member’s Earnings in each year of Pensionable Service on and after September 1, 1955 on which he/she has made the required contributions pursuant to Sections 3.01(1), 3.01(2)(b), 3.01(3)(a) and 3.01(3)(c); plus
(b) 1.28% of that portion of the Member’s Earnings in each such year on which he/she has made the required contribution pursuant to Section 3.01(2)(a) and Section 3.01(3)(b).
(3) Supplementary Pension
An annual supplementary retirement income of such amount as is required, when added to the annual amounts provided by Sections 7.01(1) and (2) above, to produce a total annual retirement benefit determined by multiplying the sum of (a) and (b) by (c), as follows:
(a) 1.40% of that portion of the Member’s Best Average Earnings which is not in excess of the Average Canada Pension Plan Base,
(b) 2.00% of that portion of the Member’s Best Average Earnings which is in excess of the Average Canada Pension Plan Base,
(c) the Member’s Pensionable Service (with completed months counted as a fraction of a year).
7.02 Post Retirement Indexing For Active, Deferred Vested
And Retired Members In The Plan On Or After July 1, 1987
(1) The retirement income of a Member or former Member of the Plan 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.
(2) 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 other retirees but multiplied by a ratio, numerator of which is equal to the complete months since pension commencement, and the denominator is 12 months.
(3) Notwithstanding Sections 7.02(1) and (2), in the case of a Member whose pension at his/her pension commencement date is restricted to the maximum pension by virtue of Section 7.08, the increase described in Section 7.02(1) shall not apply until the July 1 of the calendar year following the calendar year in which the pension commenced.
7.03 Increase For Pensioners
The retirement income of a Member who retired on or prior to June 30, 1986 shall be increased effective July 1, 1987. The percentage increase of a Member’s retirement income shall be 50% of the rate that the Consumer Price Index for the Plan Year ending June 30, 1987 bears to the Consumer Price Index for the Plan Year of pension commencement.
7.04 Early Or Disability Retirement Income
A Member who retires prior to his/her Normal Retirement Date, pursuant to Sections 6.04 or 6.05 hereof, shall be entitled to receive an annual retirement income, commencing on his/her early retirement date or disability retirement date, and payable in equal monthly installments, in an amount which is equal to (1) or (2) below; as appropriate:
(1) the annual retirement income accrued to his/her credit under Section 7.01 above, at his/her actual retirement date, provided he/she is eligible for a disability retirement pension under Section 6.05; or
(2) the amount of retirement income payable to a Member eligible for early retirement under Section 6.04 shall be equal to the annual retirement income accrued to his/her credit under Section 7.01 above, at his/her actual retirement date but reduced by 1/3 of 1% for each month between the ages of 60 and 65 inclusive, and by 1/2 of 1% for each additional month between the ages of 55 and 59 inclusive, by which the date of commencement of such pension precedes his/her Normal Retirement Date, provided that the Member’s pension is at least the Actuarial Equivalent of a deferred pension, commencing on his/her Normal Retirement Date, calculated according to the formula in Section 7.01 based on his/her Pensionable Service to the date he/she leaves active employment with the University. It is further provided that the reduction in early retirement pension shall not be less than the minimum reduction specified in the Income Tax Act.
7.05 Pension From Additional Voluntary Contributions
In addition to the benefits provided under Sections 7.01, 7.02, or 7.04 above, a Member who has made additional voluntary contributions pursuant to Section 3.04 hereof has the option at retirement of receiving either:
(1) a lump sum refund of his/her additional voluntary contributions with Credited Interest to his/her actual retirement date; or
(2) a pension that can be provided by the lump sum in (1) above using the Actuarial Basis in effect at the time of conversion.
7.06 Minimum Benefit With Respect To Required Contributions
(1) Contributions Made Before January 1, 1987
Upon the earlier of the retirement, death or termination of employment of a Member, the Commuted Value of the Member’s pension for Pensionable Service prior to January 1, 1987 under Section 7.01 shall be at least equal to the Member’s required contributions made to the Plan prior to January 1, 1987 plus Credited Interest to the date of the determination.
(2) Contributions Made On And After January 1, 1987
If, upon the earlier of the retirement, death or termination of employment of a Member,
(a) the Member’s required contributions made on and after January 1, 1987, plus Credited Interest to the date of the determination,
(b) 50% of the Commuted Value of a Member’s pension comprised of (i) and (ii) as follows:
(i) the pension accrued or granted to him/her under Section 7.01 for Pensionable Service on and after January 1, 1987, together with
(ii) other benefits accrued or granted to him/her on and after January 1, 1987,
the Member, or the Member’s Spouse or Beneficiary, as the case may be, will be entitled to a refund of the excess.
7.07 Small Benefit Commutation
If the annual pension payable at the Member’s Normal Retirement Date is not more than 2% of the Year’s Maximum Pensionable Earnings in the year of the Member’s retirement, or such other amount as may be prescribed under the Pension Benefits Act, the University shall pay the Member a lump sum payment equal to the Commuted Value of his/her pension or deferred pension in full discharge of all obligations under the Plan.
7.08 Maximum Pension
Notwithstanding any other provision of this Plan to the contrary, the annual lifetime pension payable to a Member under this Plan at pension commencement, including a pension payable under any other registered pension plan sponsored by the University and any pension payable to a Member’s Spouse or former Spouse pursuant to Section 16.03, in the form of pension paid to the Member, shall not exceed the years of the Member’s Pensionable Service multiplied by the lesser of:
(1) $1,722.22 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;
(2) 2% of the average of the Member’s best 3 consecutive years of compensation (as defined under Section 147.1(1) of the Income Tax Act) from the University;
reduced, if the pension commencement date precedes the earliest of the days on which:
(3) the Member would attain age 60;
(4) the Member’s age plus Pensionable Service would have equalled 80; and
(5) the Member would have completed 30 years of Pensionable Service,
by ¼ of 1% for each month by which the pension commencement date precedes that day, provided that no reduction shall apply in the case of a pension payable as a result of a Total and Permanent Disability.
This Section 7.08(3) shall not apply to additional benefits payable as a result of an Actuarial Equivalent increase in respect of postponed retirement, or that portion, if any, of the pension derived from a Member’s additional voluntary contributions.
For purposes of this Section 7.08, for service before January 1, 1992 a Member’s Pensionable Service shall not exceed 35 years.
In years after the year of pension commencement, the maximum pension shall be indexed in accordance with Section 7.02.
7.09 Pension Adjustment
In no event shall the contributions made under Section 3.04 and the benefit accrued under Section 7.01 result in a pension adjustment (as defined under the Income Tax Act) in excess of the limits prescribed by the Income Tax Act.