Human Resources Services
Room 207 Chrysler Hall Tower
( 519) 253-3000, ext. 2047
Fax (519) 971-3688
University of Windsor
Human Resources Services
401 Sunset Avenue
Section 3 - Contributions
3.01 Required Contributions By Members
Each Member shall be required to contribute to the Plan, by payroll deduction, as follows:
(1) For Service Prior To January 1, 1966
5% of his/her Earnings.
(2) For Service From January 1, 1966 To June 30, 1972
(a) 3.2% of that portion of his/her Earnings during each year which is at an annual rate that is subject to tax under the Canada Pension Plan; plus
(b) 5% of that portion of his/her Earnings during each year which is at an annual rate that is not subject to tax under the Canada Pension Plan.
(3) For Service On And After July 1, 1972
(a) 6% of that portion of his/her Earnings in each year up to the Year’s Basic Exemption; plus
(b) 4.2% of that portion of his/her Earnings in each year that is in excess of the Year’s Basic Exemption but only up to the Year’s Maximum Pensionable Earnings; plus
(c) 6% of that portion of his/her Earnings in each year in excess of the Year’s Maximum Pensionable Earnings,
provided that a Member’s contributions for any calendar year, under this Section 3.01(3), shall not exceed the maximum amount permitted under the Income Tax Act for that calendar year.
However, during periods of Total Disability or authorized leave of absence, the contribution requirements in respect of a Member shall be governed by the provisions of Sections 4 and 5 hereof.
3.02 Contributions By The University
(1) The University shall make such contributions to the Pension Fund as are required, based on the advice of the Actuary, to provide:
(a) the normal cost of the benefits currently accruing to Members under the Plan; and
(b) for the proper amortization of any unfunded liability or solvency deficiency;
both in accordance with the Pension Benefits Act, after taking into account the assets of the Pension Fund, the required contributions of the Members and all other relevant factors.
(2) Notwithstanding Section 3.02(1), effective July 1, 1987, the University shall contribute as a minimum each year an amount equal to the aggregate regular employee contributions for the year.
(3) The University’s contributions in respect of the normal cost of benefits shall be paid in monthly installments within 30 days following the month for which the contributions are payable. The University’s contributions in respect of several payments to amortize an unfunded actuarial liability or solvency deficiency shall be payable in equal monthly installments throughout the Plan Year.
(4) No contribution shall be made by the University to the Pension Fund, in accordance with Section 3.02, unless it is an eligible contribution as defined by the Income Tax Act.
3.03 Cost Sharing
(1) If at any time while the Plan continues in existence, the Actuary certifies that the assets of the Pension Fund exceed its liabilities (such excess referred to as “surplus assets”), such surplus assets shall be applied in the following order:
(a) first, the surplus assets shall be applied to reduce or eliminate any unfunded liabilities or experience deficiencies.
(b) second, the surplus assets shall be applied to reduce the University’s contributions in respect of the normal cost of benefits, provided that, where permitted under the Income Tax Act, the amount contributed by the University each Plan Year
pursuant to Section 3.02(1) shall not be less than the aggregate regular employee contributions for the year.
(2) If, after the application of surplus assets, if any, in accordance with Section 3.03(1), the University’s contributions exceed the aggregate regular employee contributions, the employee contributions under Section 3.01(3) shall be increased such that the Members and the University each contribute 50% of the total amount required to fund the Plan, provided that the aggregate contributions made by a Member for any calendar year shall not exceed the maximum amount permitted under the Income Tax Act for that calendar year.
3.04 Additional Voluntary Contributions
A Member is permitted in any year to make additional voluntary contributions for current service, subject to such maximum amount as may be allowed by the Income Tax Act as a deduction in computing taxable income, which contributions will be allocated to an individual account on behalf of the Member. Additional voluntary contributions may include a lump sum which the Member is entitled to receive or has received as a cash refund from a tax-exempt plan for pension purposes.
3.05 Reciprocal Transfer Agreements
The University may enter into special agreements under which a Member of the Plan may arrange to transfer amounts from a pension plan under which such Member accrued a benefit prior to joining the Plan for the purpose of transferring credited service under such former plan to the Member’s credit in this Plan, subject to certification of any past service pension adjustment under the Income Tax Act. The terms of such agreements may include requirements that such transferred amounts be administered on a ‘locked-in’ basis.
3.06 Purchase Of Past Service
Subject to certification of any past service pension adjustment under the Income Tax Act and to any other limits under the Income Tax Act applicable to past service, a Member may make additional contributions into the Plan to purchase service for a period of full-time employment with the University in which he/she did not participate in a pension plan sponsored by the University, in such amount as determined by the Actuary.