1. You will not lose your pension. The defined benefit pension that you have earned up to the point of any changes to the plan CANNOT be changed and is payable monthly for your lifetime. You will always have a DB portion of your pension. Your monthly payment from the DB part of your pension will also continue to grow because it will be based on highest 48 consecutive months of earnings at the U of S. 

2. The university wants all employees to have a financially sound pension plan. The university has been exploring solutions both outside and inside of bargaining with CUPE 1975 for 10 years to make the Non Academic Pension Plan sustainable while still providing a competitive and valuable pension for you. We are considering a defined contribution provision to your pension plan as a possible avenue, which is the same as all of your co-worker’s pension plans at the U of S.

3. The university has always been open to discussing the pension plan with CUPE 1975. In August 2017 prior to the arbitrator’s ruling, the university tabled an alternative pension design proposal with CUPE 1975, which was rejected. The university has been exploring solutions both outside and inside of negotiations with CUPE 1975 for 10 years to make the Non Academic Pension Plan sustainable while still providing a competitive and valuable pension for you.

4. The University has always had the right to amend this pension plan. The arbitration decision did not give the university the right, it only confirmed the university’s existing right to reform the Non Academic Pension Plan. While the arbitration decision confirmed that the university has authority to reform the Non Academic Pension Plan, and the university has developed plans to do so, these plans and the required amendments have not yet been approved.

5. The university did not take a contribution holiday. The university has always made its matching contributions, using plan surplus ONLY to make improvements and secure your pension plan. When the plan was in a surplus, the university used the funds to:

  • establish reserves in the plan up the maximum amount allowed by the Canadian Revenue Agency
  • cover the service cost shortfalls in the plan each year
  • establish reserves for cost of living increases for those receiving pension 
  • retroactively increase the pension formula from 1.5% to 2.0% for all service to ensure all active members were at the same rate

All of these actions were reported to the provincial pension regulator as part of our annual reporting requirements. The university annually reports on all financial aspects of the plan with the provincial pension regulator, including use of surplus, and have always been in compliance. 

6. This pension plan is not in a surplus. Valuations for accounting purposes show a surplus, but this is not the whole picture. We are required by law to fund the plan based on actuarial valuations that look at the long-term viability of the plan to make sure we have enough money to pay for all future pension payments. On that basis, the plan is running both a deficit and a shortfall each year. While both valuations are correct, we are required to fund the plan on this long-term valuation.

7. This pension plan is in a deficit and running an annual shortfall. Changes to the plan are necessary to address the ongoing deficit and financial risk that is growing within the plan. Between 2010-17, the University has contributed $26.7 million in addition to its regular contributions to cover shortfalls and accumulated deficits of the plan, with an additional $3.1 million payment being made in 2018.

8. Current pensioners will not be affected by any future changes. Any changes to the plan would not affect retirees or members with deferred vested pensions (i.e., members who elected a deferred pension when they left the University).

9. Saskatchewan has some of the top defined contribution pension plans in Canada. Three of the top 10 defined contribution plans in Canada belong to Saskatchewan organizations. The combined U of S Money Purchase and Research Pension plan is number 11 with over $775 million in assets.