When you leave the university you will receive two types of pension, the current plan and the new Target Date Defined Contribution provision. The pension you have earned up to any change in the plan is protected by legislation and will not change.
How it Works
Members of the Non Academic Pension Plan and the university contribute equal amounts to individual investment accounts set up in each member’s name. The money is invested automatically and grows tax-free until the member retires, at which time the member uses the account value to provide retirement income. This aligns with the university’s other pension plans.
Employees and university
Contributions are invested in a fund that adjusts investments as your retirement approaches.
Depends on total contributions and investment performance.
Members will not need to make investment decisions for their defined contribution account. All contributions will be invested automatically in a target date fund based on the member’s planned retirement age. Under target date funds, contributions are invested and re-balanced automatically to reduce risk as a plan member gets closer to retirement.
Impact on monthly paycheque
|Increase in your take-home pay.
Giving you the flexibility to increase your personal savings, RRSP, TFSA or put extra money in your pocket each month
|New contribution rate of pensionable earnings to pension|
|Current contribution rate of pensionable earnings to pension|
Pension Calculation Examples
Employee one is 30 years old and has worked at USask for five years and plans to work for another 30 years before retiring.
|DB Benefit (5 years of service):||$7,759/year|
|DC Benefit (30 years of service):||$622,485|
Calculations are based on a 2% pay raise annually and an average return of 6.0% on the DC account.
Employee two has worked at USask for 30 years and plans on working another five years before retiring.
|DB Benefit (30 years of service):||$37,836/year|
|DC Benefit (5 years of service):||$48,339|
Calculations are based on a 2% pay raise annually and an average return of 5.0% on the DC account.