Ratification of the Pension Conversion
The following message just went out to members of the FT pension plan:
To: Active and Retired Members and Deferred Pension Holding Members of the Pension Plan for Academic Employees of the University of New Brunswick
From: UNB and AUNBT
Date: November 22, 2013
Re.: Ratification of the Agreement to Convert the Academic Employees Pension Plan to a Shared Risk Plan
In September 2012, the sponsoring parties to the Academic Employees Pension Plan (AEPP) of the University of New Brunswick — namely, the university and the Association of University of New Brunswick Teachers (AUNBT) — set up a working group to explore the possibility of converting the underfunded AEPP to a shared risk plan (SRP), an option newly available in New Brunswick as of August 2012. In June 2013, we advised active and retired plan members and deferred pension plan holders that negotiations between the parties had resulted in a tentative agreement to convert the AEPP to an SRP under Part II of the Pension Benefits Act. In October 2013, active and retired members and deferred pension plan holders were invited to attend a series of information sessions.
We would now like to inform you that, after due consideration, the full-time members of the AUNBT and UNB’s board of governors have voted in favour of accepting the tentative agreement to convert the AEPP to a SRP, to take effect as of July 1, 2013. You will recall that the AEPP was also a form of shared risk pension plan. Similar to the former AEPP, the administration and funding of the new SRP will be shared on a 50-50 basis, with UNB matching the contributions of academic employees.
For retirees and persons with deferred pensions the impact of a conversion will, with high probability, be minimal because of the actuarial plan design required by legislation and regulations.
It is important to note that the pension benefits of retired members, of deferred pension plan holders, and of active members as of July 1, 2013 will be unaffected on conversion. From that date forward, the provisions of the new plan will apply. Certain aspects of the former plan (e.g. spousal benefits) remain untouched, while other aspects (e.g. the “85-factor”) have been changed. More detailed information is available through the links provided below.
AUNBT and UNB are confident that this conversion will allow for a fairer, more equitable, and more secure and sustainable pension plan.
Please note that a list of FAQ’s can be viewed at http://aunbt.ca/2013/03/faq-active-members-pension.pdf. If you have questions or comments, please send an e-mail to email@example.com.
The related press release can be found on the UNB site.