university of ottawa pension plan

UNIVERSITY OF OTTAWA PENSION PLAN
Lifestyle Planning, A transition to your future at retirement
Luc Lauzière May 20, 2015
uOttawa.ca
Last update: May 4, 2015
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Biography of
Luc Lauzière, BA, BCOM
University of Ottawa
Luc has been employed by the University of Ottawa since 1998 and is currently the Associate Director,
Pension Plans of the Pension Sector. Luc is perfectly bilingual.
Education and Training
Luc is a University of Ottawa Graduate in Administration (1986) and in Commerce with a Major in Human Resources
and a Minor in Accounting (1987). Since, Luc has acquired other training certifications in Human Resources, Pension
and Benefits.
Professional Experience
Since 1986 Luc has acquired work experience in Human Resources specifically in Pension and Benefits both in the
private and public sectors.
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University of Ottawa
University of Ottawa
University of Ottawa
LOEB Inc. (Provigo)
LOEB Inc. (Provigo)
C Corp. Inc.
Associate Director, Pension Plans
Manager, Pension Plans
Pension Officer
Benefits Advisor
Benefits Supervisor
Human Resources Coordinator
January 2012
April 2006
March 1998
February 1997
June 1992
Juin 1986
Present
December 2011
March 2006
February 1998
January 1997
Mai 1992
Main Functions, Pension Sector
As the Associate Director of the pension sector, Luc is responsible for all aspects of Pension Plans related work such as the
defined benefits pension plans of the University of Ottawa and the defined contributions Pension Plan of the University of Ottawa
Part Time Professors. Therefore, he provides leadership and expertise in management, strategic direction, design, governance
and respect of the University pension plans and other retirement programs. He is involved in issues affecting the administration
of pension plans, group insurance programs for retirees, manages the pension team’s operations and assists employees and
services/faculties with their inquiries as well as the different aspects relating thereto such as communications, benefits, finance,
compliance, regulations, integrated systems, training, service management and interpretation of official documents.
uOttawa.ca
Training program – Lifestyle Planning, A transi6on to your future at re6rement Administra6ve, Support and Academic Staff Members DAY 1: May 20 8:45 to 9:00
9:00 to 11:00
11:00 to 11:15
11:15 to 11:30
11:30 to 11:45
11:45 to 1:00
1:00 to 2:15
2:15 to 3:00
3:00 to 3:15
3:15 to 3:30
3:30 to 4:00
uOttawa.ca
uOttawa.ca
WELCOME Coffee & Fruits University of OTawa Pension Plan Luc Lauzière, Associate Director, Pension Plans Human Resources BREAK Support Staff Re6rees Associa6on (SSRA) Hélène Boivin and Claude Dufresne Associa6on of Professors Re6red from the University of OTawa (APRUO) Georges White LUNCH The physical aspects of re6rement Catherine Richards, Die66an Financial and Estate Planning Considera6ons Me David M. Bolger, Lawyer
Legal Counsel, Legal Services BREAK Development Office by Noëlla Beausoleil, M.Ed. Components of the Pension Plan Luc Lauzière, Associate Director, Pension Plans Human Resources AGENDA : May 20 and 21, 2015 Faculty of Social Sciences Hall – FSS4007 DAY 2: May 21 8:45 to 9:00
9:00 to 10:15
10:15 to 10:30
10:30 to 12:00
12:00 to 1:00
1:00 to 2:45 2:45 to 3:00
3:00 to 4:00
4:00 to 4:15
WELCOME Coffee & Fruits Personal Finances: Cash Flow, RRSPs, RRIFs , Annui6es Richard Vanasse, FSA, FCIA, MERCER BREAK Personal Finances: Cash Flow, RRSPs, RRIFs , Annui6es (Con’t) Richard Vanasse, FSA, FCIA, MERCER LUNCH Dynamics of Re6rement: Psychological Prepara6on
Suzanne Nault, MPs BREAK Dynamics of Re6rement: Psychological Prepara6on
Suzanne Nault, MP (Con’t) EVALUATION AND QUESTIONS
AGENDA
Section 1-Pension Plan
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Defined Benefit Pension Plan
Supplemental Pension Plan
Retirement Income
Financial Planning
Pension Governance Structure
Statistics
Non compulsory retirement
Required contributions (employee/employer)
Benefit formula
Date of retirement and examples
Voluntary contributions
Pension indexation
Survivor benefit options
Pension beneficiaries
Pension Summary
Section 2-Retiring allowance
Ø  The Canada Revenue Agency (CRA) and the definition
Ø  Policy 53, Section 42.05 SSUO-OSSTF, Section 32.05 PIPSC and APUO Section 40.3 (Not applicable for
Contractual) and example
Ø  Phased Retirement under APUO Subsection 40.3.2 and example
Ø  Retirement Notice
Section 3-Group Benefits
Ø  Insurance coverage and other benefits
Section 4-Working Tools
Ø  Reference to your personal pension statement and Annual Report
Ø  Financial planner
uOttawa.ca
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Section 1 - Pension Plan
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uOttawa.ca
Defined Benefit Pension Plan
Supplemental Pension Plan
Retirement Income
Financial Planning
Pension Governance Structure
Statistics
Non compulsory retirement
Required contributions (employee/employer)
Benefit formula
Date of retirement and examples
Voluntary contributions
Pension indexation
Survivor benefit options
Pension beneficiaries
Pension Summary
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DEFINED BENEFIT PENSION PLAN
The University of Ottawa Pension Plan is a defined-benefit plan. This means that, at the time of your retirement, you
will receive a pension based on a formula that takes into account the average salary of your best 60 months of
earnings and the number of years of credited service you have in the Plan.
-Average Salary
-Pension Service
-Pension Formula
=
Pension Payable (Retirement)
X
Actuarial Factors
=
Commuted Value (Death)
uOttawa.ca
-Contributions
Employee and
Employer
=
Required Funds
Investments
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SUPPLEMENTAL PENSION PLAN
The Supplemental Plan is to provide an amount or amounts to participating Members which, when added to the
pension benefits under the Basic Plan, will provide them with benefits in excess of the maximum pension benefits
imposed under the Income Tax Act subject to the terms and conditions as outlined in the Supplemental Plan. The
Supplemental Pension Plan is not a registered pension plan. To be eligible your average salary at the date of
retirement will have to be above the average maximum salary of $154,172 set by the CRA and will provide a
benefit up to the Plan average maximum salary of $195,876 as at January 1st, 2015. The maximum salary for the
supplemental plan contributions is currently set at $207,667.
uOttawa.ca
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RETIREMENT INCOME
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Canada/Québec Pension Plan (CPP/QPP)
Old Age Security (OAS)
Other employer pension plan(RPP)
Registered Retirement Savings Plan(RRSP)
Retirement Allowance
Personal Savings
Tax-Free Savings Accounts (TFSA)
Investment Income
Personal Assets
Spouse’s Income
Fiscal Impact
Employment/Business Income
Other Plans
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FINANCIAL PLANNING
uOttawa.ca
PENSION GOVERNANCE STRUCTURE
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Organizational Chart of responsibilities and reporting relationships
Plan Sponsor and Administrator:
- Governance structure
- Policies (investment;
funding)
- Plan terms and provisions
Board of Governors
Executive Committee
Pension Plan Committee
Pension Fund Investment
Committee
President
Treasurer/Director
Pension Fund
Pension Fund Investment:
- Policy recommendations
- Investment Strategy
-  Manager selection and oversight
-  Performance objectives
Key Advisors:
Actuary; trustee/custodian;
investment managers;
consultants
Assistant Director
Treasury &
Pension Fund
Assistant Director
Private Market
Investments
Administrative
Committee
V-P Resources
Associate V-P Human
Resources
Director, HR Total
Compensation
Associate Director,
Pension Plans
Treasury Analyst
Pension Plans
Coordinator
uOttawa.ca
Pension Plans
Coordinator
Pension Plan Administration:
- Member entitlements
- Member communications
-  Pension administration
-  Prescribed filings
Key Advisors:
Actuary; trustee/custodian;
regulatory authorities
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STATISTICS
University of Ottawa Pension Plan Statistics as at December 31, 2014:
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Fund Value
1,872,419,564 $
Pension Benefits Paid
62,874,961 $
Withdrawal/Transfers
8,556,068 $
Employee Contributions Remitted
18,026,633 $
Employer Contributions Remitted
45,360,470 $
Employer Special Contributions Remitted
2,788,800 $
Transfer Value in the Plan
3,332,198 $
Buy-Back Value in the Plan
813,869 $
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Number of Retirees/Pensionners
Number of Active Member
Number of Deferred Member
2,021
3,496
776
Plan Activities as at December 31, 2014:
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New Members
New Retirees (active and deferred members)
Deceased Retirees
Terminated Members
Deceased Active Members
Amortized Buy-Back
Withdrawals/Transfers
uOttawa.ca
210
107
48
93
4
55
62
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NON-COMPULSORY RETIREMENT
Bill 211
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In June 2005, the Ontario Minister of Labour introduced Bill 211, An Act to amend the Human
Rights Code and certain other Acts to end mandatory retirement. The Act received Royal
Assent on December 12, 2005, to take effect one year after this date.
Mandatory retirement ended on December 12, 2006.
Ending mandatory retirement will not have an impact on pension benefits already earned.
Employees can continue membership in pension plans and accrue benefits past age 65
subject to service or contribution caps.
You can contribute to the pension plan up to November 30th in the calendar year in which
you attain the age of 71. Please note that your pension benefit is payable effective the month
of December of that same calendar year.
uOttawa.ca
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REQUIRED CONTRIBUTIONS (EMPLOYEE/EMPLOYER)
A. 
Required employee contributions
Up to the Integration Level*
Above the Integration Level
B. 
Reform
(Pre-2004)
3.40%
5.24%
Post-reform
(Post-2003)
4.85%
7.50%
8.50%
13.29%
Reform
(Pre-2004)
$31,790
Post-reform
(Post-2003)
$37,793
Employer contributions
Current Integration Level
*Integration level
The University pension plan provides for a pension that differs for the portion of earnings below and above a
certain threshold. The threshold of earnings is based on the maximum earnings (YMPE) covered for purposes
of determining the pension payable from the Canada and Quebec Pension Plan and differs for service before
and after January 1st, 2004. Currently the Canada and Quebec Pension Plan set this amount at $53,600 for
2015.
uOttawa.ca
PENSION BENEFIT FORMULA
A. 
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Pension calculation formula (following the reform)
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Average salary = 60 best months up to the maximum CRA prescribed salary of $154,172 as
at January 1st, 2015
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For the Pre-2004 service the Integration Level is set at $31,790
Please note that there is no maximum pensionable service in the pension plan.
Service to December 31, 2003 (Pre-2004)
uOttawa.ca
i) $31,790 X 1.3% X pension participation
ii) (Average salary - $31,790) X 2% X pension participation
=a
=b
Total annual pension pre-2004 (a + b)
=c
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B.  Pension calculation formula (post reform)
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Average salary = 60 best months (Total pension service)
Pre-2004 set Integration Level of $31,790 indexed annually at a rate of 55 % of the increase in
the YMPE*
Service Post -2003
i) $37,793 X 1.3% X pension participation
ii) (Average salary - $37,311) X 2% X pension participation
Total annual pension post-2003 (a + b)
Total Annual Pension UO
=a
=b
=d
(c + d)
MINIMUM PENSION TEST
As part of the pension plan reform, a participant to the University pension plan is entitled to a
minimum pension equal to 1.5% for each pension year. (Average salary X 1.5% X pension
participation)
MAXIMUM CRA PENSION RULE
As part of the CRA Pension rules, the maximum pension plan entitlement in a registered pension plan
is $2,818.89 per year of pensionable service effective January 1st, 2015.
*Year’s Maximum Pensionable Earnings (YMPE)
This is the amount the government sets each year, and uses to base your contributions to (as well as
your benefits from) the Canada Pension Plan or Quebec Pension Plan. In 2015, the YMPE is $53,600.
Annual changes to the YMPE are based on increases in average Canadian industrial wages.
uOttawa.ca
uOttawa.ca
PENSION BENEFIT FORMULA-Supplemental Plan
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Pension calculation formula (following the reform)
Average salary = 60 best months above the maximum pensionable earning set by the CRA of
$154,172 as at January 1st, 2015 and below the maximum average supplemental plan earnings
set at $195,876 as at December 31, 2014.
1-Service to December 31, 1998 (Pre-1999)
i) 2015 Pre-1999 Dollar Limit
=a
ii) 2015 Maximum CRA Pension Rule
=b
Total annual pension pre-1999 (a - b)
=c
2-Service post 1998 (1999 to 2003)
i) $31,790 X 1.3% X pension participation
ii) (Average salary - $31,790) X 2% X pension participation
iii) 2015 Max. CRA Pension X pension participation
Total annual pension post 1998 ((a + b) - c)
=
=
=
=
a
b
c
d
3-Service post 2003 (2004 to 2007) (Excluding 2008 to 2014 – 7 years)
i) $37,793 X 1.3% X pension participation
=a
ii) (Average salary - $37,793) X 2% X pension participation
=b
iii) 2015 Max. CRA Pension X pension participation
=c
Total annual pension post 2003 ((a + b) - c)
=e
Total Annual Pension UO
(c + d + e)*
* (A pension of at least 10% of the current YMPE will be payable otherwise a lump sum actuarial value)
uOttawa.ca
DATE OF RETIREMENT
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The normal retirement date for administrative staff is the 1st of the month following your
65th birthday. The normal retirement date for academic staff is the 1st of July following your
65th birthday. However, you can retire earlier. In such a case:
Factor 90 applies
uOttawa.ca
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55 years
Early
60 years
Optional
65 years
Normal
10 000$
15 000$
20 000$
PENSION CALCULATION EXAMPLE 1-Service to December 31, 2014
AGE:
60 years
SERVICE: 25 years
1)
2)
AVERAGE SALARY:
INTEGRATION LEVEL:
$40,000
$31,790 / $37,793
SERVICE PRE-2004
i) $31,790 X 1.3% X 14
ii) 
$8,210 X 2% X 14
=
=
$5,785.78
$2,298.80
$8,084.58
SERVICE POST-2003
i) $37,793 X 1.3% X 11
ii) $2,207 X 2% X 11
=
=
$5,404.40
$485.54
$5,889.94
Total pension UO 1 + 2
$13,974.94
MINIMUM PENSION TEST ($40,000 X 1.5% X 25)
=
3) CPP/QPP maximum reduced (-34.80%) pension
=
$8,332.56
Total UO + CPP/QPP
=
$23,332.56
uOttawa.ca
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PENSION CALCULATION EXAMPLE 2 -Service to December 31, 2014
AGE:
60 years
SERVICE: 15 years
1)
2)
AVERAGE SALARY:
INTEGRATION LEVEL:
$60,000
$31,790 / $37,793
SERVICE PRE-2004
i) $31,790 X 1.3% X 4
ii) 
$28,210 X 2% X 4
=
=
$1,653.13
$2,256.80
$3,909.93
SERVICE POST-2003
i) $37,793 X 1.3% X 11
ii) $22,207 X 2% X 11
=
=
$5,404.40
$4,885.54
$10,289.94
Total pension UO 1 + 2
MINIMUM PENSION TEST ($60,000 X 1.5% X 15)
=
$13,500.00
3) CPP/QPP maximum reduced (-34.80%) pension
=
$8,332.56
Total UO + CPP/QPP
=
$22,532.43
uOttawa.ca
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PENSION CALCULATION EXAMPLE 3 -Service to December 31, 2014
AGE:
60 years
SERVICE: 25 years
1)
2)
AVERAGE SALARY:
$90,000
INTEGRATION LEVEL: $31,790 / $37,793
SERVICE PRE-2004
i) $31,790 X 1.3% X 14
ii) 
$58,210 X 2% X 14
=
=
$5,785.78
$16,298.80
$22,084.58
SERVICE POST-2003
i) $37,793 X 1.3% X 11
ii) $52,207 X 2% X 11
=
=
$5,404.40
$11,485.54
$16,889.94
Total pension UO 1 + 2
MINIMUM PENSION TEST ($90,000 X 1.5% X 25)
=
3) CPP/QPP maximum reduced (-34.80%) pension
=
$8,332.56
Total UO + CPP/QPP
=
$47,307.08
uOttawa.ca
$33,750.00
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PENSION CALCULATION EXAMPLE 4 -Service to December 31, 2014
AGE:
60 years
SERVICE: 25 years
1)
2)
AVERAGE SALARY:
INTEGRATION LEVEL:
MAX. CRA SALARY:
$130,000
$31,790 / $37,793
$154,172
SERVICE PRE-2004
i) $31,790 X 1.3% X 14
ii) 
$98,210 X 2% X 14
=
=
$5,785.78
$27,498.80
$33,284.58
SERVICE POST-2003
i) $37,793 X 1.3% X 11
ii) $92,207 X 2% X 11
=
=
$5,404.40
$20,285.54
$25,689.94
Total pension UO 1 + 2
- MINIMUM PENSION TEST ($130,000 X 1.5% X 25)
- MAXIMUM CRA PENSION RULE ($2,818.89 X 25)
=
=
3) CPP/QPP maximum reduced (-34.80%) pension
=
$8,332.56
Total UO + CPP/QPP
=
$67,307.08
uOttawa.ca
$48,750.00
$70,472.25
PENSION CALCULATION EXAMPLE 5 -Service to December 31, 2014
AGE:
60 years
SERVICE: 25 years
1)
2)
AVERAGE SALARY:
INTEGRATION LEVEL:
MAX. CRA SALARY:
$160,000
$31,790 / $37,793
$154,172
=
=
$5,785.78
$35,898.80
$41,684.58
SERVICE POST-2003
i) $37,793 X 1.3% X 11
=
ii) $122,207 X 2% X 11
=
Total pension UO 1 + 2
$5,404.40
$26,885.54
SERVICE PRE-2004
i) $31,790 X 1.3% X 14
ii) 
$128,210 X 2% X 14
$32,289.94
$73,974.52
- MINIMUM PENSION TEST ($160,000 X 1.5% X 25)
- MAXIMUM CRA PENSION RULE ($2,818.89 X 25)
=
=
3) CPP/QPP maximum reduced (-34.80%) pension
=
$8,332.56
Total UO + CPP/QPP
=
$78,804.81
uOttawa.ca
$60,000.00
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PENSION CALCULATION SUPPLEMENTAL EXAMPLE 5-Service to December 31, 2014
AGE:
60 years
SERVICE: 25 years
MAX PRE-1999:
MAX CRA:
1)
2)
3)
$2,640.51
$2,818.89
SERVICE PRE-1999
i) ($2,640.51 - $2,818.89) X 9
AVERAGE SALARY:
INTEGRATION LEVEL:
MAX CRA SALARY:
MAX AVERAGE SALARY:
=
SERVICE POST-1998 (From 1999 to 2003)
i) $31,790 X 1.3% X 5
= $2,066.35
ii) $128,210 X 2% X 5
= $12,821.00
iii) $2,818.89 X 5
=
$160,000
$31,790/$37,793
$154,172
$195,876
$0.00
$14,887.35
$14,094.45
$792.90
SERVICE POST-2003 (From 2004 to 2007) (Excluding 2008 to 2014 – 7 years)
i) $37,793 X 1.3% X 4
= $1,965.24
ii) $122,207 X 2% X 4
= $9,776.56 $11,741.80
iii) $2,818.89 X 4
=
$11,275.56
$466.24
Total annual pension UO (1 + 2 + 3)
uOttawa.ca
PENSION CALCULATION EXAMPLE 6 -Service to December 31, 2014
AGE:
60 years
SERVICE: 25 years
1)
2)
AVERAGE SALARY:
INTEGRATION LEVEL:
MAX. CRA SALARY:
$170,000
$31,790 / $37,793
$154,172
=
=
$5,785.78
$38,698.80
$44,484.58
SERVICE POST-2003
i) $37,793 X 1.3% X 11
=
ii) $132,207 X 2% X 11
=
Total pension UO 1 + 2
$5,404.40
$29,085.54
SERVICE PRE-2004
i) $31,790 X 1.3% X 14
ii) 
$138,210 X 2% X 14
$34,489.94
$78,974.52
- MINIMUM PENSION TEST ($170,000 X 1.5% X 25)
- MAXIMUM CRA PENSION RULE ($2,818.89 X 25)
=
=
$63,750.00
3) CPP/QPP maximum reduced (-34.80%) pension
=
$8,332.56
Total UO + CPP/QPP
=
$78,804.81
uOttawa.ca
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PENSION CALCULATION SUPPLEMENTAL EXAMPLE 6-Service to December 31, 2014
AGE:
60 years
SERVICE: 25 years
MAX PRE-1999:
MAX CRA:
1)
2)
3)
$2,640.51
$2,818.89
SERVICE PRE-1999
i) ($2,640.51 - $2,818.89) X 9
AVERAGE SALARY:
INTEGRATION LEVEL:
MAX CRA SALARY:
MAX AVERAGE SALARY:
=
SERVICE POST-1998 (From 1999 to 2003)
i) $31,790 X 1.3% X 5
= $2,066.35
ii) $138,210 X 2% X 5
= $13,821.00
iii) $2,818.89 X 5
=
$170,000
$31,790/$37,793
$154,172
$195,876
$0.00
$15,887.35
$14,094.45
$1,792.90
SERVICE POST-2003 (From 2004 to 2007) (Excluding 2008 to 2014 – 7 years)
i) $37,793 X 1.3% X 4
=
$1,965.24
ii) $132,207 X 2% X 4
= $10,576.56 $12,541.80
iii) $2,818.89 X 4
=
$11,275.56
$1,266.24
Total annual pension UO (1 + 2 + 3)
uOttawa.ca
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VOLUNTARY CONTRIBUTIONS
• For pre-1988 service, $200 per year of pensionable earning prior to 1988 (excluding buy-back
and transferred service)
• Payable at termination, death, retirement or for pension service buy-back
• RRSP transfer or cash/taxable option
Estimated value of voluntary contributions
• 25 years of service at December 31, 2014:
-No initial amount
• 30 years of service at December 31, 2014:
-Initial amount of $600
• 35 years of service at December 31, 2014:
-Initial amount of $1,600
uOttawa.ca
$00.00
$5,243.55
$13,982.79
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PENSION INDEXATION
A) 
B) 
Three steps indexation formula based on inflation from previous year
(Consumer Price Index (CPI)-September to October)
1. 
Full indexation if inflation is less than 2%
2. 
2% automatic indexation if inflation is between 2% and 3%
3. 
Inflation minus 1% if inflation is between 3% and 8% (Max 8%)
Special Ad Hoc indexation
Annual revisits of percentage not accorded in 2 & 3
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SURVIVOR PENSION BENEFIT TO THE SPOUSE AND GUARANTEE PERIODS
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Standard Option
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5 years guarantee / 60% Survivor benefit to the spouse
• Therefore, if your death occurs on or before the guarantee period;
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and you are survived by your spouse, he/she will receive your full monthly pension until the
end of the 5 years guarantee and then it will reduce to 60% for his/her lifetime.
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and there is no surviving spouse, a lump sum representing the value of the remaining
guaranteed monthly payments becomes payable to your Estate.
• Should your death occur after the guarantee period;
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and your spouse survives you, his/her monthly benefit will be 60% of your benefit for her
lifetime.
- 
and there is no surviving spouse, the pension payments cease; there is no death benefit
payable to the estate
because the guarantee period is expired.
Optional Options
Ø 
0 years guarantee / 60% Survivor benefit
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10 years guarantee / 60% Survivor benefit
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15 years guarantee / 60% Survivor benefit
Ø 
100% lifetime with 0-5-10-15 years guarantee periods
-Reduction of approx. 15% for the 100% survivor benefit
-Reduction of approx. 2% for a 10 years guarantee period
-Reduction of approx. 5% for a 15 years guarantee period
Note: There is only one choice at retirement .
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PENSION BENEFICIARIES
Pre-retirement (Pension Benefit Value payable):
1)
Spouse
The person married to you by a religious or civil ceremony or with whom you
have been living in a relationship that resembles a marriage for at least one year
and whom you have designated in writing to the University as your spouse.
Based on pension plan text, waiver of spousal benefit allowed before retirement.
2) 
Designation or Estate
Post-retirement (Survivor Benefit payable based on choice):
1) 
Spouse
Same as above. Based on pension plan text, no waiver of spousal benefit is
offered at retirement.
2) 
Children
Your eligible dependent children as per the provisions of the plan are your natural
or adopted children under 19 at retirement whom you support and/or who is
under age 27 and a full time student in a recognized education institution and/or
is physically or mentally disabled.
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PENSION PLAN SUMMARY
THE UNIVERSITY OF OTTAWA RETIREMENT PENSION PLAN
PROJECTED OPTIONAL RETIREMENT
Estimation of projected retirement benefits
Name:
Employee Number:
Projected Retirement Date:
Age at Retirement Date:
Date of Employment:
Seniority Date:
Current Salary:
Credited service for Pension:
Employment Service:
Retiree
100000000
2009
60.0000 years old
1985
1985
$85,000.00
18.0000 years (includes buyback of past service)
24.5640 years
Estimated projected monthly pension from
UO pension plan, before statutory deductions
Estimated monthly benefit from Canada Pension Plan
$636.13
Early Retirement Allowance - Lump sum
Formula: $800.00 * 24.5640 * 5.0000
As per your Collective Agreement; http://www.hr.uottawa.ca/
Family coverage
End Date:
This option is available only if you are covered for Dental
Insurance on your retirement
Hospital Room Insurance
At member's expense: premiums are deducted
from monthly pension
Current monthly rate:
Health Care Spending Account (HCSA)
Terms/Grants/GFT are not eligible
Family coverage
$66.36 per month - Basic
$42.62 per month - Optional
June 30, 2014
Family coverage
$21.49 per month - Private room
$13.20 per month - Semi-private room
End date not applicable
$1,125.00 per year
Eligible Medical Expenses as per Canada Revenue
Agency http://www.craarc.gc.ca/tax/individuals/topics/incometax/return/completing/deductions/lines300350/330/allowable-e.html
$28,000.00 transferable to an RRSP under
paragraph 60(j.1) of the Income Tax Act (ITA)
$70,256.00 excess retirement allowance,
subject to income tax
$98,256.00 total retirement allowance
PLEASE NOTE THAT ALL INSURANCE RATES ARE SUBJECT TO CHANGE AS THE PREMIUMS ARE REVIEWED
EVERY YEAR.
Other Benefits available to you:
• Tuition Fee Exemption: For you, your spouse and your eligible dependents under the age of 26,
until you reach the age of 70
• Use of Libraries
• Access to Sports Services
$1000.00 transferable to an RRSP under subsections 147.3(1) -(7) of the ITA
The interest rate for the current year has been used to project the value of your voluntary contributions at retirement.
.../2
•
Email account
01 April 2009
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$185.05 per month
June 30, 2014
This benefit is prorated for first year of retirement
Lump Sum or Monthly Pension
The early retirement allowance has been calculated based on the provision in effect at the time of calculation.
Voluntary Contributions - Lump sum
Supplementary Health Insurance
At member's expense: premiums are deducted
from monthly pension
Current monthly rate:
This option is available only if you are covered for Hospital
Room Insurance on your retirement
For more information on CPP benefit, you may contact Human Resources Development Canada, Income Security Programs at 1800-277-9914 or visit the website at www.hrsdc.gc.ca.
Registration: http://www.servicecanada.gc.ca/en/online/mysca.shtml
Supplementary Pension Plan -
$5,000.00
Dental Insurance
Terms/Grants/GFT are not eligible
At member's expense: premiums are deducted
from monthly pension
Current monthly rate:
The calculation of your pension is based on the pension formula in force at January 1, 2004. The projection shown above assumes
that you will participate in the pension plan at 100% until your Projected Retirement Date. This projection is based on your current
salary and does not take into account any future salary increases. For service credited since January 1, 2004, the calculations are
based on the current Yearly Maximum Pensionable Earnings (YMPE) under Canada Pension Plan (CPP). The current actuarial
factors have been used to determine the actuarial reduction, if applicable. The actuarial factors are subject to change monthly.
Current Maximum benefit at age 65 is $908.75/mth for 2009
Current Maximum benefit at age 60 is $636.13/mth for 2009
Life Insurance
- premium paid by UO
- taxable benefit to member
End Date:
This option is available only if you are covered for
Supplementary Health Insurance on your retirement
$3,000.00
-2-
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Section 2 - Retiring allowance
Ø  The Canada Revenue Agency (CRA) and the definition
Ø  Policy 53, Section 42 SSUO-OSSTF, Section 36 PIPSC, Section 35 Local 772-A, Section 24
Local 772-B and APUO Section 40.3 (Not applicable for Contractual Employees) and
examples
Ø  Phased Retirement under the APUO collective agreement Subsection 40.3.2 and example
Ø  Retiring allowance Notice
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RETIRING ALLOWANCE
Official CRA definition
A retiring allowance (also called severance pay) is an amount paid to officers or employees when or
after they retire from an office or employment in recognition of long service or for the loss of office
or employment.
A retiring allowance includes:
•  payments for unused sick leave credits on termination; and
•  amounts individuals receive when their office or employment is terminated, even if
the amount is for damages (such as wrongful dismissal) when the employee does not
return to work.
A retiring allowance does not include:
•  a superannuation or pension benefit;
•  an amount an individual receives as a result of an employee's death (these payments
may be treated as death benefits);
•  a benefit derived from certain counseling services;
•  payments for accumulated vacation leave not taken prior to retirement;
•  wages in lieu of termination notice; and
•  damages for violations or alleged violations of an employee’s human rights awarded
under human rights legislation to the extent these damages are not taxable.
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RETIRING ALLOWANCE
Formula for all Administrative Employee Groups (Based on the UO policy 53 or collective
agreements)
Policy 53, Section 42 PSUO-FEESO, Section 36 IPFPC
A) Less than 60 years of age without factor 90
2003 Standard salary class at retirement X .004 X UO service X 5 maximum
B) 60 years of age or under age 60 with the factor 90
2003 Standard salary class at retirement X .006 X UO service X 5 maximum
Section 35 Local 772-A Section 24 Local 772-B
Formula Factor 90 not reached and less than 60 of age:
180$ X service UO au pro-rated X 5 maximum factor
Formula Factor 90 or 60 of age: 215$ X service UO au pro-rated X 5 maximum factor
Formula for Academic Employees (Based on your collective agreement section 40.3)
To be eligible before age 60, the factor 90 (age plus pension service Subsection 40.3.1) must be reached.
Retirement Allowance Formula: $800 X UO Service pro-rated X 5 maximum factor
The Revenue Canada Agency tax sheltering policy (Under paragraph 60(j.1) of the Income Tax Act)
$ 2,000 for each year of service (pre-1996) may be transferred to an RRSP
plus
$1,500 for each non-contributory year of service pre 1989
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RETIRING ALLOWANCE - Examples as at December 31, 2014
Non
Taxable
Taxable
Non Union 58/25 (69 305*.004*25*5)= 34 653$
NM1
60/25 (69 305*.006*25*5)= 51 979$
62/25 (69 305*.006*25*3)= 31 187$
12 000$
12 000$
12 000$
22 653$
39 979$
19 187$
SSUO/
PIPSC 8
58/25 (43 891*.004*25*5)= 21 945$
60/25 (43 891*.006*25*5)= 32 918$
62/25 (43 891*.006*25*3)= 19 751$
12 000$
12 000$
12 000$
9 945$
20 918$
7 751$
SSUO/
PIPSC 10
58/25 (54 768*.004*25*5)= 27 384$
60/25 (54 768*.006*25*5)= 41 076$
62/25 (54 768*.006*25*3)= 24 646$
12 000$
12 000$
12 000$
15 384$
29 076$
12 646$
Local
772 A-B
58/25 (180*25*5)= 22 500$
60/25 (215*25*5)= 26 875$
62/25 (215*25*3)= 16 125$
APUO
58/25 (800*25*0)= 00 000$
60/25 (800*25*5)= 100 000$
62/25 (800*25*3)= 60 000$
Class
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Age/service-Formula per ratio-Total
12 000$
12 000$
12 000$
00 000$
12 000$
12 000$
10 500$
14 875$
4 125$
00 000$
88 000$
48 000$
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PHASED RETIREMENT (Refer to Fact Sheet)
Summary
The new Transition to retirement benefit is available to APUO members who wish to have a reduced
workload in the last years before their normal retirement date. This is available to members who are
eligible to receive the benefit detailed under subsection 40.3.1 (the normal retirement date is defined
as July 1st following age 65). The program allows members to bring their regular salary up to their
nominal salary using portions of the severance payment that would be payable to them under 40.3.1.
During the transition period, members accumulate full pension credits as per the provision of the
Pension Plan by contributing up to the level of their nominal salary. This commitment to retire is
irrevocable at the termination of the transition period once the agreement has been signed.
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PHASED RETIREMENT PENSION CALCULATION APUO 40.3- Example
AGE:
UO SERVICE:
REDUCED WORKLOAD:
TRANSITION DATE:
1)
2)
60 years
30 years
50%
st
July 1 , 2015
NOMINAL SALARY:
FUTURE PENSION SERVICE:
TOTAL PAYABLE SALARY:
RETIREMENT DATE:
Severance calculation as at July 1st, 2015 at age 60
Calculation is determined by the Pension Sector at the transition date
i)$800 X 30 years UO service X 5 years before normal age of retirement
36
$140,000
33 years
75%
st
July 1 , 2018
= $120,000
Calculation of severance payable (Objective: 75% of total salary)
i)Annual maximum receivable as per nominal salary:
75% X $140,000 = $105,000
ii)Annual payable as per reduced workload:
50% X $140,000 = $70,000
Annual Severance distribution
= $35,000
The amount of $35,000 will be payable each year as a salary for a period of 3 years prior to retirement for a
total of $105,000 and the objective will be reach.
3)
Calculation of balance due at retirement, if applicable
i)Severance calculation in (1) minus annual distribution: $120,000 - $105,000=$15,000
The difference at the end of the transition period will be transferable/payable at retirement and could be tax
exempt as a retirement allowance, under paragraph 60(j.1) of the Income Tax Act (ITA).
4)
Pension Benefit calculation as at July 1st, 2018 at age 63
Calculation is determined by the Pension Sector and is a projected estimate at retirement as per the pension
plan provisions.
5) 
Confirmation with the member
Form 17 Pension to be completed for communication and confirmation of amounts payable by payroll.
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RETIRING ALLOWANCE-NOTICE
You are planning to retire soon?
Non-unionized Administrative Staff - Policy 53
Non-unionized administration staff members with salary classes NC1 to NC8 must give a notice of retirement at least three
months prior to departure, and administration staff members with salary classes NM1 to NM5 must give a notice of retirement at
least six months prior to departure.
Section 42.05 PSUO-OSSTF
Employees shall give three (3) months of notice that they are retiring in order to receive the retirement allowance. Such notice is
irrevocable. Employees are encouraged to give as much notice as possible in order to help the faculty or service with its budget
and succession planning.
Section 32.05 PIPSC
Employees shall give three (3) months of notice that they are retiring in order to receive the retirement allowance. Such notice is
irrevocable. Employees are encouraged to give as much notice as possible in order to help the faculty or service with its budget
and succession planning.
Section 38 APUO
A faculty or language teacher member will notify her dean of her resignation in writing no later than four (4) months prior to its
effective date. The effective date of departure should normally coincide with the end of a term. In the case of retirement, her
resignation should normally be effective 30 June. A member's employment may be terminated at any other time by agreement of
the member and the employer.
A librarian or counsellor member will notify the university librarian or her dean of her resignation in writing no later than two (2)
months prior to its effective date. A member’s request for vacation leave during this resignation period will not be unreasonably
refused. A member's employment may be terminated at any other time by agreement of the member and the employer.
Contact Human Resources. They will assist you in completing the required forms and explain the steps to follow to apply for a
pension from the government plans.
Please note that Human Resources will need three months to process your retirement file.
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38
Section 3 - Group Benefits
Ø  Definition
Ø  Group Benefits
Ø  Hospital, Health and Dental Insurance
Ø  Life Insurance
Ø  Health Care Spending Account
Ø  Other benefits
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GROUP BENEFITS
Definition
Benefits consist of various programs that are offered to retirees in addition to their
pension benefit. These benefits may include group insurance (health, dental, life,
hospitalization, etc.), reimbursement of tuition fees, a health care spending account and
access to other services at the University of Ottawa.
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GROUP INSURANCES
Hospital, Health and Dental Insurances
(monthly premium May 1st, 2015 before provincial tax)
• 
• 
• 
Hospital insurance (Semi-private/Private)
Health care plan *
Dental insurance*
Single
$7.85-$11.05
$82.02
$23.40
Family
$14.83-$24.17
$212.04
$70.68
The monthly premiums are paid by the retiree.
• 
Coverage for health care and dental plan for an administrative retired employee will be in effect
until the end of the month preceding the 65th birthday. Coverage for health care and dental plan
for an academic retired employee will be in effect until June 30 following the 65th birthday or July
1st coincident with the attainment of the normal retirement date.
After 65 of
• 
• 
• 
uOttawa.ca
age, the following programs are available (Booklets are available) :
MROO, (Municipal Retirees Organization of Ontario)
Follow-me (Manulife Financial)
RTIP-OTIP (Retired Teachers Insurance Plan of Ontario)
LIFE INSURANCE AND HEALTH CARE SPENDING ACCOUNT
Life Insurance
If employee became insured:
• Prior to May 1, 1971
Ø  50% of salary at retirement (Max $100,000 of coverage)
• On or after May 1, 1971 but prior to July 1, 1976
Ø  2.5% of salary at retirement per year of service max 20 years (Min $2,000 Max $100,000)
• On or after July 1, 1976
Ø  10 years service or less = $2,000
Ø  more than 10 years of service = 10% of salary at retirement (Min $2,000 Max $5,000)
-The monthly premiums to maintain the life insurance coverage are at the University’s cost and is a
taxable benefit for the retiree, a taxation slip will be issued.
-Any transfer of pension service is not recognized under the hire date
Health Care Spending Account
Health Care Spending Account (Manulife Financial in effect for Academics since May 1st,
2001)
• Annual Health Care Spending Account of $1,250 as at January 1st, 2015 (Contract 14101)
Health Care Spending Account (Manulife Financial in effect for Administrative since May 1st,
2002)
• Applies to employees with a minimum of 10 years of employment service
• Annual Health Care Spending Account of $96 (Contract 14101) and not applicable for contractual
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OTHER BENEFITS
1) Tuition fee exemption for administrative employees and eligible dependants until retiree’s
70th birthday (not applicable for contractual employees)
Tuition fee exemption for academic employees and eligible dependants
Refer to Section 40.6.1.2 of Collective Agreement
2) Library services
3) Sports services
4) E-mail services
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Section 4 - Working Tools
Ø 
Ø 
Ø 
Ø 
Ø 
uOttawa.ca
Reference to Personal Statement and Annual Report
Human Resources Web Site
Pension Plan Fact Sheets
Personalized Web Site
Financial planner
PERSONAL STATEMENT AND ANNUAL REPORT
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HR WEB SITE: WWW.HR.UOTTAWA.CA/
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PENSION PLAN FACT SHEETS
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PERSONALIZED WEB SITE
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FINANCIAL PLANNER
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QUESTIONS
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