All members can expect the same smooth and familiar service and we will continue to work closely with your university to ensure a seamless transition. Despite the unprecedented change around us, our focus remains firmly on you.
You will understandably have questions about what the transition means to you and what changes to expect. While our spring engagement sessions focus on gaining your input on our day one foundations, our post-launch engagement program (this fall) focuses specifically on your plan experience under the UPP.
For now, here’s a snapshot of what you can expect come July 1, 2021:
What WILL change:
You will start earning pension benefits under the UPP as of July 1, 2021. You will hear more from us, just as we hope to hear from you!
What WILL NOT change:
Benefits earned before July 1 under your university’s prior plan will remain the same. Retirees will continue to receive the benefits they expect. Your regular member services will continue as usual through your university plan administrator, with unchanged access to your trusted point of contact at your university.
What contributions are required under UPP?
Your contributions to the UPP starting July 1, 2021
Your employer will contribute an equal amount to the UPP for UPP service. Different contribution rules apply during certain types of leaves of absence and special programs.
IMPORTANT: Under the UPP, your earnings for contribution formula purposes will be capped at $181,700 (2021) increased annually in line with increases to the maximum pension rules under the Income Tax Act.
How will my pension be calculated?
The pension you receive is based on a formula that takes into account your best average earnings and pensionable service under the plan. Your contributions are based on a percentage of your pensionable earnings and your employer contributes an equal amount. As regular contributions flow into the plan, the funds are held in trust for plan members and invested by professional investors. Those investment earnings, as well as the contributions made by you and your employer, are what fund your pension.
How early can I retire?
Your Normal Retirement Date under the UPP is the last day of the month in which you reach age 65.
The earliest date that you can start receiving your pension is the first day of the month following your Early Retirement Date, which under the UPP is the last day of the month in which you reach age 55.
These retirement dates will apply as of July 1, 2021 to the benefits earned under your SEPP plan and the UPP.
What actions do I need to take on or before July 1?
You automatically become a member of UPP on July 1. No further action is needed.
I’m planning to retire soon. How will the shift to UPP impact me?
If you retire before July 1, 2021, your pension benefit will be based on the provisions of your university’s prior plan. If you retire on or after July 1, 2021, your pension will be based on the following:
- Service earned under your university’s prior plan up to July 1, 2021 plus
- Service you earn on or after July 1, 2021 under UPP.
Who do I talk to if I have questions about my pension plan or benefits?
Your regular member services will continue as usual through your university plan administrator, with unchanged access to your trusted point of contact at your university before and after July 1, 2021.
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Note: This information is provided as a guide to how the transition to the UPP will affect you on July 1, 2021. This information is not a complete description of the benefits available under the UPP or how they may differ from your prior plan benefits. Details will be made available soon and discussed further in our fall engagement discussions.