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What is a defined benefit pension plan?
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- What is a Defined Benefit Pension Plan?
What to know about defined benefit pension plans and what UPP offers.
Planning for retirement is an important part of your financial journey. Understanding the advantages of UPP’s defined benefit pension plan, and how it can contribute to your long-term retirement objectives, can help you make informed decisions about your future. In this article, we will explore what a defined benefit (DB) pension plan is, how it works, and the advantages it provides you. Whether you’re just starting to think about your future or nearing retirement, this information highlights the value of your UPP defined benefit pension plan.
What is a defined benefit (DB) pension plan?
A DB pension plan, like UPP, gives you the security of a predictable, guaranteed monthly income for life once you retire. Your pension is calculated using a set formula based on your earnings and years of service, rather than being tied directly to investment performance, like a defined contribution pension plan or other retirement savings vehicles.
In a DB plan, both you and your employer typically make contributions that are pooled into a fund. The plan administrator is responsible for investing and managing the fund and paying pensions to members. Depending on the plan’s terms, pensions may increase over time through cost-of-living adjustments, sometimes referred to as indexation.
The advantages of being a UPP member
As a member of UPP, you are part of a secure, dependable defined benefit pension plan. In addition to strong, matched benefits, UPP offers a range of features, including:
1. Career flexibility
If eligible, you can move seamlessly between participating employers and continue to build your pension.
2. Longevity
You don’t have to worry about outliving your UPP pension—it’s paid for life.
3. Inflation protection1
A valuable feature that increases the amount of your monthly pension income in retirement to help keep pace with the rising cost of living. It extends to your spousal survivor pension as well, if applicable.
4. Survivor benefits
These valuable benefits are designed to help provide for your loved ones when you pass away, whether before or after retirement.
5. Joint governance and oversight
Our joint governance model puts members’ interests first, with a strong commitment to transparency and accountability.
6. Professional investment management
Our investment teams have secured significant fee savings, enhanced transparency and control, and expanded exposure in target areas to strengthen the portfolio over the long term.
7. Reliable service experience
Receive dedicated support for the moments that matter from our team of in-house pension experts, and access secure, self-serve portals.
8. Cost-effective, member-focused design
UPP is designed for the benefit of members—not shareholders. That means you don’t pay the management fees and commissions often charged by retail retirement savings products like RRSPs or mutual funds.
9. Stable, worry-free retirement income
Since your pension is based on a formula, you’ll know what your guaranteed monthly income will be before you retire. You don’t need to manage individual investments, track markets, or make complex financial decisions. Your pension is professionally managed and designed to deliver a predictable and secure income for life—giving you one less thing to worry about as you plan for retirement.
Supporting your pension journey
UPP’s defined benefit pension plan is designed to provide you with a strong foundation for your retirement income, with predictable payments, expert management, and features that support you at every stage of your pension journey. Whether you’re early in your career or approaching retirement, understanding the value of your DB pension can help you make important decisions about your future. To learn more, explore the Members section of our website.
Additional Resources
If you’re looking for more information about UPP’s defined benefit plan and how a DB plan can work for you, visit the following pages to learn more:
Questions? UPP can help!
UPP’s pension experts can help you explore your options and support you through these important life decisions. If you have any questions about your pension, contact UPP Member Services to connect with a pension expert. Here’s how you can reach them:
Phone: 1-833-627-7877, Monday to Friday, 8:30 am to 5:00 pm, ET.
Online: Secure Messaging using the myUPP Member Portal
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1-833-627-7877
Monday to Friday, 8:30 am to 5:00 pm, ET. - Secure Messaging using the myUPP Member Portal
- © 2025 University Pension Plan