Understanding the
Pension Plan for the Employees
of Concordia University
Pension Plan for the Employees of
Concordia University
• Pension Services
– Senior Advisor
– Pension Assistant
– Pension & Benefits Clerk
Pension Plan for the Employees of
Concordia University
• Administration of the Pension Plan:
– Communication of benefits
– Taxation reporting
– Enrolment and eligibility
– Change of beneficiary
– Status change
Pension Plan for the Employees of
Concordia University
• Our partners:
– Morneau Sheppell → actuaries & consultants
– CIBC → Pension fund custodian
– Pension Committee
– Office of the Treasurer
Pension Plan for the Employees of
Concordia University
• Pension Plan for the Employees of
Concordia University is one plan
• Administered under the laws of the Régie
des rentes du Québec’s Supplemental
Pension Plans Act
Defined Benefit vs. Defined Contribution
• Defined Benefit Plan
– benefits are defined ahead of time based on a set
formula using your pensionable earnings and years of
credited service;
– the employer bears the risk of a shortfall in investment
results.
• Defined Contribution Plan
– benefits are based on the contributions made to the
plan and the investment earnings on the contributions;
– the employee bears this risk.
Eligibility and enrolment
• Non full-time, permanent employees must meet one of
the following qualifications in the previous calendar
year:
– a minimum of 700 hours worked; or
– remuneration equal to at least 35% of the YMPE.
• Automatically enroll in the Pension Plan as a NonContributory Member effective January 1st of following
year.
• Changing contribution status
– Can be changed annually effective January 1st;
– must submit request to the pension services by the end of
November of the preceding calendar year.
Pension Formula
Contributory formula
Non-Contributory formula
For each year of credited service prior to
January 1, 2008:
Retirement
at age 65
2% of your Final Average Earnings
LESS
0.5% of the lesser of the Final Average
YMPE and
your Final Average Earnings
1.1% of your Final Average Earnings
LESS
0.25% of the lesser of the Final Average
YMPE and
your Final Average Earnings
For each year of credited service from
January 1, 2008:
1% of your Final Average Earnings
LESS
0.25% of the lesser of the Final Average
YMPE and
your Final Average Earnings
Pension Formula
Contributory formula
Non-Contributory formula
For each year of credited service prior to
January 1, 2008:
Pension payable before age 65
1.1% of your Final Average Earnings
Retirement
before age
65
Pension payable before age 65
2% of your Final Average Earnings
Pension payable at age 65
See formula on previous slide
Pension payable at age 65
See formula on previous slide
For each year of credited service from
January 1, 2008:
Pension payable before age 65
1% of your Final Average Earnings
Pension payable at age 65
See formula on previous slide
Designating a beneficiary
• If you have a spouse
– your surviving spouse is automatically your
beneficiary;
– you may designate someone else, if your spouse
waives his or her right to benefits;
– waiver may be revoked at any time before pension
payments begin;
– waiver does not take away the spouse's right to a
potential division of the accumulated amounts in the
event of a separation or divorce.
Designating a beneficiary
• If you do not have a spouse
– you may designate anyone you wish.
• If there is no valid beneficiary, your estate
will receive the survivor benefits.
• Changing beneficiary
– simply complete the beneficiary designation form and submit it to
Pension Services.
Forms of pension payment
How it works
Lifetime pension with a Joint and survivor
guaranteed period
pension (available only
if you have a spouse)
You receive a pension...
For your lifetime
For your lifetime
And your pension is
guaranteed for...
5, 10 or 15 years, whichever
you choose
5 or 10 years, depending on
the joint and survivor pension
you choose
Which means that, if you die
before the chosen guaranteed
period ends, the plan will
pay...
The balance of the
guaranteed period in a lump
sum
50%, 60%, 66 2/3%, 75% or
100% of your pension,
depending on the elected
percentage
No more benefits in the event
of your death
50%, 60%, 66 2/3%, 75% or
100% of your pension,
depending on the joint and
survivor percentage elected.
And after the guaranteed
period, the plan will pay ...
Life Events
• If you leave Concordia before age 55:
– You will be entitled to a deferred retirement
pension payable at age 65, or
– You can transfer the value of your pension to:
• a prescribed retirement savings arrangement;
• another registered pension plan, if that plan
accepts it; or
• an insurance company to purchase a life annuity.
Life Events
• If you leave Concordia after age 55:
– You will be considered to be retiring from the
University. In this case, you will be entitled to
an immediate lifetime pension.
• If you die before retirement :
– Your beneficiary will receive the value of your
pension in a lump sum.
Life Events
• If you die during retirement :
– Benefits, if any, will be payable according to
the form of payment chosen upon retirement.
Government Plans
• Quebec Pension Plan (QPP)
– Lifetime retirement income, based on age and
income.
– Payable at age 65
– Payable at age 60 with reduction and must
meet eligibility requirements
– www.rrq.gouv.qc.ca
Government Plans
• Old Age Security (OAS)
– Lifetime flat-rate pension
– Payable at age 65
– Clawed back if net income exceeds a certain
level ($67,668 in 2011)
– www.servicecanada.gc.ca/eng/isp/oas/oastoc.shtml
Useful information
• Annual Pension Statement
• Annual Information meeting
• HR website
– www.concordia.ca/hr/
• Pension@ccess website
– concordia.pension.hroffice.com
Questions?