YUFA
Contract
New Pension Plan Booklet Contains Errors
30 May 02 - Recently, you will have received a 'Pension Plan Booklet' from the pension arm of Human Resources. It is YUFA's view that some important parts of the Pension Plan text are not presented clearly in the 'Booklet'.
We urge members to review the 'Booklet' in conjunction with the Pension Plan text and to contact YUFA with any questions or concerns.
One example of YUFA's concern is the interpretation presented on page 26 of the 'Booklet' which describes adjustments to the amount of pension. The pension plan provides for an increase to your pension each year if the moving four year average fund return exceeds 6%.
However, according to the Employer, if the moving four year average fund return is below 6%, although your actual pension will not be reduced, the "deficit" will be tracked (by creating a "shadow pension" amount) and future adjustments positive or negative will be applied to the reduced "shadow pension".
According to the 'Booklet', if the fund returns are low in one year, but over 6% in the next year, your actual pension will not go up in the next year, unless the "deficit is paid up", i.e. until the "shadow pension" exceeds your actual pension.
It is YUFA's position that there is a distinction between the plan text and the 'booklet text' and YUFA is acting to ensure that the plan text is followed for plan members and retirees.