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How to Read your York University
Pension Plan Statement
Presented by the Pension & Benefits office
Pension Statement
Mandatory that a statement is produced for each member
every year.
Statement estimates pension at normal retirement date.
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Income Tax Act (ITA)
ITA limits the amount that can be contributed to a
pension plan or RRSP
2010 limit is $22,450 therefore anyone earning more
than $ 193,818.50 their pension contributions will
stop when $22,450 is reached
ITA also limits the amount of pension that can be
earned in a Defined Benefit, Minimum Guarantee
Pension Plan
2009 limit is $ 2,494.44 per year of credited service (to
a maximum of 35 years of service)
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December 31, 2009 Pension Statements
The University does not know what the money
purchase contribution limit or the minimum
guarantee benefit limit will be moving forward.
The December 31, 2009 pension statement uses
the limits that are currently known.
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December 31, 2009 Pension Statements
The pension statement documents the employee’s key
pension information including employee and
employer contributions along with credited service.
The pension statement is an estimate only and is
intended to present a general guide for retirement
planning.
For those members affected by the ITA limits they have
seen a decrease in the minimum guarantee figure.
The benefit formula/calculation has not changed.
The member will receive the pension they are
entitled to at their retirement.
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FAE and MGP formula
Final Average Earnings - York uses a five year
highest earnings – the five years do not have to
be consecutive
1.4% of FAE up to the average YMPE,
PLUS
1.9% of FAE above the average YMPE,
MULTIPLIED BY
Credited service
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Credited Service vs. Continuous
Service
Credited Service – The total number of years of
pension plan membership. You can not earn
service if contributions by you or the University
are not maintained at the full rate for each
month in the calendar year.
Continuous Service – Your unbroken service
with the University including vacation,
authorized sick leave, and authorized leaves of
absence.
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MPC
Money Purchase Component
Employee Contributions, PLUS
Employer Contributions, PLUS
Rate of Return (can be positive or negative)
Employee contributions are:
4.5% up to the YMPE, PLUS
6% above the YMPE
Employer contributions are the same as above
PLUS an additional 3%
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YMPE
Year’s Maximum Pensionable Earnings
Canada Revenue Agency establishes this figure each year
2010 = $47,200
2009 = $46,300
2008 = $44,900
2007 = $43,700
2006 = $42,100
2005 = $41,100
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Non Reduction Reserve
The Employer contributes an additional 3% in
pension contributions to your pension plan
account
At retirement, if you elect to take a monthly
pension this 3% is set aside to help fund the
reserve so your pension does not reduce in
your hands
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Special Transferred Contributions
If pension funds are transferred from another
registered pension plan without service from
that pension plan the funds will show in this
line
These funds are affected by mortality table
changes and the rate of return
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Additional Voluntary Contributions (AVCs)
The Pension & Benefits office can determine how
much room you have to make AVCs into the York
pension plan
AVCs are like making RRSP contributions but you
receive the tax advantage immediately
You may transfer non-locked RRSP funds into the York
pension plan and they would appear in this row
AVCs/transferred in non-locked RRSP funds are
affected by the mortality table and the rate of return
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Stock Market & the Pension Plan
The 2010 annualized rate of return to the end of August
was 2.02%
The 2009 rate of return for the pension plan was 15.98%
The 2008 rate of return for the pension plan was -19.2%
This affects the MPC portion of the pension plan only
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December 31, 2009 Pension Statements
Member Information
The information that appears in this statement is based on the University’s
records as at December 31, 2009:
Date of Birth
Date of Hire
Date Joined Pension Plan
Vested Date
Normal Retirement Date
Current Final Average Earnings
Marital Status
Spouse’s Name
Spouse’s Date of Birth
Designated Beneficiary at Statement Date
Credited Service to December 31, 2009
Current Accrued Monthly Minimum
Guaranteed Benefit
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Example 1
Pension Plan Account Balances
Balance at
01/01/2009
Money Purchase Component
Your Contributions
University Contributions
Total Contributions
Voluntary Contributions
Transferred Contributions
2009
Contributions
2009 Fund
Gain/(Loss)
15.9818%
Balance at
12/31/2009
68,701.70
70,008.59
138,710.29
2,118.86
2,182.44
4,301.30
11,131.99
11,345.42
22,477.41
81,952.55
83,536.45
165,489.00
11,154.13
200.00
1,811.88
13,166.01
0.00
0.00
0.00
0.00
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Example 1 continued…
Estimated Monthly Pension at Normal Retirement Date *
Money Purchase Component Pension
Minimum Guarantee Benefit
Supplementary Pension
2,173
1,991
0
Additional Voluntary Contributions Pension
144
Special Transferred Contributions Pension
0
Estimated Total Monthly Pension from York University
2,317
*Assumptions
The estimated monthly pension at normal retirement is based upon long term assumptions of an annual rate of fund return of 6% and
annual salary inflation of 3%. The assumptions do not in any way reflect University policy with respect to future salary adjustments.
Nor should the projections be viewed as firm forecasts of actual pension amounts payable in the future. Rather, they are intended to
present a general guide for your retirement planning. Members have access to the York University Retirement Planner (YURP) which
can be used to project future pension amounts using various assumptions.
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Example 2
Pension Plan Account Balances
Balance at
01/01/2009
Money Purchase Component
Your Contributions
University Contributions
Total Contributions
2009
Contributions
2009 Fund
Gain/(Loss)
15.9818%
Balance at
12/31/2009
1,205.91
1,242.08
2,447.99
2,616.00
2,692.51
5,306.51
383.04
394.54
777.58
4,202.95
4,329.13
8,532.08
Voluntary Contributions
0.00
0.00
0.00
0.00
Transferred Contributions
0.00
30,988.26
2,903.65
33,891.91
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Example 2 continued…
Estimated Monthly Pension at Normal Retirement Date *
Money Purchase Component Pension
Minimum Guarantee Benefit
Supplementary Pension
3,630
4,399
769
Additional Voluntary Contributions Pension
0
Special Transferred Contributions Pension
1,093
Estimated Total Monthly Pension from York University
5,492
*Assumptions
The estimated monthly pension at normal retirement is based upon long term assumptions of an annual rate of fund return of 6% and
annual salary inflation of 3%. The assumptions do not in any way reflect University policy with respect to future salary adjustments.
Nor should the projections be viewed as firm forecasts of actual pension amounts payable in the future. Rather, they are intended to
present a general guide for your retirement planning. Members have access to the York University Retirement Planner (YURP) which
can be used to project future pension amounts using various assumptions.
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Form of Pension
If single your pension statement shows a single life pension
with no guarantee
If married your pension statement shows a joint & survivor
60% with no guarantee
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YURP
To access YURP go to:
http://www.yorku.ca/hr/services/employees/yurp.html
User:
Password:
type Employee #
If first time click:
Forgot your password
Account balances are updated in approximately June each year to
reflect the prior years results. For example, in approximately June
2011 the December 31, 2010 results will show in your account.
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York University Retirement
Planner (YURP)
The YURP will have the 2010 results factored in once the
December 31, 2010 pension statements have been posted –
likely May 2011
Until then any estimates you run uses the December 31, 2009
year end data
Individuals may change the ROR assumption and salary rate
assumption
Individuals may also add RRSP funds to see the effect it will
have on the pension
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Contacting the Pension & Benefits Office
You may contact the Pension & Benefits office by phone, e-mail or make an
appointment to meet with us.
Call 416-736-2100
Last name Initial
Counsellor
Extension E-mail
A– E
Margaret Crowe
20377
G–L
Andreea Madaras 20702
[email protected]
M-R
Yvonne Rego
33912
[email protected]
F, S – Z
Peter Chakonza
20617
[email protected]
[email protected]
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