About the UPP

UPP at a glance

Details of the UPP continue to be negotiated. The following is a high-level overview of the plan design.


Pensions
  • Pension amounts are pre-defined based on a formula that uses earnings and service
Governance
  • Pension benefit terms and contribution levels are determined by a Sponsor Board with equal representation from both plan members and employers
  • Plan administration subject to oversight by a Board of Trustees with equal representation from both plan members and employers
  • Decision-making is shared
Changes to future UPP Benefits
  • Sponsor Board approves changes based on the agreement by both plan members and employers (each acting as one group)
Contributions
  • Contributions are set by Sponsor Board based on funding need
  • Following the transition period, employee and employer both contribute (typically 50-50) to plan costs
Deficits & surpluses
  • Plan is subject to going-concern funding rules, but expected to be exempt from solvency funding
Pensions transferred into the UPP :
  • Each university remains responsible for funding pensions transferred into the UPP for a set transition period
Pensions earned in the UPP :
  • Shared responsibility for shortfalls – future contributions could be increased for active employees and/or future pension benefits could be decreased for active employees
  • Shared ownership of surpluses
Plan administration
  • Board of Trustees is responsible for the administration of the UPP and its pension fund
  • Day-to-day operations is delegated to a third party
Plan investments
  • Guided by investment policy
  • Defined long-term return objective, with risk levels deemed appropriate by the Board of Trustees