During the spring and summer of 2018, a working group comprised of representatives of Queen's University, University of Guelph, University of Toronto, the faculty associations, USW and non-unionized employees met to consider the composition and attributes of the Board of Trustees of the UPP. During these collaborative meetings, the working group heard presentations from, and engaged in discussion with, representatives from five of the existing JSPPs in Ontario. The purpose of the discussion was to learn about both the successes and the challenges experienced in the governance of these existing JSPPs.
Following these meetings, a Report was prepared by the working group. The working group Report was the basis upon which the parties subsequently came to an agreement with respect to the composition and attributes of the UPP Board of Trustees that is intended to be a leader in pension plan governance. The details of this agreement are posted in Schedule V to the Milestones Agreement between the parties, posted here.
The Administrator of the UPP will be a Board of Trustees, and the trustees would be appointed by the Employer Sponsor and Employee Sponsor, with a numerically independent Chair of the Board of Trustees appointed jointly by the two Sponsors. The trustees would be jointly responsible for making decisions about the day-to-day administration of the UPP and the investment of the assets of the UPP.
The Board of Trustees would consist of 14 trustees, including an independent chairperson appointed by the Joint Sponsors. Six trustees would be appointed by the Employer Sponsor, six trustees would be appointed by the Employee Sponsor, and one trustee would be nominated by the non-unionized members pursuant to a pre-determined process. The non-unionized member-nominated trustee would not have a tie-breaking or tie-making vote.
Key Features of the UPP Board of Trustees:
- Legal Administrator of the UPP, responsible for making decisions about administration (including the preparation of actuarial valuations, ensuring compliance with all applicable laws, investment of the UPP assets, and payment of pension benefits to members
- Will consist of 6 trustees appointed by the universities; 6 trustees appointed by the faculty associations and unions; and 1 trustee nominated by the non-unionized employees (without a tie breaking vote);
- Independent Chair of the Board of Trustees to be appointed jointly by the two Sponsors (first seven years);
- 14 Board members in total (first seven years).