This is a closed pension plan as of Jan. 1, 1999.
The Plan was established effective June 30, 1965, to provide certain employees of the University with pension and related benefits in respect of their employment with the University. The Plan has been amended as required from time to time to comply with changes to the Pension Benefits Act and the Income Tax Act, to reflect improvements in the administration and governance of the Plan, and to provide enhanced benefits to the Plan Members.
Effective January 1, 1999, the University established the University of Saskatchewan 1999 Academic Pension Plan (the “1999 Plan”), covering all employees who immediately prior to this date were eligible to participate under the Plan and inactive members who were not Pensioners at that date. As a result of the establishment of the 1999 Plan, the Pension Plan for the Academic Employees of the University of Saskatchewan, 1974, has as its purpose the governing of the continued payment of benefits to individuals who on January 1, 1999:
- had previously retired from the University and were in receipt of lifetime pensions from the Plan;
- were beneficiaries of deceased pensioners and who were receiving periodic payments from the Plan; and
- were joint annuitants of deceased pensioners and in receipt of periodic payments from the Plan.
The effective date of this restated Plan document is January 1, 2004 and is intended to focus on those rights and provisions that are relevant to the Plan’s membership from this date. However, no provision set forth in this document shall serve in any manner to diminish any rights or benefits payable under the terms of the Plan prior to its restatement.
Effective January 1, 1999, the Plan was closed and no additional individuals were permitted to become Members except for:
- Joint Annuitants of Pensioners who died after January 1, 1999; and
- Beneficiaries of Pensioners who died after January 1, 1999.
Explanation to Members
Within 90 days after any amendment to the Plan, the University shall provide an explanation of the amendment to each Member affected by the amendment.
A copy of this Plan text, any trust deed or agreement, insurance contract, bylaw, resolution, or investment contract relating to the Plan may be examined by a Member at any reasonable time at such offices as are designated by the University.
A Member may, once in each calendar year, either personally or by an agent authorized in writing, examine the documents filed with the Superintendent of Pensions and order, in writing, a photocopy of any such documents.
In the event that a Member’s benefit is to be divided pursuant to a court order or a written interspousal agreement, upon receiving authorization from the Member, the pertinent information shall be provided to the Member, the Member’s Spouse or the solicitor of any of them. The Member shall be notified of the information provided to the Spouse or the solicitor.
Contribution by the University
The University shall contribute amounts to the Fund from time to time as may be recommended by the Actuary.
Payments to the Custodian
From time to time but not less frequently than required by The Pension Benefits Act the University shall remit to the Custodian any contributions it is required to make in accordance with Section 1.
No contribution or gift may be made to or under this Plan except as provided herein.
Return of Contributions
Contributions shall be returned to the contributor if it found that the contribution maximums as prescribed by the Income Tax Act have been exceeded and the Plan’s registration could be revoked.
Payment of Benefits
Benefits paid under the Plan in respect of a given Member are determined based on the periodic amounts in payment as at January 1, 1999 to the Member, or the Pensioner to which the Member relates as the case may be, updated from time to time with adjustments in respect of:
- increases in cost-of-living;
- the death of the Pensioner to which the Member relates in accordance with the form of payment elected by the Pensioner at the time of his or her pension commencement;
- the death of the Member if the given Member is not a Pensioner; and
- the attainment of age 65 by the Pensioner to which the given Member relates where such Pensioner elected a form of pension providing increased payments until the anticipated commencement of his or her Canada Pension Plan benefits
Frequency of Benefit Payments
Except where otherwise provided under the Plan, benefits under the Plan shall be payable monthly on the last business day of the month.
Duration of Periodic Payments
Subject to Section 4 of Article V of the Plan document the duration of benefit payments that are made by way of periodic payments shall be determined in accordance with the following:
- lifetime pension payments to a given Pensioner shall continue to be paid up to and including the month in which such Pensioner’s death occurs;
- periodic payments to a given Pensioner in respect of a form of pension that provides for increased payments until the anticipated commencement of Canada Pension Plan benefits, shall continue to be paid while the Pensioner is alive up to and including the month in which the Pensioner attains age 65;
- lifetime pension payments to a given Joint Annuitant shall be paid commencing from the month first following the death of the Pensioner to which the Joint University of Saskatchewan Academic Pension Plan 7 Annuitant relates up to and including the month in which the Joint Annuitant’s death occurs;
- periodic payments to a given Beneficiary shall be paid commencing from the month first following the death of the Pensioner to which the Beneficiary relates up to and including the month in which the payment guarantee elected by the Pensioner expires;
- In the event a Pensioner has not designated a Beneficiary in accordance with Article VI (BENEFICIARIES) or if the person so designated should not be living, the present value of the periodic payments that would normally be payable to a Beneficiary upon the Pensioner’s death shall be paid by way of a lump sum settlement to the Pensioner’s estate. Such lump sum payment shall be determined in accordance with the Plan Factors and shall be in lieu of all other benefits payable under the Plan.
- In the event that periodic payments are payable to a Beneficiary, upon the death of the Pensioner, the Beneficiary may make a one-time irrevocable election to receive a lump sum payment equal to the present value of the periodic payments owing. Such lump sum payment shall be determined in accordance with the Plan Factors and shall be in lieu of all other benefits payable under the Plan.
Purchase of Annuity
Benefits shall normally be payable from the Fund. Where the Board, based on a recommendation of the University, deems it advisable to otherwise provide for payment of a Member’s benefits through the purchase of an Annuity, such purchase shall constitute full and final satisfaction of the rights of the Member and, where applicable, the Member’s Joint Annuitant, Beneficiary or estate, under the Plan.
Designation of Beneficiary
A Pensioner may designate a Beneficiary to receive any benefits payable under the Plan as a consequence of the Pensioner’s death. Such designation may be altered or revoked from time to time by the Pensioner by providing written notification to the University.
Rights on Discontinuance of Plan
The University hopes and expects to continue the Plan indefinitely but reserves the right to change, modify or discontinue the Plan at any time.
- If the Plan is terminated, any allocation of assets to the Members must comply with the following conditions:
- assets must be allocated first to provide for benefits equal to the value of contributions, with interest, made by and transferred from another plan with respect to members and former members;
- assets not allocated pursuant to clause (a) must be allocated to provide for accrued benefits with respect to which:
- no unfunded liability was established; or
- where an unfunded liability was established, the liability has been amortized at the date of the termination of the plan; and
- assets not allocated pursuant to clauses (a) and (b) must be allocated to provide for accrued benefits with respect to which unfunded liabilities have not been amortized at the date of the termination of the plan.
- An unfunded liability that has not been amortized at the date of the termination has the effect of reducing the benefits for employment that led to the establishment of the unfunded liability, proportionate to the extent to which those benefits remain unfunded.
- Each unfunded liability is to be dealt with separately and applied only to the benefits with respect to which it was established.
If, after allocating the Fund assets in accordance with Section 2 of Article XI, assets remain in the Fund, such assets shall be refunded to the University if the consent of the Superintendent of Pensions for Saskatchewan is obtained.
If the funds remaining are not sufficient to provide full benefits under the Plan, the funds available shall be allocated to each Member in the same proportion that the actuarial value of the full benefit for each Member bears to the total actuarial value of full benefits for all Members.
Notwithstanding the aforesaid, the Plan will be terminated in accordance with the requirements of The Pension Benefits Act and the legislation and regulations of any other competent jurisdiction.
Non-commutation of Benefits
A Member’s benefit entitlements under this Plan are not capable of assignment, alienation, charge, anticipation, surrender, commutation or being given as security and do not confer upon any Member, personal representative or dependent, or any other person, any right or interest in such benefits capable of being assigned, alienated, charged, anticipated, surrendered, commuted or given as security, except in instances involving:
- commutations in accordance with Section 4 of Article V (PAYMENT OF PENSIONS);
- payments to incompetents or minors under Article X (ADMINISTRATION AND PROCEDURES);
- a reduction in benefits to avoid the revocation of the registration of the Plan; and for greater certainty, for the purposes of this section, assignment does not include:
- assignment pursuant to a decree, order or judgment of a competent tribunal or a written agreement in settlement of rights arising out of a marriage or other conjugal relationship between an individual and the individual’s Spouse or former Spouse, on or after the breakdown of their marriage or other conjugal relationship; or
- assignment by the legal representative of a deceased individual on the distribution of the individual’s estate; and
Division on Relationship Breakdown
- Notwithstanding any other provision of this Plan, where, in respect of a given Pensioner:
- a court has made an order for the division of matrimonial property pursuant to the Family Property Act of Saskatchewan in respect of the Pensioner; or
the Pensioner and the Pensioner’s Spouse have entered into an agreement to divide their matrimonial property that is an interspousal agreement within the meaning of the Family Property Act of Saskatchewan; the University shall divide a benefit to which the Pensioner is entitled, in accordance with such order or agreement by transferring the value of the Spouse’s portion to the Spouse’s registered retirement savings plan or registered retirement income fund where such vehicles meet the prescribed locking-in requirements of the Pension Benefits Act.
- The maximum amount allocated to the Spouse and the residual benefit allocated to the Pensioner shall be determined in accordance with the Pension Benefits Act.
Notice to Pensioner
- Except where an order or agreement mentioned in paragraph (a) of Section 2 of this Article has been filed with the University by the Pensioner and his or her Spouse, the university shall give a notice in writing to the Pensioner once an order or agreement has been filed.
- Unless the University receives a notice in writing within 30 days of providing the notice mentioned in paragraph (a) that the Pensioner objects to the division of the pension on the grounds that:
- the order or agreement has been varied or is of no force or effect;
- the terms of the order or agreement have been or are being satisfied by other means; or
- that proceedings have been commenced in a court of competent jurisdiction in Canada to appeal or review the order or to challenge the term of the agreement; the university shall comply with the order or agreement in accordance with Section 2.
- A Pensioner who submits a notice of objection pursuant to paragraph (b) shall include with the notice documentary evidence to establish the grounds for objection.
- Where a notice of objection is received by the university pursuant to paragraph (b) of this Section, the university shall apply to Her Majesty’s Court of Queen’s Bench for Saskatchewan for direction.
Enforcement of Maintenance Orders
Notwithstanding any provision of this Plan, pension benefits that are payable to a Member are subject to garnishment pursuant to The Enforcement of Maintenance Orders Act for the purposes of enforcing a maintenance order as defined in that Act.
Fund, Custodians, Investment Managers and Accounts
The Fund shall be placed in the custodianship of the Custodian who shall administer the Fund in accordance with the terms and provisions of an agreement executed with the Board and shall invest the Fund in accordance with the instructions of the Investment Manager.
The investment management of the Fund shall be the responsibility of one or more Investment Managers who shall instruct the Custodian as to how the Fund will be invested, in accordance with the terms and provisions of agreements executed between each Investment Manager and the Board and in accordance with any investment policy as may be designated by the Board from time to time. In the event that there is more than one Investment Manager, the Board shall determine the portion of the Fund which will be the responsibility of each Investment Manager.
All contributions made by the University after the Effective Date in accordance with the terms of the Plan shall be paid into the Fund.
All benefits under the provisions of the Plan shall normally be provided directly from the Fund in the form of a periodic or lump sum amount, subject to the terms of the Plan and the provisions of the Income Tax Act. However, the University may, on the advice of the Actuary, recommend to the Board that some or all of the pension benefits be provided by an Annuity or Annuities purchased from an Insurer or Insurers.
The investments of the Fund shall be limited to the securities and loans prescribed by The Pension Benefits Act and the Regulations thereunder and the statutory or regulatory requirements of any other competent jurisdiction.
The Fund shall be chargeable with the fees of the Custodian and the Investment Managers, with any expenses incurred by the Custodian and the Investment Managers in respect of the Plan and with any expenses in respect of the Plan reasonably and properly incurred by the University and by the University in the administration and operation of the Plan and Fund.
The Custodian shall at all times keep or cause to be kept adequate accounts of the Fund. Such accounts shall be maintained on a calendar year basis.
The Fund shall have a fiscal year ending December 31st.
The Fund shall not borrow money except where:
- the borrowing is for less than 90 days;
- the borrowing is not part of a series of loans and repayments; and
- none of the assets of the plan are given as security (except where the borrowing is necessary to pay current benefits or buy Annuities without a distress sale); or where
- the money is borrowed for the purpose of acquiring a given real property that is being acquired for the purpose of producing income;
- the aggregate of all borrowing and indebtedness incurred as a consequence of the acquisition of the given real property does not exceed the cost of the property; and
- none of the property that is held in connection with the Plan, other than the given real property, is given as security.
Administration and Procedures
The Board shall be the administrator of the Plan and shall be responsible for all matters relating to the administration of the Plan and may delegate such matters as it deems appropriate to be performed by one or more agents.
Notwithstanding anything in the Plan to the contrary, no cash settlement shall be paid under the terms of the Plan where such payment would be contrary to the provisions of The Pension Benefits Act or the statutory or regulatory requirements of any other competent jurisdiction.
Where an amount determined in connection with the operations and administration of the Plan is based on assumptions and/or actuarial principles, such amount shall be determined using reasonable assumptions and in accordance with generally accepted actuarial principles.
Wherever the Plan permits the transfer to another registered vehicle of a lump sum in satisfaction of all or part of a Member’s rights to and interest in benefits under the Plan or in lieu of such benefits, the transfer shall be:
- a single, lump sum amount;
- direct plan-to-plan; and
- in an amount which is not greater than the amount prescribed by the Income Tax Act.
All records and files pertaining to the operations of the Plan and the Fund shall be retained for at least seven (7) years after:
- in the case of an agreement, the expiry of the agreement; and
- in the case of other records, the date of the last transaction to which the records relate.
No Member or former Member shall have any recourse under any provisions of this Plan against any past, present or future governor, officer, or employee of the University, or against the Retiree Pension Committee and all such governors, officers, and employees of the University, and the Retiree Pension Committee shall be free from all liability hereunder as a condition hereof.
The Plan shall not give rise to any claim by anyone against the University for damages for any cause whatsoever.
All contributions to the Plan and all benefits under the Plan shall be payable in the lawful currency of Canada.
In case the age of the Member is found to have been incorrectly stated the Retiree Pension Committee is empowered to make or cause to be made such adjustments respecting such Member, for the purposes of the Plan, as the Retiree Pension Committee shall deem equitable.
Any surplus which may arise from the operation of the Plan which is not required to meet the actuarial liabilities existing thereunder shall accumulate as a reserve for contingencies.
Notwithstanding Section 5 of this Article, if the Retiree Pension Committee, with the advice of the Actuary, is of the opinion that an adequate reserve for contingencies has been provided, the Retiree Pension Committee may declare, upon approval by the Board, that any surplus exceeding such adequate reserve for contingencies shall be used to provide Bonus Pensions in respect of all Members as determined in accordance with Section 7 of this Article and subject to the provisions of Section 8 of this Article.
- The amount of such Bonus Pensions for a given Member declared by the Retiree Pension Committee in accordance with Section 6 of this Article shall be calculated in accordance with the following:
- a Bonus Pension must relate to a given Increase Year;
- the percentage increase in a Member’s pension resulting from the Bonus Pension along with the cumulative percentage increases from prior Bonus Pensions granted in respect of the Member cannot exceed the Member’s Cumulative CPI Increase at the Increase Year;
- a Bonus Pension cannot be granted in respect of an Increase Year until the cumulative percentage increases from prior Bonus Pensions equal the Cumulative CPI Increase immediately prior to the Increase Year for each Member;
- in the event:
- a Bonus Pension is declared in respect of a given Increase Year; and
- the Bonus Pension so declared is not sufficient to result in a percentage increase that equals the increase in the CPI for the Increase Year for all Members; then the Bonus Pension granted to each Member shall be determined such that each Member receives an equal percentage increase to the extent that such an increase has not already been contractually provided under the Plan; and
- Bonus Pensions cannot be paid retroactively prior to their being declared by the Retiree Pension Committee and being approved by the Board.
A Bonus Pension calculated in accordance with Section 7 of this Article shall be paid:
- monthly commencing on the January 1 first following the approval of such Bonus Pension by the Board in accordance with Section 6 of this Article; and
- in accordance with the form of payment elected by the Pensioner to which the Bonus Pension relates.
This instrument is subject to initial and continuing approval of the Plan by all taxing authorities now or hereafter imposing on the University taxes which may be affected by contributions of the University.
- Notwithstanding anything herein contained, but subject to Section 2 of this Article,
- the Plan may be amended at any time and from time to time by the Board in consultation with the Retiree Pension Committee and all such amendments shall be binding on the University and on every Member.
- Notice of every such amendment shall forthwith be given to the Custodian. If the amendment directly or indirectly affects the benefits due to the Members, notice thereof shall be given to the Members.
No such amendment shall adversely affect the right of a Pensioner to continue to receive his or her pension under the Plan at the date of such amendment or reduce the benefits which any Member had accrued to the date of the amendment.
Notwithstanding anything else contained herein, the Plan may be amended at any time to reduce the benefits to be provided so as to avoid revocation of the Plan’s registration.
Beneficiary: The person you designate to receive death benefits from the Plan after you die.
Canada Revenue Agency Limits: USask pension plans are Registered Pension Plans, governed by pension legislation and subject to the rules of The Federal Income Tax Act. As a result, there are limits to the amount you can contribute. These limits are:
- 2018: $26,500
- 2019: $27,230
- 2020: $27,830
- 2021: $29,210
- 2022: $30,780
Canada Pension Plan (CPP): The Canada Pension Plan is a federal government program based on earnings-related contributions. It is indexed annually based on the change in the Consumer Price Index. Benefits start when you reach age 65 but may begin as early as age 60. CPP also includes other benefits: a death benefit, a survivors’ pension, and disability benefits before you retire.
Continuous Employment: Continuous Employment is your most recent, uninterrupted period of employment with the University as a permanent employee. Continuous Employment is not interrupted during periods of approved absence, including:
- jury duty
- authorized vacations and statutory holidays
- authorized absences (including sabbatical leave and administrative leave)
- qualified disability; or
- breaks of less than six months between termination of employment and re-employment with the University, provided you have not taken a refund of the contributions.
In all other cases, Continuous Employment is interrupted by termination of employment, retirement, or failure to return to work following an approved absence or disability.
Guarantee Period: Pension payments may be guaranteed for a specific period of time. If you die within this time, your pension payments are guaranteed to continue to your Spouse, beneficiary, or estate until the end of this specific period.
Life Annuity: A lifetime pension purchased through a contract with an insurance company. You receive monthly payments, the amount of which will vary depending on the type of annuity you select, the interest rates in effect when you sign the contract, and your age and your Spouse’s age when the annuity payments begin. The higher the interest rates and the older you are when payments begin, the higher the pension you will receive.
Locked-in Retirement Account (LIRA): Upon termination, you can transfer your pension plan benefits to a Locked-in Retirement Account (LIRA). A LIRA is an investment account in which you can keep your money invested. You cannot make withdrawals from your LIRA. When you reach the age of 55, and any time thereafter until you turn 71, you can use your LIRA to purchase a Prescribed Registered Retirement Income Fund (PRRIF) or a Life Annuity. You must transfer your LIRA to a PRRIF, or use it to purchase a Life Annuity before December 31 of the year in which you turn 71.
Old Age Security (OAS): Old Age Security is a government benefit that any person 65 or older is entitled to receive after meeting certain minimum residency requirements.
Pension Adjustment (PA): The value Canada Revenue Agency assigns to your benefit under the Pension Plan. Your PA will reduce your RRSP contribution room.
Pensionable Earnings: Pensionable Earnings refers to your University salary. It excludes any other earnings such as honorariums, fees, and summer session payments, and is subject to a yearly maximum. For members of the clinical medical staff, Pensionable Earnings is the academic component of the University salary only.
Postponed Retirement: Retirement date after your Normal Retirement Date.
Prescribed Registered Retirement Income Fund (PRRIF): If you are 55 years of age or older, upon retirement you can transfer your pension plan benefits to a PRRIF. A PRRIF allows you to keep your money invested but there is a minimum amount that must be withdrawn each year. There is no maximum withdrawal amount. Your spouse, if you have one, must sign a release in order for you to transfer your benefits to a Prescribed RRIF.
Registered Amount: Money is viewed as registered if the amount falls within Income Tax Regulations. It can be transferred on a tax-deferred basis to a registered savings vehicle. Investment income is tax-sheltered. Any withdrawals are taxable.
Registered Retirement Savings Plan (RRSP): A tax-deferred retirement savings vehicle. Contributions are tax-deferred up to Canada Revenue Agency limits. Investment income is tax-deferred. Any withdrawals are taxable.
Spouse: A person who is either:
- married to a member,or
- if a member is not married, a person with whom the member is cohabiting in a conjugal relationship at the relevant time and who has been cohabiting in a conjugal relationship continuously with the member as his or her spouse for at least one year prior to the relevant time.
Year’s Maximum Pensionable Earnings (YMPE): The earnings base used to determine Canada Pension Plan contributions and benefits. The level adjusts annually to keep pace with average wage increases in Canada.
- plan documents
- retirement information
- beneficiary changes