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York University’s Annual Pension Plan Meeting

York University’s Annual Pension Plan Meeting. April 24, 2009. Pension Statement. Mandatory that a statement is produced for each member every year. Statement estimates pension at normal retirement date. Assumes you will receive a 3% salary increase each year before retirement.

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York University’s Annual Pension Plan Meeting

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  1. York University’s Annual Pension Plan Meeting April 24, 2009

  2. Pension Statement • Mandatory that a statement is produced for each member every year. • Statement estimates pension at normal retirement date. • Assumes you will receive a 3% salary increase each year before retirement. • Assumes the plan will earn 6% rate of return each year before retirement.

  3. 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, TIMES Credited service

  4. YMPE Year’s Maximum Pensionable Earnings • Canada Revenue Agency establishes this figure each year • 2009 = $46,300 • 2008 = $44,900 • 2007 = $43,700 • 2006 = $42,100 • 2005 = $41,100

  5. 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%

  6. December 31, 2008 Statement

  7. Comparing 2007 to 2008

  8. Other comparisons

  9. Other comparisons

  10. Other comparisons

  11. Other comparisons

  12. Canada Revenue Agency (CRA) • CRA limits the amount that can be contributed to a pension plan or RRSP • 2009 limit is $22,000 therefore anyone earning more than $192,199 their pension contributions will stop when $22,000 is reached • CRA also limits the amount of pension that can be earned in a MGP • 2009 limit is $2,444.44 per year of credited service (to a maximum of 35 years of service)

  13. When should I retire? • With the end of mandatory retirement it is up to the individual to decide when the best time is to retire • The 2008 ROR will likely influence the decision of some individuals • An individual may continue to contribute to the pension plan until age 71 and then must begin receiving their pension, as per the Income Tax Act

  14. York University Retirement Planner (YURP) • YURP will be updated with the 2008 year end data once the pension statements have been distributed. To access YURP go to: http://www.yorku.ca/hr/services/employees/yurp.html User: type Employee # Password: If first time click: Forgot your password

  15. 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

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