Increase in Pension Contributions

-----Original Message-----
From: OPSEU Communications Department
Sent: Friday, September 18, 2009 9:18 AM
To: @All OPSEU Employees; @All OPSEU Executive Board
Subject: OPSEU Executive Board endorses pension contribution increase

OPSEU Executive Board Endorses Pension Contribution Increase



The OPSEU Executive Board has endorsed recommendations by OPSEU Pension Trust trustees that there be a one per cent increase in contributions by OPT plan members in each of the next three years.



After lengthy discussions, the Executive Board made the decision to endorse the increased contributions due to the massive global economic downturn which placed the pension fund into deficit.



The increase will protect pension payments and benefits for plan members. Maintaining this protection was a major concern for both OPT trustees and the Executive Board.



The first one per cent increase will occur on January 1, 2010, and subsequent one per cent increases will occur on January 1, 2011 and January 1, 2012.



The OPT will review the status of the plan deficit annually, and will re-evaluate the increases if the plan moves out of deficit.



Only active OPT plan members are affected by these contribution increases. The increases do not apply to current retirees and deferred plan members, who will still receive their full pension and benefit entitlements.