2024 Pensioner Increase – Salaried Pension Plans
2024 Pensioner Increase – Salaried Pension Plans
January 1, 2024
McMaster University Salaried Pension Plans (the “Plans”)
McMaster’s Salaried Pension Plans allow for an annual pension increase when the five-year average return on the fund exceeds 4.5% (5% for Unifor Local 5555 members hired on or after May 1, 2010). This increase can be up to 100% of the Consumer Price Index (CPI). If the excess return is larger than the current CPI increase, the amount can be used to further top-up the previous three years of increase to bring them up to 100% of CPI (known as a supplemental pension increase).
We are pleased to announce that pensions in pay as of January 1, 2024, will be increased in respect of any retiree who was receiving a pension on June 30, 2023. There are different increases for retirees hired on or after May 1, 2010 who retired as a Unifor Local 5555 Unit 1 Member (“New Unifor Retirees”) and all other members of the Salaried Plan (“all other retirees”). The details of the increases are set out below.
Annual Pension Increase (0.85%) for Salaried Plan Retirees (except New Unifor Retirees)
The “Annual Pension Increase” for January 1, 2024, calculated in accordance with the Plan text and reviewed by our external auditors, resulted in an increase of 0.85% for all eligible Salaried Plan retirees, except New Unifor Retirees. This increase impacts any member who will receive a pension from the Plan on January 1, 2024 and who was also in receipt of a pension on June 30, 2023. Those who retired between July 1, 2022 and June 30, 2023, will receive a pro-rated increase.
For further details on the calculation of the pensioner increase, please refer to the Audit Statement posted here.
Annual Pension Increase (0.35%) for New Unifor Retirees
The “Annual Pension Increase” for January 1, 2024, calculated in accordance with the Plan text and reviewed by our external auditors, resulted in an increase of 0.35% for all eligible Salaried Plan retirees who are New Unifor Retirees. This impacts any member who will receive a pension from the Plan on January 1, 2024 and who was also in receipt of a pension on June 30, 2023. Those who retired between July 1, 2022 and June 30, 2023, will receive a pro-rated increase.
For further details on the calculation of the pensioner increase, please refer to the Audit Statement posted here.
Supplementary Pension Increase
The Supplementary Pension Increase provision of the Plans provides for increases in pension if the following two conditions are met:
(1) The rate of return in excess of 4.5% (5.0% for Unifor Local 5555 members hired on or after May 1, 2010) exceeds the CPI; and
(2) The cumulative increase from Annual Pension Increases and Supplementary Pension Increases was less than the cumulative increase based solely on CPI Formula increases in the previous 3 years.
Since both conditions were not met, there will not be a supplementary increase for January 2024.
Please refer to Section 5.08 and 5.09 of the Pension Plan text for specific details regarding the calculations for the Annual Pension Increase and Supplementary Pension Increase.
The information provided on this website is intended to summarize in plain language, the McMaster University Contributory Pension Plans and their respective audited financial statements. For an exact and complete description of the Plan and the financial statements, consult the Plan Text and audited financial statements. In cases where the information provided on this website differs from that contained in the Plan text and audited financial statements, the Plan text and audited financial statements will govern.
Original Pension Plan (Retirees), Pension Plan 2000 (Reitrees)