2022 Pensioner Increase – Salaried Pension Plans
McMaster University Salaried Pension Plan (the “Plan”)
We are pleased to announce that pensions in pay as of January 1, 2022 will be increased in respect of any retiree who was receiving a pension on June 30, 2021. There are different calculations 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”). This year, both calculations resulted in the same Annual Pension Increase, but a different Supplementary Increase. The details are set out below.
Annual Pension Increase (1.45%)
The “Annual Pension Increase” for January 1, 2022, calculated in accordance with the Plan text and reviewed by our external auditors, resulted in an increase of 1.45% for all eligible Salaried Plan retirees. This impacts any member who will receive a pension from the Plan on January 1, 2022, and who was also in receipt of a pension on June 30, 2021. Those retirees who retired between July 1, 2020 and June 30, 2021, will receive a pro-rated increase.
Supplementary Pension Increase
In years where the pension fund provides for a 5-year average fund rate of return over a certain threshold (5% for New Unifor retirees and 4.5% for all other retirees), retirees are subject to a Supplementary Pension Increase if the Annual Pension Increases in any of the previous 3 years were below the Consumer Price Index (CPI) Formula.
Since the Annual Pension Increases in the last 3 years were all equal to the CPI Formula for all other retirees, they do not receive a Supplementary Pension Increase for January 1, 2022.
Since the Annual Pension Increases in the last 2 years were lower than the CPI Formula for the New Unifor retirees, those eligible will receive a Supplementary Pension Increase for January 1, 2022. The total increase retirees are eligible for depends on their retirement date. Click here for further details on the total increase listed by retirement date.
Please refer 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)