2010 COLA for UAPP Pensioners is 0.06% Dec 4, 2009                                                                          The 2010 cost-of-living adjustment (COLA) for pensioners who retired prior to January 1, 2009 is 0.06%. For persons who retired in 2009, the COLA increase is prorated based on the number of complete months the person was on pension in the year. The increase is applied to the base pension, including any bridge benefit that is being paid. COLA is not applied to any coordination amounts.  The COLA increase will be included with the January 2010 payment. The COLA is set at 60% of the increase in the Consumer Price Index (CPI) (Alberta) as reported by Statistics Canada. The CPI increase for the relevant period was 0.1%. The percentage increase in CPI is derived by comparing the average CPI for the 12 months ending in October 2009 with the corresponding figure for the previous year. Tax withholdings starting in January will reflect the 2010 rates applicable to the province or country of the recipient’s residence. CIBC Mellon will be issuing 2009 T4A slips in mid-February 2010. CIBC Mellon can be contacted at 1-800-565-0479 (English) or 1-800-268-1629 (French). Pensioners residing in the US can contact CIBC Mellon by calling 1-800-263-4497 or writing CIBC Mellon at CIBC Mellon Pension Benefits Department, PO Box 5858, Station B, London, ON N6A 6H2. The CIBC Mellon website www.CIBCMellon.com is also available to assist pensioners with current information, frequently asked questions, as well as the "Retiree Assistance Online Inquiry" to submit address changes, specific questions, etc. Yearly Maximum Pensionable Earnings under CPP for 2010 increases to $47,200 Oct 28, 2009                                                                          The Canada Revenue Agency has announced that the yearly maximum pensionable earnings under the Canada Pension Plan (CPP) for 2010 will be $47,200 – up 1.94% from $46,300 in 2009.  The new ceiling was calculated according to a CPP-legislated formula that takes into account the growth in average weekly wages and salaries in Canada. The employee and employer contribution rates for 2010 will remain unchanged at 4.95% each. The maximum employer and employee contribution to the CPP for 2010 will be $2,163.15 each, up from $2,118.60 in 2009.  The basic exemption amount will remain at $3,500.00. Maximum Pensionable Salary under the UAPP for 2010 increases to $138,882 Oct 28, 2009                                                                          The increase in the YMPE to $47,200 combined with the announced maximum pension benefit of $2,494.44 in 2010 for each year of service under defined benefit pension plans means that the maximum pensionable salary (sometimes called the pensionable salary cap) under the UAPP will rise to $138,882 in 2010. In 2010, the YMPE is increasing by 1.94% while the maximum pensionable salary under the UAPP is going up by 2.04%.   Canadian Institute of Actuaries Revises the Commuted Value Standard Feb 12, 2009                                                                          The Actuarial Standards Board of the Canadian Institute of Actuaries has once again adjusted the standard for calculating commuted value under a defined benefit pension plan.  The revised standard will be effective as of April 1, 2009.  The standard was last revised in 2005. The changes will impact only those vested members who terminate before age 55 and choose to receive a commuted value (a lump sum amount for pension earned to the date of termination) instead of a deferred pension payable after age 55. The amount of commuted value is affected by many factors, including service, highest average salary, prevailing interest rates, inflation and life expectancy.  The revised standard, assuming other factors stay constant, is estimated to lower the commuted value by about 15% for employees who terminate at younger ages and about 5% for those who terminate closer to age 55.  However, other factors such as inflation, interest rate, etc., are constantly changing, and those changes can have a bigger impact than this change in the standard for calculating the commuted value.   2009 COLA for UAPP Pensioners is 2.16% Nov 24, 2008                                                                          The 2009 cost-of-living adjustment (COLA) for pensioners who retired prior to January 1, 2008 is 2.16%. For persons who retired in 2008, the COLA increase is prorated based on the number of complete months the person was on pension in the year. The increase is applied to the base pension, including any bridge benefit that is being paid. COLA is not applied to any coordination amounts.  The COLA increase will be included with the January 2009 payment. The COLA is set at 60% of the increase in the Consumer Price Index (CPI) (Alberta) as reported by Statistics Canada. The CPI increase for the relevant period was 3.6%. The percentage increase in CPI is derived by comparing the average CPI for the 12 months ending in October 2008 with the corresponding figure for the previous year. Tax withholdings starting in January will reflect the 2009 rates applicable to the province or country of the recipient’s residence. CIBC Mellon will be issuing 2008 T4A slips in mid-February 2009. CIBC Mellon can be contacted at 1-800-565-0479 (English) or 1-800-268-1629 (French). Pensioners residing in the US can contact CIBC Mellon by calling 1-800-263-4497 or writing CIBC Mellon at CIBC Mellon Pension Benefits Department, PO Box 5858, Station B, London, ON N6A 6H2. The CIBC Mellon website www.CIBCMellon.com is also available to assist pensioners with current information, frequently asked questions, as well as the "Retiree Assistance Online Inquiry" to submit address changes, specific questions, etc.   Yearly Maximum Pensionable Earnings under CPP for 2009 increases to $46,300 Nov 24, 2008                                                                          The Canada Revenue Agency announced recently that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2009 will be $46,300 – up 3.12% from $44,900 in 2008.  The new ceiling was calculated according to a CPP-legislated formula that takes into account the growth in average weekly wages and salaries in Canada. The employee and employer contribution rates for 2009 will remain unchanged at 4.95% each. The maximum employer and employee contribution to the CPP for 2009 will be $2,118.60 each, up from $2,049.30 in 2008.  The basic exemption amount will remain at $3,500.00. Maximum Pensionable Salary under the UAPP for 2009 increases to $136,112 Nov 24, 2008                                                                          The increase in the YMPE to $46,300 combined with the previously announced maximum pension benefit of $2,444.44 in 2009 for each year of service under defined benefit pension plans means that the maximum pensionable salary (sometimes called the pensionable salary cap) under the UAPP will rise to $136,112 in 2009. In 2009, the YMPE is increasing by 3.12% while the maximum pensionable salary under the UAPP is going up by 4.59%. Federal Budget 2008 Tax-Free Savings Account Feb 26, 2008   The Honourable Jim Flaherty, Federal Minister of Finance, announced in his budget address the Government of Canada’s intention to set up a Tax-Free Savings Account (TFSA) for Canadians starting in 2009.  A TFSA is designed to be a registered, flexible, general-purpose savings account.  This is how a TFSA will work: Starting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward. Contributions will not be deductible. Capital gains and other investment income earned in a TFSA will not be taxed. Withdrawals will be tax-free. Neither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits. Withdrawals will create contribution room for future savings. Contributions to a spouse’s or common-law partner’s TFSA will be allowed, and TFSA assets will be transferable to the TFSA of a spouse or common-law partner upon death. Qualified investments include all arms-length Registered Retirement Savings Plan (RRSP) qualified investments.   The $5,000 annual contribution limit will be indexed to inflation in $500 increments.   Excess contributions will be subject to a tax of one percent per month. An RRSP is primarily designed for retirement.  In many ways, a TFSA is like an RRSP for everything else in life.   The federal budget also announced proposals to provide greater flexibility to Canadians in using locked-in funds stemming from federally-registered pension plans.  Alberta did something similar for monies stemming from provincially-registered pension plans, like the UAPP, a couple of years ago.   More details are available at:  www.budget.gc.ca/2008/index.html.   UAPP Board of Trustees - 2008 Dec 7, 2007   At its last meeting, the Board elected Mazi Shirvani as its Chair, and Phyllis Clark as its Vice-Chair effective January 1, 2008. The UAPP Board of Trustees for 2008 is composed of the following members: Employee Trustees Daniel Furgason University of Lethbridge Mazi Shirvani (Chair) University of Alberta Anne Stalker University of Calgary Eric Wang Athabasca University Employer Trustees Phyllis Clark (Vice-Chair) University of Alberta Pat Eagar Athabasca University Mike McAdam University of Calgary Art Nutt The Banff Centre for Continuing Education Nancy Walker University of Lethbridge 2008 COLA for UAPP Pensioners is 2.94% Nov 23, 2007                                                                          The 2008 cost-of-living adjustment (COLA) for pensioners who retired prior to January 1, 2007 is 2.94%. For persons who retired in 2007, the COLA increase is prorated based on the number of complete months the person was on pension in the year. The increase is applied to the base pension, including any bridge benefit that is being paid. COLA is not applied to any coordination amounts.  The COLA increase will be included with the January 2008 payment. The COLA is set at 60% of the increase in the Consumer Price Index (CPI) (Alberta) as reported by Statistics Canada. The CPI increase for the relevant period was 4.9%. The percentage increase in CPI is derived by comparing the average CPI for the 12 months ending in October 2007 with the corresponding figure for the previous year. Tax withholdings starting in January will reflect the 2008 rates applicable to the province or country of the recipient’s residence. CIBC Mellon will be issuing 2007 T4A slips in mid-February 2008. CIBC Mellon can be contacted at 1-800-565-0479 (English) or 1-800-268-1629 (French). Pensioners residing in the US can contact CIBC Mellon by calling 1-800-263-4497 or writing CIBC Mellon at CIBC Mellon Pension Benefits Department, PO Box 5858, Station B, London, ON N6A 6H2. The CIBC Mellon website www.CIBCMellon.com is also available to assist pensioners with current information, frequently asked questions, as well as the "Retiree Assistance Online Inquiry" to submit address changes, specific questions, etc.   Yearly Maximum Pensionable Earnings under CPP for 2008 increases to $44,900 Nov 23, 2007                                                                          The Canada Revenue Agency announced recently that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2008 will be $44,900 – up from $43,700 in 2007.  The new ceiling was calculated according to a CPP-legislated formula that takes into account the growth in average weekly wages and salaries in Canada. The employee and employer contribution rates for 2008 will remain unchanged at 4.95% each. The maximum employer and employee contribution to the CPP for 2008 will be $2,049.30 each, up from $1,989.90 in 2007.  The basic exemption amount will remain at $3,500.00. Maximum Pensionable Salary under the UAPP for 2008 increases to $130,137 Nov 23, 2007                                                                          The increase in the YMPE to $44,900 combined with the previously announced maximum pension benefit of $2,333.33 in 2008 for each year of service under defined benefit pension plans means that the maximum pensionable salary (sometimes called the pensionable salary cap) under the UAPP will rise to $130,137 in 2008. In 2008, the YMPE is increasing by 2.74% while the maximum pensionable salary under the UAPP is going up by 4.76%. Contribution Rates go down 1.0% of salary effective January 1, 2008 Oct 3, 2007                                                                          The Board, on the advice of its actuary, has lowered the total contribution rates by 1.0% of salary, effective January 1, 2008. For details, go to Publications/Contribution Rates.   2006 Member Annual Statements Released May 9, 2007 The Member Annual Statements for the period ended December 31, 2006 are now available on-line.  Your Member Statement can be accessed by going to the UAPP website at www.uapp.ca and clicking on the Retirement Planner icon at the bottom of the Home page.  You will be required to enter your previously assigned User ID and Password.  If you have misplaced your User ID or Password or if you have any questions on how to use the Retirement Planner, please call the UAPP’s administration services provider, ACS/Buck, at 1-866-709-2092 and they will be pleased to assist you.   2007 Federal Budget March 26, 2007 The federal budget tabled on March 19, 2007 included the following proposals that might interest UAPP members.  These proposals must be enacted in order to become law. 1.            Increasing the age limit for Maturing RPPs and RRSPs The Income Tax Act currently requires that an individual’s registered retirement savings plan (RRSP) be converted to a registered retirement income fund (RRIF), or be used to acquire a qualifying annuity, by the end of the year in which the individual turns 69 years of age.  Similarly, payments from a registered pension plan (e.g., the UAPP) must begin by no later than the year in which the pension plan member turns 69 years of age. Budget 2007 proposes to increase the RRSP/RPP maturation age limit to 71 years of age, effective for the 2007 and subsequent taxation years.  There are transition measures for individuals between ages 69 and 71.  Existing registered plan annuities can be amended, without adverse tax consequences, to reflect the later conversion age.  As well, employers will be allowed to amend their registered pension plans (RPPs) to allow benefits to accrue, and contributions to be made, in respect of employed members who are 71 years of age or younger at the end of 2007, subject to any otherwise applicable adjustments to pensions in pay. RRIF owners must withdraw a specified minimum amount each year following the year in which the RRIF is established.  In order to harmonize the RRIF rules with the proposed measure, this requirement will be waived in 2007 for those RRIF owners who turn 71 years of age in 2007, and in 2007 and 2008 for those RRIF owners who turn 70 years of age in 2007. 2.                  Phased Retirement – Pension Payments and Accruals for Older Workers The Income Tax Regulations currently hinder the implementation of phased retirement arrangements by preventing employees from accruing pension benefits under a defined benefit RPP while receiving a pension from that pension plan or from another defined benefit RPP of the same or a related employer.  This requirement is an incentive for many older workers to leave their employment with their current employer and retire in order to benefit from early retirement subsidies. The government wants to help employers to retain older workers.  Consequently, Budget 2007 proposes that employees be permitted to simultaneously receive up to 60% of their accrued defined benefit pension (including bridge benefits) and accrue further pension benefits.  The measure will apply only to employees aged 55 years or over who are entitled to an unreduced pension.  These changes will come into effect beginning in 2008. Comment: The increase in age limit to 71 when a plan must start paying a pension is essentially a return to the 1996 rules. The notion of phased retirement is not new.  Alberta already allows a limited form of phased retirement.  However, Alberta’s rules may also require amendments if those are to accommodate the federal proposals if and when they become law. The proposals and their impact, if any, on the UAPP, will be studied as further details become available.     UAPP Board of Trustees - 2007 Jan 4, 2007   The UAPP Board of Trustees for 2007 is composed of the following members: Employee Trustees Mazi Shirvani (Vice-Chair) University of Alberta Daniel Furgason University of Lethbridge Eric Wang Athabasca University Anne Stalker University of Calgary Employer Trustees Nancy Walker (Chair) University of Lethbridge Phyllis Clark University of Alberta Mike McAdam University of Calgary Art Nutt The Banff Centre for Continuing Education Pat Eagar Athabasca University   2007 COLA for UAPP Pensioners is 2.16% November 22, 2006 The 2007 cost-of-living adjustment (COLA) for pensioners who retired prior to January 1, 2006 is 2.16%.  For persons who retired in 2006, the COLA increase is prorated based on the number of complete months the person was on pension in the year.  The increase is applied to the base pension, including any bridge benefit that is being paid.  COLA is not applied to any coordination amounts.   The COLA increase will be included with the January 2007 payment.  Persons on advances will be paid COLA retroactively once their pension has been finalized.   The COLA is set at 60% of the increase in the Consumer Price Index (CPI) (Alberta) as reported by Statistics Canada.  The CPI increase for the relevant period was 3.6%.  The percentage increase in CPI is derived by comparing the average CPI for the 12 months ending in October 2006 with the corresponding figure for the previous year.   Tax withholdings starting in January will reflect the 2007 rates applicable to the province or country of the recipient’s residence.  CIBC Mellon will be issuing 2006 T4A slips in mid-February 2007.   CIBC Mellon can be contacted at 1-800-565-0479 (English) or 1-800-268-1629 (French).  Pensioners residing in the US can contact CIBC Mellon by calling 1-800-263-4497 or writing CIBC Mellon at CIBC Mellon Pension Benefits Department, PO Box 5858, Station B, London, ON  N6A 6H2.   The CIBC Mellon website www.CIBCMellon.com is also available to assist pensioners with current information, frequently asked questions, as well as the "Retiree Assistance Online Inquiry" to submit address changes, specific questions, etc.     Yearly Maximum Pensionable Earnings under CPP for 2007 increases to $43,700 November 2, 2006 The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2007 will be $43,700 – up from $42,100 in 2006.   The employee and employer contribution rates for 2007 will remain unchanged at 4.95% each.   The maximum employer and employee contribution to the CPP for 2007 will be $1,989.90 each, up from $1,910.70 in 2006.   Maximum Pensionable Salary under the UAPP for 2007 increases to $124,221 November 2, 2006 The increase in the YMPE to $43,700 combined with the previously announced maximum pension benefit of $2,222.22 in 2007 for each year of service under defined benefit pension plans means that the maximum pensionable salary (sometimes called the pensionable salary cap) under the UAPP will rise to $124,221 in 2007.   In 2007, the YMPE is increasing by 3.8% while the maximum pensionable salary under the UAPP is going up by 5.1%.     Changes to the Alberta Employment Pension Plans Act and Regulations Sep 15, 2006 The Government of Alberta has recently announced changes to the Employment Pension Plans Act and Regulations.  These changes are mostly procedural in nature and will have little impact on the majority of the UAPP members.  The key changes that might interest UAPP members are: Matrimonial Property Order/Agreement Members who get a divorce will now be able to divide pension assets by using either a Matrimonial Property Order or a Matrimonial Property Agreement.  Previously, divorcing members were required to obtain a Matrimonial Property Order.  However, the Agreement still has to be enforceable under the Matrimonial Property Act (Alberta). Comment:  The intent here is to add another vehicle that divorcing members and their spouses can use to divide pension plan assets.  A Matrimonial Property Agreement may be less onerous to obtain.  However, persons in this situation are advised to consult their lawyer on the subject. Greater Access to LIRA Funds Persons who are over age 50 and have pension monies in a Locked-In Retirement Account (LIRA) will now have greater ability to access those funds by moving up to 50% of those funds into an RRSP or RRIF, or withdraw them as cash, and the balance into a Life Income Fund (LIF) or annuity.  Persons with a spouse will need the spouse’s permission to do so.  The financial institution holding the LIRA will provide procedural details involved in moving monies from a LIRA to an RRSP and LIF. Comment:  Since pension plan funds are considered to be savings towards income in retirement, the law limits access to those funds when a member leaves a pension plan before retirement.  For example, a vested employee who takes out the commuted value of accrued benefits on leaving the plan before retirement is required to transfer those funds into a LIRA.  A member can access those funds only by transferring LIRA monies to a LIF.  There are rules limiting the maximum amount a person can take out in a year from a LIF.  On the other hand, subject to income tax, funds in an ordinary RRSP or a Registered Retirement Income Fund (RRIF) can be taken out at any time.  Some persons who need to cash the funds in their LIRA have objected to the law prohibiting access to those funds.  This change will allow such persons greater access to LIRA funds by permitting them to move up to 50% of those funds into an RRSP or RRIF, or withdraw as cash, and the balance to a LIF.  However, any withdrawals from an RRSP and/or a LIF will still be subject to income tax. Spousal Waivers Spouses of members who wish to waive their right to a joint-life pension will in future be required to state even more clearly (by using a new two-part waiver form) what they are waiving.  A member’s spouse waiving the rights will be required to sign a two-part waiver form.  Part 1 deals with waiving the right to a joint-life pension and Part 2 deals with waiving entitlement to any remaining benefits on the member’s death.  A spouse waiving rights under Part 1 does not have to waive Part 2 entitlements. Spouses will also be able to waive entitlement to the pre-pension commencement death benefit by signing a prescribed waiver form prior to the member’s death.  The signing will remove the spouse as beneficiary. As part of signing a waiver, the spouse will have to state that he/she has received independent advice before signing the waiver. Comment:  Spouses rarely sign waivers.  However, all members and their spouses are well-advised to seek sound legal and/or financial advice before signing any form of waiver. LIRA Clarification for Non-residents The changes to the EPPA have also clarified that pension entitlements (e.g. commuted value lump sums) of a member or a surviving spouse who becomes a non-resident of Canada for income tax purposes (as certified by the Canada Revenue Agency) are exempt from locking-in requirements.  However, in the case of a member, unlocking is still subject to the spouse’s consent that is to be given in a specified form. Comment:  Since non-residents cannot set up a LIRA, EPPA requirements have been clarified. The UAPP welcomes Trevor Pelton May 1, 2006 The UAPP is pleased to announce the appointment of Trevor Pelton, CMA, as Director, Finance & Administration, effective May 1, 2006. Trevor will be taking over from David Taylor who left the UAPP Trustees’ Office at the end of April 2006. Trevor is a financial management professional with a strong record of accomplishments in financial management, cost reductions, internal controls, system technology design and implementation, and performance measurement. Trevor is responsible for developing and maintaining effective internal controls, financial procedures and reporting systems.  As a key member of a small team, he will participate in all aspects of business planning and implementation and has the primary responsibility for proactively managing financial and pension plan administration issues. We welcome Trevor to the UAPP and look forward to working with him. UAPP Board of Trustees - 2006 Dec 22, 2006   At its last meeting, the Board elected Nancy Walker as its Chair, and Mazi Shirvani as its Vice-Chair effective January 1, 2006. The UAPP Board of Trustees for 2006 is composed of the following members: Employee Trustees Mazi Shirvani (Vice-Chair) University of Alberta Daniel Furgason University of Lethbridge Eric Wang Athabasca University Ted Horbulyk University of Calgary Employer Trustees Nancy Walker (Chair) University of Lethbridge Phyllis Clark University of Alberta Mike McAdam University of Calgary Art Nutt The Banff Centre for Continuing Education Representative Pat Eagar Athabasca University   Maximum Pensionable Salary rises to $118,186 in 2006 Dec 14, 2005       The Yearly Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan will increase to $42,100 in 2006 from $41,100 in 2005.  The 2006 YMPE combined with the previously announced maximum pension benefit of $2,111.11 for 2006 for each year of service under defined benefit pension plans means that the maximum pensionable salary under the UAPP will rise to $118,186 in 2006 from $112,330 in 2005.   In 2006, the YMPE is increasing by 2.0% while the maximum pensionable salary under the UAPP is going up by 5.0%.   2006 COLA for UAPP Pensioners is 1.20% Nov 22, 2005
	The 2006 cost-of-living adjustment (COLA) for pensioners who retired prior to January 1, 2005 is 1.20%.  For persons who retired in 2005, the COLA increase is prorated based on the number of complete months the person was on pension in the year.  The increase is applied to the base pension, including any bridge benefit that is being paid.  COLA is not applied to any coordination amounts.   The COLA increase will be included with the January 2006 payment.  Persons on advances will be paid COLA retroactively once their pension has been finalized.   The COLA is set at 60% of the increase in the Consumer Price Index (CPI) (Alberta) as reported by Statistics Canada.  The CPI increase for the relevant period was 2%.  The percentage increase in CPI is derived by comparing the average CPI for the 12 months ending in October 2005 with the corresponding figure for the previous year.   Tax withholdings starting in January will reflect the 2006 rates applicable to the province or country of the recipient’s residence.  CIBC Mellon will be issuing 2005 T4A slips in mid-February 2006.   CIBC Mellon can be contacted at 1-800-565-0479 (English) or 1-800-268-1629 (French).  Pensioners residing in the US can contact CIBC Mellon by calling 1-800-263-4497 or writing  CIBC Mellon at CIBC Mellon Pension Benefits Department, PO Box 5858, Station B, London, ON  N6A 6H2.   The CIBC Mellon website www.CIBCMellon.com is also available to assist pensioners with current information, frequently asked questions, as well as the "Retiree Assistance Inquiry Form" to submit address changes, specific questions, etc.  Please choose the Retiree Assistance button on the main page of the website to view the section of the website devoted to retirees.

Contribution Rates go up July 1, 2005
Jun 20, 2005