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Good news about Mac's defined benefit plan pension payments

April 10, 2020 3:21 PM | Anonymous

Greetings Retirees, 

MURA Council has received a reassuring response from the University to the question “Could there be a disruption or decrease to McMaster retiree defined pension benefit payments as a result of the dramatic impact of COVID-19 on the economy?” The main take away from the response is as follows:

“Benefits payable from the [Defined Benefit] pension plans are not impacted by the COVID-19 pandemic and its impact on financial markets. The plan assets are held in trust, separate from the University’s general revenues. The plans are, and will continue to be, funded in accordance with applicable legislation. The University’s pensioner payroll, delivered by CIBC Mellon Trust Company, remains fully functional and the University does not anticipate payment delays at this time.”

The full response from the University, including contact information, is below.
 
Take good care.
       - your MURA Council
 
Full University response:

In light of the ongoing COVID-19 pandemic and its impact on financial markets, it is understandable that those in receipt of a pension benefit may have questions about what effect the present situation will have on their pension. The University continues to closely monitor the current economic impacts of the COVID-19 pandemic, and any impact that this will have on the University and its pension plans.

McMaster has three defined benefit (DB) pension arrangements:

  • Contributory Pension Plan for Salaried Employees of McMaster University Including McMaster Divinity College 2000 (“Plan 2000”);
  • Contributory Pension Plan for Salaried Employees of McMaster University Including McMaster Divinity College (“Original Plan”); and
  • Contributory Pension Plan for Hourly-Rated Employees of McMaster University Including McMaster Divinity College (“Hourly Plan”).

Under a DB pension plan, pension benefits are based on a member’s years of service in the pension plan and pensionable earnings, as defined within the applicable pension plan text.

Benefits payable from the DB pension plans are not impacted by the COVID-19 pandemic and its impact on financial markets. The plan assets are held in trust, separate from the University’s general revenues.  The plans are, and will continue to be, funded in accordance with applicable legislation. The University’s pensioner payroll, delivered by CIBC Mellon Trust Company, remains fully functional and the University does not anticipate payment delays at this time.

Questions about your pension benefit can be directed to hr.mcmaster@mcmaster.ca.

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