Provided by Jeff Chuchman
Benefits and Pensions Specialist, Human Resources Services

The Hourly Pension Plan utilizes a 5-year average rate of return to determine whether pensions paid from the Plan will be increased. The formula in the Hourly Plan requires that the 5-year average rate of return on the Fund exceed 6.0%.

The Hourly Pension Fund investments earned negative 1.05% for the benefit year ending June 30, 2008 resulting in a five-year average of 7.62%. Therefore there will be an increase of 1.62% to pensions paid from the Hourly Plan on January 1, 2009, in respect of Hourly retirees who were in receipt of a pension on June 30, 2008. The increase will be pro-rated for anyone who retired between August 1, 2007, and June 1, 2008.

The 5-year calculation is as follows:

Additional information about the Hourly Pension Plan can be found at www.workingatmcmaster.ca/pensions/ or by contacting pension@mcmaster.ca.