At McMaster University, a majority of current retirees receive their pensions from one of two defined benefit pension plans. In broad terms, one plan covers retirees who were paid a salary and the other, retirees who were paid on an hourly basis. Starting in 2008, defined benefit plans were replaced by defined contribution plans for new employees in the hourly employee, management, and senior academic/administrative groups.
It is important to know the terms of the pension plan that you belong to. For more information, visit the McMaster Human Resources retirement plans page, or contact Human Resources.
MURA enjoys representation on the two committees that oversee our pensions. Both representatives are members of MURA's Pensions and Benefits Committee and non-voting members of MURA Council.
Pensions and Benefits Committee Members 2017/18
The Committee strives to keep informed of changes and areas of concern regarding pensions and benefits so that MURA members can be kept informed.
For any current year, the pension increase calculation is based on:
a) the last 5 years' annual average rate of return (net of investment costs) that exceeds 6.0%, and
b) the Consumer Price Index (CPI)
The annual increase is whichever of a) and b) is the least. The calculations are based on pension fund performance and CPI as of June 30 in the relevant previous years.
Same as the hourly plan except that 5-year annual average returns in excess of 4.5% are available for consideration in the formula. If the amount available from fund returns in the previous 5 years has not been used to give increases in previous years, the formula also allows for a possible "catch up" amount.