Professional Staff Association Ratification Meeting February 27th, 2019 UPP Memorandum of Agreement

University Pension Plan RECAP Creation of a Jointly Sponsored Pension Plan University of Toronto, Queen’s University and University of Guelph Sustainable Defined Benefit Pension Plan The beginnings of a sector wide plan Similar to OTPP, OMERS, HOOPP and CAAT Benefit is similar to what we have now Changes to contribution levels and early retirement provisions

University Pension Plan MOA Details 1% base increase to salaries to partially offset pension premium increases Pension premiums will rise to 9.2% and 11.5% The PSA will unanimously support the UPP Amendment of our Compact to remove Pensions as a negotiated benefit

University Pension Plan Base increase On or about July 1, 2021 – the effective date of the UPP 1% base increase added to plan member’s annual salary This increase is not in-lieu of, but rather in addition to, annual increases to be negotiated as part of a renewed compact

University Pension Plan Premium Changes As of May 1, 2019 rates are 7.94% and 9.64%, below and above YMPE This is based on our current compact in which we agreed to an increase of 25 basis points below and above YMPE in both 2018 and 2019 Our rates have been steadily rising to a 50/50 cost sharing model as part of our compact and based on direction from the provincial government Upon inception of the UPP rates will be 9.2% and 11.5% immediately No phase in period Rates climb by 126 basis points and 186 basis points

University Pension Plan Context This 1% offset has been offered to and accepted by UGFA and USW Consistent with what is being offered at U of T and Queen’s While not a direct acceptance/ratification of the offset agreements, UGFA and USW recently held referendums and overwhelmingly endorsed the UPP. Both UGFA and USW will consent on behalf of their members

University Pension Plan Professional Pension Plan Includes UGFA, all P&M, ONA, Executive Excluded, Post Docs and a few others UGFA will provide consent for all members as they are a union Non-unionized employees will consent individually Required consent threshold is 66 2/3rd of active plan members It is possible that the Professional Plan members consent to join the UPP and the other two plans (Retirement and Non-Professional) do not consent If that happens, it should not prevent our plan from joining the UPP

University Pension Plan What’s Next - Consent Process On or about March 25 all P&M employees who are in the pension plan will receive a detailed consent package You will have 90 days to consent or withhold your consent If you do not send in your form it is considered withholding consent PSA will hold a townhall in early May to discuss the consent packages and process

University Pension Plan 1) Questions and Answers 2) Ratification Vote