Pension Dispute Rises to a Boil

The Current February 2006 Pension Newsletter in the second page left column has again highlighted an issue that has been taken to the Financial Services Commission of Ontario, the body that adjudicates disagreements over pensions, by YUFA.

The main issue is the manner in which the York University has dealt with a component of the York University Pension Plan. This issue is the manner by which the incrementation of Pension payouts for Retirees is calculated. The Unions' agree that the rolling four year average can only be used for positive incrementation. The University is calculating in a manner that effectively allows the Pension plan to recover the plan loss of 4.6074% in 2002, which effectively has wiped out increases to the amounts pensioners should be receiving since 2003.

Some of this dispute is also shown at the bottom of page 2 of the August 2004 Pension Newsletter. The item discusses how the loss of 2002 is being recovered from the University. The February 2005 Pension Newsletter showed a robust fund that still could not increase Pensioners payouts!