August 22, 2013
Concordia joined with six other universities to present a brief on August 21 in response to a Government of Quebec study, called the D’Amours Report, on ways to ensure adequate funding of what the study refers to as supplemental pension plans.
The seven Quebec universities account for nine defined benefit pension plans representing some 25,400 active participants, 11,565 beneficiaries and $8.15 billion of assets under management.
The 14-page brief was presented during an evening hearing of the Commission des finances publiques at the Quebec National Assembly. [EXPAND Read more]
“Concordia is working hard to ensure the sustainability of the university’s defined benefit pension plan so that we are able to continue to provide retirement income for our employees and retirees,” says Concordia Vice-President, Services, Roger Côté. “Our efforts will include engaging in dialogue with our internal and external stakeholders.”
Concordia employees contribute to one pension plan. It is a defined benefit pension plan representing 3,800 active participants and about 1,500 retirees and beneficiaries, with some $700 million of assets under management. Under a defined benefit pension plan, the income an employee receives at retirement is predetermined and is generally based on a formula involving the employee’s years of service, age and earnings.
In the brief, the seven universities conclude that the full and immediate implementation of the D’Amours Report recommendations would exacerbate their pension funding challenges. The universities recommend that the government take a more balanced approach to solving the problem.
“Any changes by the Government of Quebec to pension funding measures for our universities should reflect the particular situation of each university,” adds Côté. “At Concordia, we are seeking solutions that meet the needs of our university and its employees.” [/EXPAND]