UT Pension Concerns

Today a letter went out to UTFA Council Representatives from George Luste, President of UTFA, discussing some recent developments and on-going concerns.

As per Article 12 in the UTFA By-Laws it is the responsibility of all elected Council Members to keep their constituents informed about important matters. As one of the Librarian representatives on the UTFA Council and as Chair of the Librarians Committee, we believe it is important to keep you informed. Here is the email sent to Council members today, Jan. 28, 2011:

“Dear Colleagues:

The deficit in our pension plan is receiving considerable attention at Simcoe Hall.

The driving factor is that at least once every three years the plan sponsor (Governing Council) must make a regulatory filing to the province. Because they did not do in the last two years they must do so as July 1, 2011. There is no choice now (as there was during the last two years).

Because the current deficit is substantial – even with tricks like “smoothing” the assets – this will have a major impact on the operating budget. The Administration is scrambling to meet the anticipated funding requirement.

Yesterday at Academic Board it was on the agenda. Angela Hildyard presented the Administration’s view of the problem. A few questions were asked. I thought an undergraduate student asked the most perceptive questions.

On Monday it is a major item on the agenda at Business Board. The meeting is from 5 pm to 7 pm in the Council Chambers at Simcoe Hall. If you have the time I urge you to attend. I will be requesting time to speak (5 minutes max).

The agenda for the Jan 31 BB meeting can be found at http://www.governingcouncil.utoronto.ca/Assets/Governing+Council+Digital+Assets/Boards+and+Committees/Business+Board/2010-2011+Academic+Year/a0131.pdf

A number of links are provided in the agenda. Agenda item #7 has a link to a 19-page pdf file for “Ensuring a Sustainable Pension Plan” – that you might wish to read.

A direct link to it is  http://www.governingcouncil.utoronto.ca/AssetFactory.aspx?did=7486

It lays out some of the possible funding scenarios. And a major theme is that we are not contributing our fair share and so our contribution rates must increase.

I have a lot of concern with what is said and how it is presented.

All the best.

George

George Luste

President, University of Toronto Faculty Association

720 Spadina Ave, Suite 419, Toronto, ON M5S2T9

Tel-416-978-4676 fax-416-978-7061 luste@utfa.org “

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