There has been an update to the pension policy directives.
The Board of Regents recently approved several draft policy directives for the Memorial University Pension Plan, as recommended by the University Pensions Committee. These draft directives confirmed many of the University’s existing administrative practices and include some new pension plan changes, including:
- For contractual employees, the six month period leading up to mandatory pension plan participation will be eligible for buyback;
- The cost basis for buybacks of prior Memorial pensionable service that was previously refunded will change from one-half the actuarial cost of the service to the greater of full actuarial cost and commuted value;
- The cost basis for other pension buybacks will change from full actuarial cost of the service to the greater of full actuarial cost and commuted value;
- The interest rate used to finance pension buybacks will change to the rate assumed for funding the pension plan – currently 6%;
The directives, which must undergo an approval process with the provincial government, are expected to become effective in the Spring of 2013. For more information on the policy directives and any new changes, please visit www.mun.ca/humanres/pensions.php or call the Benefits and Pensions Office at 864-7406.