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Board of Regents Resolution

BOARD OF REGENTS RESOLUTION OF 17 OCTOBER 2002

Relative to the Memorial University Pension Plan

RESOLVED THAT

1. Government be requested to ask the House of Assembly to amend the Memorial University Pensions Act to prescribe that the University and employees contribute equal amounts to the Memorial University Pension Plan and that joint annual contributions be sufficient to cover current service cost as determined by the actuary at the date of each actuarial valuation [the specific contribution rate to be prescribed from time to time by Directive of the Minister].

2. Government be requested to amend the Pension Benefits Act, 1997 Regulations to exempt the Memorial University Pension Plan from the solvency provisions of the Pension Benefits Act, 1997, as is the case for all other public sector pension plans.

3. a) Government be requested to ask the House of Assembly to amend the Memorial University Pensions Act to include a provision for pension indexing, in line with the Public Service Pension Plan model of indexing, effective April 1, 2003, on the proviso that Government support is obtained, with a corresponding pension contribution rate increase of 2.4% of pensionable salary to be cost-shared equally by the University and employees [the specific contribution rate to be prescribed from time to time by Directive of the Minister]; and

b) Government be requested to amend the Pension Benefits Act, 1997 Regulations to exempt the Memorial University Pension Plan from the funding requirement of the Pension Benefits Act, 1997 relative to amortization of going-concern unfunded liabilities (within 15 years) to facilitate amortization of the past service cost of indexing over 40 years, as adopted by Government.

4. The issue of splitting the Memorial University Pension Plan not be pursued further in view of information that is currently available, and further, that any future consideration of splitting the Plan be deferred pending further consultation with all Plan stakeholders.

5. a) The University Administration be requested to study joint trusteeship with a view to implementing a joint governance model for the Memorial University Pension Plan, by March 31, 2004, through a process which involves input from employee/retiree representatives, outside of the collective bargaining process;

b) Any new governance model will be subject to the approval of the Board of Regents and such legislative changes as may be required;

c) In the interim period, the University not take action to withdraw surplus or access surplus through a partial/whole contribution holiday (which would include utilization of surplus to subsidize current service cost) until such time as these issues have been addressed through a joint governance model for the Memorial University Pension Plan.

6. Any consideration of the composition of the University Pensions Committee be held in abeyance to be addressed in concert with other facets of Plan governance (e.g., joint trusteeship).

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