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Inside UNBJoining the plan and making contributions
Joining the plan
If you are a full-time academic employee between the ages of 18 and 60, you are automatically a member of the plan. If you become a full-time academic employee when you are age 60 or over and will not complete five years of service by the time you reach your normal retirement age, membership in the pension plan is optional. You may join on the first of any month before your 65th birthday.
Membership is also optional if you are a part-time academic employee. You may join on the first of any month if, in each of the two previous calendar years, you have earned at least 35% of the Year’s Maximum Pensionable Earnings (YMPE), which is the maximum earnings used to calculate contributions to the Canada Pension Plan (CPP). Once you join the plan, you must remain a member for as long as you are an academic employee.
Contributions
Both you and the University contribute equally to the plan. Your contributions are made through regular payroll deduction, and are tax deductible. The contribution rate changes from time to time, based on the advice of the plan's actuary. By law, a complete actuarial review of the plan is carried out every three years.
The current rate (effective from July 2007) is:
9.11% of your salary up to the CPP earnings ceiling, and
10.81% on your additional earnings.
For example, if you earned $90,000 in 2012, your contribution would be $8,877 (9.11% x $50,100 = $4,564 plus 10.81% x39,900= $4,313).
To avoid having to make contributions for a pension that exceeds the maximum allowed under the Income Tax Act, you do not make contributions on your income above a certain level. This level changes from year to year.
Working part-time
Contributions
If you work part-time, your contributions are pro-rated based on the ratio of your part-time salary to what you would make if you were employed in the same position full-time. For example, if your full-time earnings would be $90,000 and you worked half-time, you would calculate the contribution on $90,000 and divide the result in half.
Service and your benefit
To find out when you can retire, whether you qualify for special early retirement, and when calculating the amount of your pension, your years of service are pro-rated on the same basis as your contributions (ratio of your actual salary to a full-time salary). However, for the purpose of deciding whether you have the two years of plan membership (or five years of service) required for reduced early retirement, death and termination benefits, your part-time employment is counted as full-time employment.
Service
The following count as periods of service:
periods of time you contributed to the plan (more information on part-time employment and workload reduction)
leaves of absence, including disability leave and maternity/parental leave, for which contributions have been made
service from a previous period of employment with UNB for which you have accepted a deferred pension or for which you have repaid any amounts transferred from the plan.
Pension statements
To help you keep track of your pension benefits, a personal statement is sent to you each year. Your statement shows contributions, the amount of pension you have earned to date (including any pension earned before 1993 under the PSSP), and your projected pension at retirement.
