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2013 Pension Statements

As 2013 was the last year that pension was based solely on your "highest 3-year" average salary, it is important to review your 2013 statement for reasonableness.  To facilitate your review, the back of the 2013 statement shows the year-by-year pensionable earnings that were used to calculate your "highest 3-year" average salary.

For the majority of members, the highest three years will be 2011, 2012, and 2013.  However, there may be circumstances which cause one of your highest three years to be prior to 2011 (e.g. an acting position or temporary assignment).


The following information will assist you in assessing the reasonableness of your pensionable earnings by:

  • detailing the various types of earnings which must be adjusted for pension purposes,

  • describing how you can use your collective agreement as a tool to determine if your pensionable earnings are reasonable, and

  • demonstrating how various adjustments are handled.



TYPES OF EARNINGS WHICH MUST BE ADJUSTED FOR PENSION PURPOSES






Because of the prevalence of the above adjustments, variances between actual pay and pensionable earnings are normal; therefore, box 14 of your T4 may not reflect your pensionable earnings.



HOW TO DETERMINE IF YOUR YEAR-BY-YEAR EARNINGS ARE REASONABLE


Complete the following exercise for each year of earnings reported on the back of your statement:


  1. Calculate your start-of-year annualized pensionable earnings using the following formula:

Base hourly rate of pay for January per your collective agreement

X

1,950 hours (2,080 for certain UPSE positions)*


  1. Calculate your end-of-year annualized pensionable earnings using the following formula:


Base hourly rate of pay for December per your collective agreement

X

1,950 hours (2,080 for certain UPSE positions)*


  1. Compare the results from steps 1 and 2 with the earnings shown on the back of your 2013 pension statement.  The earnings shown on the back of your statement for the year you are checking should fall somewhere between these two results.  If this is not the case, please complete a Statement Correction Form and submit to Pensions & Benefits.

* The normal hours of work for full-time positions are 1,950 hours per year.  However, some positions covered by the Union of Public Sector Employees (UPSE) collective agreement have normal annual hours of 2,080.


CLICK HERE FOR AN EXAMPLE USING THE ABOVE EXERCISE.

 

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