Changes to PMA Pension Plan
Consistent with the November 2010 Memorandum of Agreement between the University and the Professional Managerial Association, changes are being made to the Administrative Pension Plan for PMA-eligible members:
- Employer contributions are increasing
- The amount that new PMA-eligible employees will contribute is increasing
- Current PMA-eligible employees must choose the rate at which they will contribute.
Employer Contributions
For PMA-eligible members with less than 20 years of service, the University will begin contributing an additional 0.5% of pensionable earnings each year. For members with 20 years or more service, the University will contribute an additional 0.5% of pensionable earnings per year, provided the member elects a required contribution rate of 5.5%.
Employee Contributions - New Employees
All new PMA-eligible employees joining the pension plan on or after November 1, 2012 will be required to make regular pension plan contributions of 5.5% of pensionable earnings- an increase from 2.5%.
Current PMA-eligible employees must make a decision
Members who joined the plan prior to November 1, 2012, are now being asked to make a choice to either maintain your regular pension contributions at 2.5% or increase to 5.5%. Members with greater than 20 years service who choose the higher contribution rate will receive a premium employer contribution. (Special note: members currently contributing at the pre-1991 rate of 6% of earnings less CPP contributions must choose one of the new required contribution levels.)
As a Plan member, you must make a decision and choose the rate of your Required Contributions to your pension account by October 31, 2012.
All PMA-eligible employees will receive a package of information that offers further details and helpful information, including dates for information sessions you may attend. The package contains:
- A Memorandum outlining the changes
- An Election Form: to be completed and returned to Human Resources by October 31, 2012
- Decisions Required: a page outlining the actions you are required to take
- Considerations: a short summary of information that will assist you in reviewing your options
- Voluntary Contribution Change Form: optional - to be used if you want to change or stop or start Voluntary Contributions
If you have any questions or if you do not receive a package by October 5, 2012 please contact Human Resources at 519-661-2194.
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