CAUT | ACPPU
Canadian Association of University Teachers
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Model Clause on Pension Rights for Contract Academic Staff
Contract academic staff members shall be members of the employer-sponsored pension plan. If this option is not available under the existing plan, the employer shall provide a capital accumulation plan for all members hired on a contract basis.11
Eligibility
1.1
Contract academic staff are eligible to join the plan from the date they become members of the bargaining unit.
2
Establishment of Accounts
2.1
An account shall be established in the member’s name. This account will be credited with the following:
a) All contributions made by the member and the employer, plus
b) All accumulated investment earnings of the account.
2.2
Vesting shall be immediate
2.3
Once a member has been enrolled in the pension plan, the member is eligible to make contributions and to have the employer make its contributions during the member's subsequent periods of employment. Plan membership shall only terminate when there has been a break in employment with the institution for a period of more than x months.
3
Contributions
3.1
The employer shall contribute X% of the member’s pensionable earnings; the member may contribute up to Y%.2
3.2
A member may transfer into his/her pension account the balance in a pension account with a previous employer. The transfer of such pension monies shall be completed within 6 months of becoming a member of the plan.
4
Retirement Benefit
4.1
When the member retires, the member shall receive the entire balance in the member’s account which includes all member contributions, employer contributions and accumulated investment returns.
5
Termination Benefits
5.1
If the member leaves the institution before becoming eligible for retirement, the member may retain their membership in the plan or, at the member’s request, the entire balance in the member’s account shall be transferred to an appropriate account designated by the member.
6
Authorized Leaves of Absence
6.1
Membership in the plan continues when a member is on an authorized leave of absence. If on a paid leave, the member and the employer shall continue to make their required contributions.
6.2
If the member is on an unpaid leave, the member shall have the right to continue their contributions.
6.3
The maximum years of service for which contributions can be made while on leave is 5 years plus one additional year for each year of pregnancy or parental leave (to a maximum of 3 additional years).
Approved by the CAUT Council, November 2007.
Endnotes1. A defined contribution pension plan or a group RRSP.
2. Total contribution rates cannot exceed maxima established by federal legislation.
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