In the last YUFA newsletter we reported on the employer's intention to increase the non-reduction levy charged to money purchase accounts when they are converted to an annual pension at retirement. The proposal would have reduced members' money purchase pensions by 5%. YUFA joined other employee groups on campus to strongly oppose such a change, citing the clearly incorrect and arbitrary assumptions the Plan actuary was using to arrive at the cost of non-reduction.

At the October meeting of the All-University Pension Committee the employer indicated that it was suspending plans for such an increase - for the time being - due to current market volatility. YUFA may decide to litigate this matter (in conjunction with other employee groups) if the employer were to once again announce plans to increase the levy in a way that uses incorrect assumptions, or fails to revise its actuarial model to reflect the true costs of the non-reduction guarantee.

In the meantime the employer has assured us that the suspension of these plans means that YUFA retirements planned for July 1, 2023, will not include an increase in the non-reduction levy above the current 5% level. Please recall that members who would receive a minimum guarantee pension are not affected by the levy. Further discussions with the employer on this matter will take place in the coming months and we will report back to members as appropriate.