On October 23rd, the Government of Ontario announced that it was giving universities and other broader public sector pensions plans an additional three years of help to put their pension plans on a sustainable track.
Without this regulatory measure, a number of universities would have been required to put large amounts of additional money into their plans beginning in early 2014. The additional three years gives faculty associations and their membership much-needed breathing room as they work to address their pension challenges.
OCUFA had lobbied the government to provide some short term additional relief to the universities facing serious pension pressures. The Council of Ontario Universities (COU) was also active in advocating for extended solvency relief.
It is OCUFA’s assessment that additional short-term relief of the kind provided in this regulation will not put pension benefits at risk. The continuation of historically low interest rates is putting unanticipated pressure on plans across the province, and this relief helps mitigate the impact of this circumstance. OCUFA and faculty associations across Ontario are currently working on pensions solutions that will ensure all faculty members receive good pensions, at a fair price, through plans that are stable and sustainable.