United Steelworkers (USW) Local 1998 and the University of Toronto Faculty Association (UTFA) have entered into a co-operation agreement to assess options for the reform of the University of Toronto pension plan aimed at ensuring its long-term sustainability.
Both the union and the faculty association acknowledge that the pension plan has solvency funding requirements and an ongoing deficit, which, under current government regulations, represent a significant concern with regard to the financial stability of the plan.
The agreement proposes a joint working committee involving the university administration, the USW and the UTFA to work collectively to assess pension reform options and potential solutions, including the possibility of a jointly sponsored pension plan.
The USW and UTFA have proposed to work together with the university administration to develop a comprehensive reform proposal that will ensure that the plan, or a successor of the plan, is a viable and long-term sustainable vehicle for the provision of retirement benefits.
“We are encouraged by the goodwill on both sides to deal with this very important problem for our members,” says Paul Tsang, president of USW Local 1998.
“The faculty association is pleased to have arrived at an agreement to begin the process of stabilizing the pension plan for the long term,” adds UTFA president Scott Prudham. “We look forward to co-operation from the university administration.”
The University of Toronto pension plan currently provides pension benefits to more than 17,000 members, including 5,000 retirees.
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