Dalhousie Pension Plan
Dalhousie University's defined benefit pension plan means a great deal to all of us. It’s part of what makes Dalhousie such an attractive place to work and allows our employees to be supported and more secure in their future retirement.
Dalhousie’s unique two-fund system is not the norm. Its current structure along with the Federal CPP enhancements announced in 2018 and new provincial pension plan funding requirements threaten the health and viability of the plan for all members. The cost of the plan for employees and Dalhousie is rising. Our plan is currently underfunded, and it has been underfunded for 18 years (since June 30, 2002). In the past 5 years, $30 million has been spent funding pension deficits — this takes money away from Faculties and departments that could directly support new hires, new initiatives, salary increases, etc. Dalhousie and plan members already pay a significant amount to maintain the plan and we know that the cost of Dalhousie’s plan will continue to increase.
Efforts to reform Dalhousie’s Plan over the last 10 years have been slow. The progress that has been made has been helpful, but deficits and irregularities persist. In 2019, Dalhousie’s Pension Advisory Committee (PAC) – a committee with representation from all employee groups who contribute to and benefit from Dalhousie’s Defined Benefit Pension Plan – struck a subcommittee to consider how to strengthen Dalhousie’s Defined Benefit Plan. For over six months, members of the subcommittee representing all employee groups in the plan met on a bi-weekly basis with the expert input of the Plan’s Actuary from Eckler Ltd. This group work has carefully analyzed one reform option that will save a significant amount of money without compromising Dalhousie’s strong pension benefit for faculty and staff. This reform option is called Cessation of Transfers.
Dalhousie’s defined benefit pension plan is a critical part of total compensation for faculty, employees and staff. It’s vital that our pension plan stays financially healthy, delivering returns that ensure it can fulfill its obligations to all plan members.