Re: pension plan

Ronda

Sent by magic

On Nov 16, 2018, at 5:55 PM, Cynthia Patton <cindy_patton@sfu.ca> wrote:

My understanding is that it is the highest 5 years of salary, not the last 5.

But this raises the general question of the definition of "salary" in years when one is on a Study Leave with reduced pay or an unpaid leave. Do they consider that we are at the "Salary" we have on paper, or the amount of money received (i.e., Salary minus whatever SL option you took). This matters for those of us trying to get our last SLs before we head to the Pasture.

From: Michael Monagan <mmonagan@sfu.ca>
Sent: November 16, 2018 5:37:26 PM
To: Lyn Bartram; Ronda Arab
Cc: Julian Christians; academic-discussion@sfu.ca
Subject: Re: pension plan

I have done a calculation to figure out what you lose if you work half time after 65 at SFU for five years under the college pension plan.
Assume you worked for 30 years and the last 5 years average salary was $150,000 and you live to 85 which is just over the average life expectancy.
If you retire at 65 you collect 0.02 x 150 thousand = $90 thousand per year for 20 years = 1.8 million.
If you decide instead to work half time for 5 years at SFU at $75,000 per year from 65 yrs to 70 yrs.
You earn 5 x $75,000 = $375,000 less 10% (to BCCPP) = $337,500.
You get 2.5 extra years of service.
But you lose 5 years of pension.
This works out overall to be a loss of $338,000.
New pension for 70-85 yrs is 0.02 x 15 yrs x 32.5 yrs service x $150 thousand = 1.462 million.
This is a loss of 1.8 - 1.462 million = 338,000.

So you earned $337,500 in salary but lost $338,000 from your pension!

I'd like someone to check my numbers. Tamon?
Mike

From: Lyn Bartram <lyn_bartram@sfu.ca>
Sent: Friday, November 16, 2018 4:56:35 PM
To: Ronda Arab
Cc: Julian Christians; academic-discussion@sfu.ca
Subject: Re: pension plan

Thanks for the clarification. I note as well for people like me who may only be in the plan for a year or two that even a month in the plan before retirement provides that 10x increase in health benefits. To me that is substantial, especially given my family’s health challenges.

_________________________________________
Lyn Bartram
Associate Professor, Graduate Program Chair

School of Interactive Art + Technology

Simon Fraser University

(Poorly typed on my iPad)

On Nov 16, 2018, at 16:53, Ronda Arab <ronda_arab@sfu.ca> wrote:

Hi Lyn & Julian,

It's correct in the sense that the sum total of what you collect will be likely be smaller because you've collected your pension for fewer years. You don't, of course, collect a smaller yearly annuity if you retire later; in fact your yearly annuity will be higher because you'll have more years to plug into the formula of (years of service)(.02)(average salary for best 5 years).

Best,

Ronda

Dr. Ronda Arab

Associate Professor of English

Simon Fraser University

From: Julian Christians <julian_christians@sfu.ca>
Sent: 16 November 2018 16:39:22
To: Lyn Bartram; academic-discussion@sfu.ca
Subject: Re: pension plan

Hi Lyn
Michael's point is correct. The later you retire after 65, the fewer years you spend in retirement. What you get out of the BCCPP depends on how many years between when you retire and when you die, so if you retire later, you get less. If you work after 65, you do continue to accumulate years of service, so the amount you get when you retire will increase, but this is unlikely to offset the reduced number of years of pension benefit that you will collect.

You must start collecting your pension at 71 (https://college.pensionsbc.ca/when-you-can-retire), so I'm not sure what happens if you are still working at 71 (i.e., whether you can collect your salary AND your pension?!?).

Cheers
Julian
________________________________________
From: Lyn Bartram <lyn_bartram@sfu.ca>
Sent: Friday, November 16, 2018 4:18 PM
To: academic-discussion@sfu.ca
Subject: FW: pension plan

Dear Mike, thanks very much for these cogent arguments. I will confess in my research I missed this point:
“If you are thinking of working beyond 65 at SFU, perhaps working
   part time after 65 at SFU, you lose big. For each year you don't
   retire you lose a year of your pension in the college pension plan.”

Is this really true? How can this be – 65 is no longer a meaningful retirement number legally. For those of who consider working part time for another couple of years, how are we exactly disadvantaged? Can one of the SFUFA experts answer this please?

Lyn Bartram, Ph.D.
Director, Vancouver Institute of Visual Analytics<http://viva-viva.ca/>
Associate Professor
School of Interactive Arts and Technology<http://www.siat.sfu.ca/>
Simon Fraser University<http://www.sfu.ca/>
CANADA
v 778 782 7439/8009 f 778 782 9422 m 604 908 9954
lyn@sfu.ca<mailto:lyn@sfu.ca>

From: Lyn Bartram <lyn_bartram@sfu.ca>
Date: Friday, November 16, 2018 at 4:07 PM
To: Michael Monagan <mmonagan@sfu.ca>, "adacemic-discussion@sfu.ca" <adacemic-discussion@sfu.ca>
Cc: "nigam@math.sfu.ca" <nigam@math.sfu.ca>
Subject: Re: pension plan

Dear Mike, thanks very much for these cogent arguments. I will confess in my research I missed this point:
“If you are thinking of working beyond 65 at SFU, perhaps working
   part time after 65 at SFU, you lose big. For each year you don't
   retire you lose a year of your pension in the college pension plan.”

Is this really true? How can this be – 65 is no longer a meaningful retirement number legally. For those of who consider working part time for another couple of years, how are we exactly disadvantaged? Can one of the SFUFA experts answer this please?

Lyn Bartram, Ph.D.
Director, Vancouver Institute of Visual Analytics<http://viva-viva.ca/>
Associate Professor
School of Interactive Arts and Technology<http://www.siat.sfu.ca/>
Simon Fraser University<http://www.sfu.ca/>
CANADA
v 778 782 7439/8009 f 778 782 9422 m 604 908 9954
lyn@sfu.ca<mailto:lyn@sfu.ca>

From: Michael Monagan <mmonagan@sfu.ca>
Date: Friday, November 16, 2018 at 3:59 PM
To: "adacemic-discussion@sfu.ca" <adacemic-discussion@sfu.ca>
Cc: "nigam@math.sfu.ca" <nigam@math.sfu.ca>
Subject: pension plan

If you are thinking of working beyond 65 at SFU, perhaps working
   part time after 65 at SFU, you lose big. For each year you don't
   retire you lose a year of your pension in the college pension pl