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Re: pension plan

It’s a good question, but I would presume/hope that if you worked 50% you would be able to negotiate some kind of partial pension. Because in the extreme case if you you only worked 10% the last five years and got no pension you wouldn’t be able to make it. Maybe someone can answer this.

I was hired in 2002 I really wish that we had DB at that time instead of being forced to have the benefits managed by SunLife. For the last 16 years I have watched them get little to no return on my retirement folio so it is very slim. 
Based on what I have in my retirement account now and assuming I retire at 65 and die at 80. 
If I continue with same returns from SunLife as I have now my, pension once I retire would be less than half than what I calculate I would get from
the DB plan. Switching now may have less gain depending on how long I live, but I would have been much much better off with a DB plan.

The DB plan is just like any insurance the people that don’t have accidents pay for those that do. So people who die earlier contribute more. But a DB plan can give an easy of mind that you be covered when you retire regardless of how long you live. For me it reduces stress and is invaluable.

If the DB benefit plan does not pass I would like the faculty union to look at getting the option to manage our own RRSP on the stock market and not have to have SunLife mange it and pay them high management fees for mediocre gains.

Eirikur Palsson
Associate Professor, Department of Biology
Simon Fraser University

On Nov 16, 2018, at 5:37 PM, Michael Monagan <mmonagan@sfu.ca> wrote:

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