Memorandum of Agreement

- Between -

The Board of Governors of Trent University
(hereinafter referred to as "the Board")

- And -

The Trent University Faculty Association
(hereinafter referred to as "the Association")

As part of negotiations for a renewed Collective Agreement, the parties hereto agree as follows:

1. Subject to paragraph 2 below, the Board and the Association agree that the Plan actuary shall be instructed to prepare future actuarial reports to show the assets, liabilities and surplus(deficiency) of the Plan divided between the faculty/librarian Plan members and those outside the faculty/librarian Plan members.

    

2. The initial segregation of assets and liabilities referred to in paragraph 1 shall be subject to the unanimous agreement of the Pension Committee. The purpose of this is to enable Plan members represented by TUSA and other Plan members not represented by any union or association to ensure that any segregation of assets, liabilities and surplus(deficiency) is done in accordance with generally accepted actuarial principles and in an equitable manner agreeable to them.

   The Board gives its assurance that it has no intention of impeding in any way the proposed segregation of assets and will advise the Board members and the ex officio administrators on the Pension Committee that the purpose of obtaining unanimous consent of the Committee is only to ensure that Plan members affected by the segregation are not dealt with in any manner which appears arbitrary and unfair or unilateral.

   In the event the segregation of assets, liabilities and surplus(deficiency) cannot be agreed upon by members of the Pension Committee, the Board agrees with the Association that the matter shall be submitted to final and binding arbitration with notice to TUSA and the Plan members not represented by TUSA who may be affected by any decision of the arbitrator. The arbitrator shall be selected from among the arbitrators referred to in Article VI.9.2.2(a) of the Collective Agreement. The arbitrator will be authorized to employ an independent actuary for such actuarial assistance as is deemed necessary by the arbitrator and the reasonable costs of dispute resolution shall be paid by the Plan.

   The decision of the arbitrator shall be final and binding and the segregation of assets, liabilities and surplus(deficiency) shall be implemented in accordance with such award.

   The Pension Committee will be provided with access to the Plan actuary, Mr.ÊMurray McBride, to advise and inform regarding the methodology of segregation and any other relevant actuarial information. All members of the Pension Committee will be free to consult an independent actuary.

    

3. Bargaining unit faculty members and librarians represented by TUFA and academic administrators eligible to enter or re-enter the bargaining unit and faculty members on the Board of Governors of the University shall be considered faculty/librarian Plan members for purposes of the segregation of assets, liabilities and surplus(deficiency) within the Pension Plan.

    

4. For faculty/librarian members of the Plan, Article 14.4(c) of the Plan document dated February, 1991, shall be amended by deleting the words:

    

   "including individual case situations such as early retirement or lay-off."

5. For faculty/librarian members of the Plan, Article 1.16 of the Plan, which is the definition of "final average earnings", shall be amended to change the definition from a 5-year averaging to a 3-year averaging formula. The amended definition shall be as follows:

    

   1.16

   "Final Average Earnings" means the highest average annual Nominal Earnings paid to the Member by the University during any 3 consecutive years of the 10 years immediately preceding retirement, or termination of service. For a Member who terminates or retires before having completed 10 years of Continuous Service, Final Average Earnings shall be the highest average annual Nominal Earnings paid to the Member by the University during any three consecutive years, or the Member's Annual Nominal earnings during the Member's Continuous Service if it is less than three years. For purposes of determining Final Average Earnings, on Approved Leave with partial pay, or without pay, shall be considered as being with full pay, at the Earnings rate which was in effect immediately prior to such Approved Leave.

    

   No changes shall be made in actuarial assumptions related to the TUFA portion of the Pension Plan except on the recommendation of the Plan's actuary and after consultation with an actuary designated by TUFA.

    

6. The Plan will be amended to provide credited service to approximately 100 faculty/librarian Plan members who took unpaid or partially-paid leaves for which credited service was either partially granted or not granted during the period 1972 to 1982.

    

7. The pension benefit improvements referred to in paragraphs 5 and 6 above will be implemented as soon as is reasonably practicable after the segregation of assets, liabilities and surplus(deficiency) occurs, on the following understandings:

    

   1. The cost of the improved pension benefits will be paid for by use of pension surplus;

       

   2. An amount equal to the (initial) unfunded liability relating to such improvements will be applied as a credit to the Board's contribution obligation under the Plan pursuant to Article 14.4(b); and,

       

   3. The benefit improvements shall be considered to be improved benefits within the meaning of Article 14.4(c).

    

8. All references to the Pension Plan are to the Pension Plan document entitled "The Contributory Pension Plan for Employees of Trent University" dated February, 1991.

    

9. This Memorandum of Agreement shall not impede or in any way detract from the rights of TUFA and the Board arising from provincial legislation as to the disposition or ownership of pension surplus.

As Amended 1993

	Title Index
Chapter	I, II, III, IV, V, VI, VII, VIII
Schedule	A, AA
Appendix	A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P
Signatures