Salaried Pension Plan - Annual Pension Increase

January 1, 2012

The annual pension increase formula for January 1, 2012, which was calculated in accordance with the text of the Salaried Pension Plan (the "Plan"), and reviewed by our external auditors, has not resulted in an increase. This result was calculated based on the June 30, 2011 audited financial statements using the formula stipulated in the Plan text.

The pension increase formula takes into consideration the excess over 4.5% of the five-year average rate of return earned on the assets of the Plan, subject to a maximum of the average consumer price index. The average rate of return for the 5 years ended June 30, 2011 was 4.04%, and the average CPI for the 12-month period ending June 30, 2011 was 2.53%.  Since the average rate of return is less than 4.5%, your pension will not increase.

The information provided on this website is intended to summarize in plain language, the McMaster University Contributory Pension Plans and their respective audited financial statements. For an exact and complete description of the Plan and the financial statements, consult the Plan Text and audited financial statements. In cases where the information provided on this website differs from that contained in the Plan text and audited financial statements, the Plan text and audited financial statements will govern.