News > News Archive

November 26, 2009

City Council approves employer contribution rate increase to Winnipeg Civic Employees Benefits Program

On November 25, 2009, Winnipeg City Council concurred in the following recommendation of the Executive Policy Committee:

That effective January 1, 2010, the City increase employer contributions to the Winnipeg
Civic Employees’ Benefits Program for the pension and disability plans to an average of
8% of pensionable earnings (i.e. a rate of 7.6% on earnings up to the yearly maximum
pensionable earnings and a rate of 9.4% on earnings above the yearly maximum
pensionable earnings), from the current average of 6.7% of pensionable earnings.

Background:

In February, 2009 all plan members of the Winnipeg Civic Employees’ Benefits Program received a letter from the Board of Trustees outlining the problems that the downturn in the financial market has caused for our pension plan. While the plan had set aside surpluses, these reserves have since been used up.

Since January, 2009 the plan Trustees have been meeting regularly to attempt to address this situation. On July 23, 3009, they made a recommendation to the unions and employers who own the plan, to increase both employer and employee pension contribution rates from the current 6.7% to 8% effective January 1, 2010.

The CUPE Trustees of the plan recommended that CUPE agree to this request and on September 28, 2009 the Central Council of Local 500 concurred with the Trustees recommendation.

On November 13, the Executive Policy Committee (EPC) concurred in the recommendation of the Winnipeg Public Service to increase the employer contributions and submitted the matter to Council for approval. The Local made a presentation to EPC in support of the proposed contribution increase.

Conclusion:

The Winnipeg Civic Employees’ Benefits Program has a proud history of providing good retirement income benefits at very low contribution rates. This has been as a result of surpluses created by historic investment returns. While efforts to increase investment returns continue, the fact is that contribution increases are now needed.

These contribution levels were set in the mid 1970’s and have not changed since then. However, almost every other pension plan in the country has undergone contribution increases over the last 30 years.

The following table sets out the approximate increase in the contribution amount that members will pay effective January 1, 2010 if the recommendation is approved.

Annual Earnings	Bi-Weekly contribution increase
$20,000	$10.00
$30,000	$15.00
$40,000	$20.00
$50,000	$25.00

Even with the contribution increases contemplated today, the Winnipeg Civic Employees’ Benefits Program provides the benefits it does at contributions lower than most other comparable plans. Further contribution increases may be needed, and even then, the plan would be competitive with others.

CUPE strongly believes that the contribution increases are a better solution to the plan’s problems than cuts to pension benefit levels.

November 24, 2009

Winnipeg Civic Employees Benefits Program - Employer contribution rate increase approved by EPC

On November 13, the Executive Policy Committee (EPC) of Council concurred in the recommendation to increase employer contributions to the Winnipeg Civic Employees Benefits Program for the pension and disability plans from the current 6.7% to 8% effective January 1, 2010.

The Local made a presentation in support of the proposed contribution increase.

Our pension plan is very important to all of our current members and to our retirees. The proposed rate increase still requires City Council approval. The next meeting is scheduled for Wednesday, November 25, 2009.

The Local will continue to keep the members advised of any updates regarding the pension plan.

Need more information?

Click here to download the pension questions and answers document

Click here to download the document presented to the Local 500 Executive on September 14, 2009