How Does The York Pension Plan Work?
Contributions to the pension plan are deducted from your pay. York University matches your contribution and even sets aside an additional 3% that goes to a special fund called the Non-Reduction Reserve. The NRR is set aside when you elect a monthly pension to help pay for the cost to maintain the level of pension in your hands in years when the moving four-year average fund return is less than six percent. At retirement, your pension is determined by looking at your age, your marital status, and your spouse’s age, if applicable. We’re lucky! At York, we have what’s called a “hybrid” pension plan. York calculates the pension two ways: money purchase – based on pension contributions and the rate of return of the fund, and defined benefit or minimum guarantee- based on your earnings and the highest five years of earnings while in the pension plan. We all get the amount of money in our money purchase account but if the calculation shows that the minimum guarantee calculation is greater Yor
