The University of Waterloo is exploring the possibility of joining University Pension Plan (UPP). This would mean converting our Registered Pension Plan (RPP) to UPP, a multi-employer, jointly sponsored, defined benefit pension plan.
Any move to UPP would require the approval of plan members through a regulatory consent process, expected to take place after the exploration phase.
Why is Waterloo exploring UPP?
Why is Waterloo exploring UPP?
Waterloo’s RPP has grown to approximately $2.8 billion, making this an appropriate time to consider how the plan can be positioned to build on its strength and continue serving members well into the future.
The University is exploring UPP because it is dedicated solely to pensions and built specifically for the university sector. As a larger, multi-employer plan, UPP brings the advantages of scale, including the ability to spread risk across a broader membership and diversify investments more widely.
It has the infrastructure, expertise, and technology to manage pensions effectively over the long term. This includes expertise in investments, actuarial, risk management, regulatory matters, governance, member services, and pension administration.
At this point in the exploration phase, the specific implications of a conversion for members are still being reviewed. Upon completion, these considerations will be communicated to members.
What happens next?
No decisions have been made, and no action is required from you at this time.
If a conversion to UPP were to proceed, it would require member approval. This approval means at least 2/3 of active employees who are members of the RPP must consent, and fewer than 1/3 of inactive members (i.e. pensioners, surviving spouses, deferred members) may object.
As well, a potential conversion to UPP is a multi-year process that involves several legal and administrative steps. As the process moves forward, the University will continue to have detailed discussions and consultations with employees (faculty, staff, and union groups), retirees, and other organizations participating in Waterloo’s RPP (including the affiliated and federated institutions) on the implications of such a change. This engagement will include information sessions with the University’s actuary, UPP, and other experts to address any questions or concerns that members might have about a potential conversion.
We will keep you informed at every stage of this exploration. Please continue to visit this website for up-to-date information.
What would a move to UPP mean?
If Waterloo were to move to UPP, the assets from the University’s RPP would transfer to UPP and be combined with the pension funds of other employers already in the plan. These pooled assets are invested together to pay pensions to all members.
For members, this would mean that UPP becomes your pension provider. UPP would administer your pension, make payments, and provide member services and support.
Members would also benefit from UPP’s dedicated expertise in investments, risk oversight, governance, and administration. Additionally, by being part of a larger, multi-employer plan, your pension would gain additional security from shared risk and more diversified investments.
Submit questions you may have, and we’ll continue to update the FAQs and website as this project unfolds.
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