Subject: Ad Hoc Pension Increase Policy
Approved by: The Executive Committee
Approval date: April 4, 2003
Administered by: Vice-President (Administration)
1 — PURPOSES
1.1 The purposes of this policy are to provide for the regular consideration by the Finance and Administration Committee (the "Committee") of the matter of ad hoc increases to pensions in payment under the Pension Plan for Non-Academic Employees of Mount Allison University (the "Plan") and to specify guidelines for such consideration.
1.2 This policy is for internal guidance only, is subject to revision at the sole discretion of the Executive Committee, and is not intended in any way as a commitment to current or future Plan members that ad hoc increases to pensions in payment will be made.
2 — GUIDELINES
2.1 The Committee will not recommend an ad hoc increase if the Plan surplus would be reduced to less than 5% of Plan liabilities on either a going concern or solvency basis.
2.2 An ad hoc increase will not be recommended simply because the Plan surplus will not be reduced to less than 5% of these Plan liabilities.
2.3 An ad hoc increase will not be recommended to increase pensions in payment by more than 60% of the increase in the CPI since the last such increase.
2.4 Given the expenses to the Plan to implement an ad hoc pension increase, apart from exceptional circumstances an ad hoc increase will not be recommended except in a year when the Plan actuarial valuation is completed.
3 — CONSIDERATION OF AD HOC INCREASES
3.1 The Committee will consider the matter of ad hoc pension increases annually.
3.2 If the Committee recommends an ad hoc increase to pensions in payment, it will forward its recommendation to the Executive Committee for a final decision on the matter.