Queen's University retirees are expressing frustration over the new University Pension Plan (UPP), which they claim is failing to keep up with rising inflation. The UPP, a multi-employer fund launched in 2021 to address funding issues and maintain defined benefit pension plans, has been met with mixed results for Queen's retirees. The plan's investment strategy, which shifted to include private assets like infrastructure and real estate, has led to choppier returns and stagnating payouts for some retirees.
One retiree, Gordon Crawley, has received no increases to his pension since retiring in 2021, despite the consumer price index (CPI) rising by over 16% during that time. The UPP's performance-based indexation formula, which ties pension increases to investment performance, has not kept pace with inflation. This has left Crawley and other retirees feeling shortchanged, as they struggle to maintain their financial security.
The UPP spokesperson acknowledges the challenge, noting that periods with little or no increases can be difficult for retirees, especially in a high inflation environment. However, they argue that the return-based indexation formula used by Queen's can deliver higher increases in low inflation periods than CPI-based calculations. The spokesperson also emphasizes that the UPP ensures pensions don't decrease and that the plan's investment strategy aims to weather market conditions while mitigating risk.
Despite these assurances, the retirees' concerns persist. They argue that the UPP's investment style and indexation formula are not aligned with their needs, and they call for changes to better address inflation and ensure financial security for current and future retirees. The University of Queen's remains engaged with the UPP, seeking to understand its long-term investment strategy and how it supports the interests of its members.
