UAPP Overview


Background Information (2004)
of the
Universities Academic Pension Plan

The Universities Academic Pension Plan (UAPP) is a jointly-trusteed, defined-benefit pension plan registered under the Employment Pension Plans Act of Alberta, and the Income Tax Act (Canada). The eligible academic and professional staff of Athabasca University, The Banff Centre for Continuing Education, the University of Alberta, the University of Calgary and the University of Lethbridge participate in the Plan.

The Plan pays retirement, disability, spousal/survivor, and termination benefits to eligible members or their eligible survivors. Pension benefits are based on the highest 5 consecutive years' earnings and are indexed at 60% of the annual increase in the Consumer Price Index (Alberta).

The UAPP is financed by employee and employer contributions and by investment earnings. The Alberta Government also makes contributions towards eliminating the unfunded liability for service before 1992. The Plan's funds are invested in a diversified portfolio that includes domestic and foreign equity, bonds and debentures and money market securities.

The UAPP has about 8,800 members, including 5,700 active employees, 2,700 retirees and 800 deferred pensioners. As of December 31, 2003, the actuarial value of assets was $1,731 million and the accrued pension liability was estimated at $2,273 million.

Background

The Universities Academic Pension Plan (UAPP) was set up in 1978 for the academic and professional staff of Alberta universities and The Banff Centre for Continuing Education.

Until December 31, 2000, the UAPP was established through a separate provincial statute, and the Provincial Treasurer of Alberta was the trustee of the Plan. Effective January 1, 2001, the UAPP became a non-statutory pension plan subject to the Employment Pension Plans Act of Alberta. The Plan is now established through a Sponsorship and Trust Agreement signed by the Plan Sponsors. The Plan Text, which describes the benefits to be provided under the UAPP, forms part of the Sponsorship and Trust Agreement.

The Plan Sponsors are the academic staff associations of Alberta universities, the boards of governors of Alberta universities and The Banff Centre for Continuing Education.

The Plan Sponsors' responsibilities include appointing members to the Board of Trustees, approving changes to Plan benefits and amending the Sponsorship and Trust Agreement.

The Board of Trustees is made up of four employer nominees and four employee nominees. Their responsibilities include administration of the Plan, investment of Plan funds, setting contribution rates required to fund the Plan and making recommendations regarding
Plan changes for consideration by the Plan Sponsors.

On behalf of the Board of Trustees, Mellon Human Resources and Investor Solutions provides plan administration services and the Investment Management Division of Alberta Revenue manages the Plan's investments.


Plan Governance

The Board of Trustees of the UAPP oversees the Plan. The board is comprised of four employer trustees, four employee trustees and one employer representative. The offices of Chair and Vice-Chair alternate every two years between employer and employee trustees.
The Board is responsible for administration of the Plan, investment of the Plan funds, setting contribution rates required to fund the Plan and assisting Sponsors in developing appropriate changes to the Plan. In carrying out its mandate, the board is assisted by a small management team.

It is the Mission of the Board to deliver on its mandate in a manner that is consistent with:
  • High quality services to the UAPP and members
  • Prudent investment of the fund
  • Stable contribution rates
  • Best practices in pension plan governance and management, and
  • All applicable rules, laws and regulations
In carrying out its mission, the Board is guided by the following Values:
  • Work in full partnership with the Sponsors
  • Be member/stakeholder focused
  • Be open, accountable and responsible for its actions
  • Conduct UAPP business with trust, fairness and integrity
  • Adhere to the highest ethical standards
  • Value and treat its employees as a vital resource and
  • Learn, adapt and change to do UAPP business better
Board of Trustees - 2004
Employee Trustees Employer Trustees  
Mazi Shirvani
The University of Alberta		 Bill Grace
The University of Alberta
Daniel Furgason
The University of Lethbridge		 Nancy Walker (Vice Chair)
The University of Lethbridge
Mary Hamilton
Athabasca University
David Burnett
Athabasca University
Ted Horbulyk (Chair)
The University of Calgary		 Keith Winter
The University of Calgary

Representative
Art Nutt
The Banff Centre for Continuing Education


UAPP Office

Virendra Gupta
Pat Verhagen
David Taylor

Executive Director - reports to Board of Trustees
Administrative Officer
Director, Finance and Administration

Plan Sponsors

The Plan Sponsors are the Faculty Associations and the Boards of Governors of each University. Each University appoints an Employer Sponsor Representative and an Employee Sponsor Representative. The Sponsor Representative may differ in how they are determined in each University and/or their position within the University.
  • Employer - Administration - The Sponsor Representative is generally a position within the Administration such as the V.P. Finance/Administration, Associate V.P., or Director, H.R. or as is designated by their Board of Governors
  • Employee - Faculty Association - The Sponsor Representative is generally a senior official of the Faculty Association. Banff Centre is the only institution that does not have a faculty association.
The roles and responsibilities of the Sponsors are set out in the Sponsorship and Trust Agreement and are also in the Sponsors Operating Agreement.

The current Sponsor Representatives are as follows:

University Employer Sponsor Rep. Employee Sponsor Rep.
Athabasca Pat Eagar V.P. Finance and Administration Jeff Taylor President, Faculty Association
Banff Centre Art Nutt V.P. and CFO N/A  
Calgary Mike McAdam V.P. Finance and Services M. Anne Stalker Chair, Sponsor Reps. Principal Negotiator Faculty Association
Edmonton Phyllis Clark V.P. Finance and Admin Gordon Swaters President, Faculty Association
Lethbridge Karen Clearwater Assoc. V.P. Financial Planning Tom Johnston President, Faculty Association

Sponsors' Working Group

The Sponsors established a Sponsor Working Group (SWG) to assist the Sponsors in performing their functions under the Sponsorship and Trust Agreement.

1. In order to ensure that the Sponsors have the information and recommendations they need to make the decisions relating to the roles and responsibilities set out in the Sponsorship and Trust Agreement, the Sponsors agreed to create a Sponsor Working Group which shall operate in accordance with the Terms of Reference.
Responsibilities of Sponsor Working Group
2. (1) The Sponsor Working Group is responsible for securing information about matters within the Sponsors' authority under the Sponsorship and Trust Agreement, evaluating that information, and making recommendations about those matters to the Sponsors.
(2) The Sponsor Working Group does not have the authority to make the specific decisions that are designated as under Sponsor authority in the Sponsorship and Trust Agreement. Each Sponsor, operating consistently with its own decision-making procedure, must make that Sponsor's decision on those specified matters.
3. The Sponsor Working Group is responsible for planning meetings of the Sponsors under Article 2.7 in the Sponsorship and Trust Agreement. (Also see Sponsors Operating Agreement.)

UAPP Sponsors' Working Group members are made up of persons designated from the administrative areas and faculty associations (where applicable) of the Universities. The Chair and Vice-Chair alternate every two years between employer and employee representatives.

University Employer Representatives (Administration) Employee Representatives (Faculty Association)
Calgary Gayle Gorrill Associate Vice-President (Administration) Professor Anne Stalker Chair of UAPP Sponsors
  Kay Bexson Human Resources, Coordinator Pensions and Benefits Carol Rogers TUCFA Board of Directors Vice-President - faculty representative
  Joan McDonald Human Resources Consultant Don Kozak Senior Professional Officer
Alberta Diane Albrecht Human Resources Director, Staff Programs Melville McMillan Association of Academic Staff representative
      Howard Welch Officer, AAS
Athabasca Greta Martin Human Resources Director Judith van Duren Representative, faculty association
Lethbridge Marie Yolland Human Resources, Manager, Pension and Benefits Chair SWG Geoffrey Hale Representative, faculty association
Vice Chair SWG
  Joyce Eves Administrative support for SWG    
Banff Centre Joan Morgotch Director, Human Resources Not applicable  
  Mychael Gilbert Pension and Benefits Coordinator    
         

SWG Meeting attendance:

The Sponsors' Working Group meets monthly from August through November and January through June.
  • UAPP Executive Director may attend meetings as a resource to/from the Trustees
  • Standing invitation to Chair of Board of Trustees to attend

Pension Administration Coordinating Committee (PACC)
  • Representatives from pension function administrators from each member university
  • Meet to discuss administration matters and concerns (See Terms of Reference PACC)
  • Work with UAPP and CIBC Mellon (UAPP administrative provider)
University
Calgary Kay Bexson
Kathy Tumack
Sylvia Rempel
Alberta Darlene Topolnicki
Steve Dutchin
Lethbridge Barb Thomsen
Athabasca Paulette Patry
Leasa Schmelzle
Banff Centre Mychael Gilbert

Current Issues

  • Plan Design
  • Legislative developments
  • Communication