Published by OCUFA in Ontario University Report, 4:3 (14 Sept. 2010)
The Ontario government is seeking to ease rules requiring university administrations to maintain university pension plans in good financial health. Employee groups are strongly opposed to the government’s plan.
The importance of resisting the government’s plan has been underscored by a recent analysis of pension fund performance. The Global Pension Finance Watch reports a sharp decrease over the last quarter in the value of assets held by pension funds around the world.
For Canada, notes the Towers Watson Pension Index, Canada’s pension funds fell 7.1 per cent over the 2010 spring quarter, meaning pension fund liabilities rose accordingly.
University administrations, helped by the Ontario government, are looking to employees, including faculty, to make sacrifices in order to address pension plan funding shortfalls.
But, as employee groups point out, pension plan members were not responsible for either the recent recession, the gross mismanagement of many university pension funds, or the buccaneer capitalism that overtook highly paid pension fund managers, including those working for university pension plan funds.