See pension process below (in reverse order)

December 19, 2023:

We are so excited that the pension officially kicked off on November 1, 2023 and is now up and running! As shared previously, OPTrust requested that we do a phased approach where we get everyone onboarded first, and the second stage will be inviting anyone that would like to receive a quote on buying back past years of service (estimated to happen around February 2024), so stay tuned for more details on that.

We are also excited to propose another initiative to recognize long term staff!

The proposal: We calculated a lump sum amount for each employee that has been here for more than 5 years equal to 3% of their salary x years of service up to a maximum of $1,560 a year (3% x $25 the average hourly rate x 40 hours x 52 weeks). The lump sum would be paid over a period of time (up to 10 years as surplus funds allow) and those retiring before 10 years would be prioritized to be paid out first. 

The why: All staff deserve to retire with retirement benefits and we would like to recognize long term staff and offer an initiative to contribute to retirement savings in lieu of not being able to implement a pension until now. We chose 3% as that is the amount Compass is contributing to the pension going forward and chose $25/hr as the cap to be able to provide the largest lump sum, for the largest amount of people, and this is currently our average rate.

The roll out details: We would propose to pay out the first installment on the February 22^nd pay (this would be the installment associated with the 2023 year and has already been pre-approved by our board, if there is no further feedback to consider from the organization, yay!) We want to give folks time to offer any feedback and also have time to consult with a financial planner as we will provide everyone receiving the payment with two options: 1. You can receive your installments as a flexible cash payout on your payroll (subject to the applicable tax deductions) or 2. You can choose to keep the money in trust with Compass and use it to buyback years of service with OPTrust Select. As the buyback would be financed over up to ten years with OPTrust, the amounts would be subject to interest with a rate to be determined by OPTrust and provided on your buyback quote. In the new year, you will receive instructions for how to opt in to choice 2 if you choose, otherwise the default will be to pay out the installments on your payroll (we estimate these will be lump sum installments once a year).  

Please see FAQ for buyback.docx for further information and we ask that you please respond to the survey with any feedback prior to December 22^nd.

October 24, 2023:

We are so excited to share some Fall compensation initiatives with you as we continue working towards our total person compensation plan goals! For more information, please see the Draft Compensation Initiatives document.

The first phase of implementation will begin on November 1^st (contributions will start on the Nov 22^nd pay date that corresponds with the Nov 1-15 pay period). All permanent full-time staff will be enrolled in the defined benefit pension plan from OPTrust Select. Once this first phase of implementation is done, we will move on to second phase in a few months where we will share more information about buy back options. Please see the FAQ document for questions regarding the pension. 

To help offset the 3% staff contribution, we will also be increasing wages by $0.75/hr effective November 1^st for all staff.

We are also working on an initiative for long term staff and currently in conversation with OPTrust Select about options, more details will be shared soon!

June 16, 2023:

Dear permanent employees at Compass ELC,

The Compensation Network is excited to announce that in the coming months, we will be working toward implementation of an OPTrust Select pension plan for all permanent employees! This has been a dream of our organization for a long time, and we are so grateful to be in a position to be able to offer this to support your retirement planning.

We had 62%voter response rate. When we compared Pension vs. RRSP votes, Pension won 63.2% of the votes and RRSP won 36.8% of the votes (after accounting for the 16% of people that indicated they would be happy with either option and the 2% that said they were still unsure), so it was clear that pension was favoured by most. Of those who voted for RRSP, 15% said they didn’t have strong feelings either way.

94% of the people who selected Pension as their preferred option indicated they liked the idea of a predictable monthly pension. Others expressed that this will be a strong tool for recruitment and retention, as many people seek jobs that have a pension. 

We also acknowledge that many of our long-term staff have been hopeful for this for many years and we are working towards a win-win solution that will honour those with a long standing history with Compass as well.

Overall, there was a lot of gratitude that we are at a point where we are able to offer this and we thank everyone that took the time to provide their input!

Next Steps:

• Work with OP Trust to secure a date when the pension will begin (by the end of the 2023 calendar year).
• Review and incorporate the feedback from the survey:
  • A few people felt the mandatory 3% employee contribution to a pension would create a financial hardship for them
    • Action: The Compensation Network is working to mitigate this hardship, and will be spending the next few weeks determining how to offset the 3% employee contribution amount.
  • Several people who chose RRSP are very close to retirement so felt they wouldn’t get any benefits from a pension.
    • Action: The Compensation Network is committed to offering something to recognize long-term employment so that the implementation of a pension will feel like a benefit for all who receive it.

We are excited to communicate more details as they become available. Thank you for your high level of engagement on this important and exciting decision. 

With gratitude,

The Compensation Network

May 30, 2023:

We are excited to be putting forward two incredible options that will support retirement options for Compass ELC permanent employees.

In order to select the option that is appealing to most, we have a few resources to support you in casting your vote, and a few questions to capture your perspectives. Please check your e-mail for the link to the survey.

Please review the following pieces of information before voting:

Retirement Options Webinar

You can review the Retirement Options overview webinar here

Slide deck from webinar: Retirement Benefits.pptx

Frequently Asked Questions

Retirement FAQ document

Survey

A survey was sent out in June 2023 before a vote was conducted.