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Notice of Ratification Meetings MPP - Transition Agreement Highlights

posted Jan 5, 2018, 10:52 AM by CUPE 561   [ updated Jan 5, 2018, 11:00 AM ]


Presentation and Vote

CUPE 561 and School District 43 (Coquitlam) recently announced that a tentative deal was reached on the transfer of active non-teaching pension plan (NTPP) members to the Municipal Pension Plan (MPP).  There is also a settlement agreement on Post Retirement Group Benefits for current retirees and those who have retired by December 31, 2017.

The MPP transition agreement will be voted on in a series of meetings to be held on January 16, 25, and 27.  Meeting times and locations will be posted on this website once they have been confirmed.

The Post Retirement Group Benefit agreement will come into effect if the MPP transition agreement is ratified by the necessary parties and the transfer of active NTPP members is completed.  Following are the significant details of the two agreements.



CUPE 561/SD43 – MPP Transition Agreement Highlights

The agreement requires ratification by the following parties:

  • CUPE Local 561 members employed by the Board of Education of School District No. 43 (Coquitlam)

  • Board of Education of School District No. 43 (Coquitlam)

  • BCPSEA in conjunction with PSEC


Key details of the MPP Transition Agreement are summarized below:

  • Effective January 1, 2018, active SD43 Non-Teaching Pension Plan (NTPP) members join the BC Municipal Pension Plan (MPP);

  • The NTPP is closed to new members.  All new SD43 hires will join the MPP when they become eligible;

  • Effective January 1, 2018 NTPP members who are moved to the MPP receive;

    • a 4% wage increase (this includes those individuals – such as casual or part-time employees – who have not yet met the service eligibility threshold);

    • “Hour for Hour” recognition of their NTPP retirement and pensionable service in the MPP;

    • a “No Worse Off” guarantee if they retire within 5 years after transferring to MPP (if the present value of their MPP pension is less than the present value of the pension they would have received from NTPP if the transition had not happened, SD43 will pay a taxable lump sum or annuity equal to the difference);

  • Current and future NTPP retirees get guaranteed post-1996 service indexing of 1.05% per year;

  • CUPE Local 561 will receive $100,000 to assist in the defrayment of costs associated with reaching this agreement;

  • Retirees and deferred members stay in the NTPP for now.  The Union may continue to pursue having these members also transfer to MPP.  The SD43 Board will support a cost neutral transfer of these groups to MPP.


CUPE 561/SD43 - PRGB (Post-Retirement Group Benefits) Agreement Highlights

Key details of the PRGB Agreement are summarized below:

  • Extended Health Coverage will be changed to provide for a $25,000/24 months renewal clause effective to January 1, 2018 upon Union ratification;

  • Current NTPP retirees receive a 15-year guarantee that the PRGB benefit coverage and Board subsidy of 40% (40/60 coverage cost sharing) will not change.  After this period of time the coverage and/or Board subsidy can be changed, altered, or cancelled. If changed, altered, or cancelled unilaterally, it will be subject to the grievance procedure;

  • PRGB will be available for individuals who are not able to be transferred to MPP for various reasons (unpaid leave of absence, LTD recipients, MPP pension recipients, etc.);

  • Spousal coverage will continue as per the ‘old’ rules (coverage will be extended to spouses of retirees who can demonstrate continuous health benefit coverage);

  • All Grievances pertaining to the PRGB closure at December 31, 2017 and the Board contribution levels are withdrawn by the Union; and



Both the NTPP and PRGB agreement are subject to the following requirements:

  • Changes related to improved benefits (indexing) in the closed plan and the transfer of assets to the MPP are subject to FICOM approval;

  • Application and acceptance by the MPP;

  • Methods and Assumptions Agreement related to the no worse off clause; and

  • Bulk Transfer Agreement related to past service and contribution recognition in the MPP.