Total Compensation Statement

Answers

Can I reconcile my Total Compensation Statement to the 2018 T4?

Yes.   The earned income on your Total Compensation Statement is your Employment Income (Box 14) less Taxable Benefits (box 40).

How are the employer contributions to the pension plan determined?

Employer contributions are comprised of two parts. 

First, the independent actuarial valuation determines the percentage of member contributions that are required (for 2018, 121.2% for Retirement Pension Plan and 120.7% for Professional Pension Plan).  This is called the Normal Cost and is shown on the Total Compensation Statement.  

Second, special lump sum payments are made.  For the 2018 Calendar year, the University made significant special payments for Going Concern Amortization ($12.9 million) and Solvency Amortization ($21.6 million). This amounts to approximately $10,084 per active member in the pension plans. 

The two components are added together to determine the overall employer cost.

I like this information but would like to see more. Where can I provide feedback?

Please e-mail your feedback to Margaret McLeod

I was only employed for part of 2018. Why do some of my values seem overstated?

Most of the values on the 2018 Total Compensation Statements are actual figures that correspond to the actual amount you and the University paid during 2018.  Some figures were only available on an annual or per person basis (such as Flexible Spending Credits, Professional Development Reimbursement, Post-Employment Benefit amount).  If you were only employed for part of 2018 (or were on a Leave of Absence for part of 2018) these figures could be overstated

My personal information is incorrect? How do I update it?

If you find any errors in the information, please call your Human Resources Service Associate at 519-824-4120 extension 53374.  If changes have been made to your information since the end of 2018, they may not be reflected on this statement.

There is a cost associated with Flex Credits, PDR and other benefits. What are these?

In the interest of staff development, the University provides an annual Flex Credit (including HCSA, TWSA and PDR) to eligible employees.  Eligibility criteria and amounts are outlined in applicable collective agreements and/or compacts.   The value of the Flex Credit varies by employee group.    The value showing on your Total Compensation statement is the maximum available to you based on your employee group and employment status.

Other benefits provided include: 

  • A tuition scholarship plan for dependants and spouses

  • Supplemental income payments for those who are absent from work due to maternity or parental leave

  • Confidential, professional counseling through the Employee Assistance Program

  • Tuition Waiver for regular full-time employees who have completed one year of service

  • Athletic Fee Subsidy

  • Learning and development opportunities

The value of these other benefits varies according to need and usage.  Not all employees are eligible for all of these benefits.  The total cost to the University for providing these benefits in the fiscal year ending April 30, 2018 was approximately $1,060 per member eligible.

What are Post-Employment Retirement Benefits and why are they shown as an employer paid benefit?

This amount reflects the current service cost of retiree benefits which is an estimate of the cost of adding one more year of service for our active employees. It is the best measure of the annual cost of post-retirement benefits and best reflects the annual cost of our active employees.

What are statutory benefits and why are mandatory government benefits included in this statement? Aren't these mandatory for employers?

Statutory benefits are benefits provided by the government for which the University must contribute on your behalf.  For some of these benefits you are also required to make contributions. While the University must make these contributions, these statutory benefits are still a cost that the University must pay on your behalf, so they are included in your Total Compensation statement.  The following outlines each of the required statutory benefits:

Ontario Provincial Health Plan

As someone who has met the eligibility requirements of OHIP, you are entitled to access family physicians, specialists and hospitals and other health practitioners for maintaining your health and for treatment of illness or injury.  The University pays the Employer Health Tax levy at a rate of 1.95% of earnings to help fund the provincial health insurance plan.

Workplace Safety Insurance


As a worker for an Ontario employer, you are entitled to income during periods of time when you are absent from work due to an injury that occurred while working for your employer.  In 2018, the University paid a premium at a rate of $0.37 per $100 earned to a 2018 earnings ceiling of $90,300.   


Employment Insurance

All workers in Canada between the ages of 18 and 65 are required to contribute towards an income replacement program payable from the federal government.  During periods of unemployment or while on maternity or parental leave, you are entitled to receive some income, depending on your earnings and the period of time over which you contributed.  You are required to pay 1.66% of insurable earnings and the University contributes 2.324% of insurable earnings.   Insurable earnings are all earnings up the 2018 ceiling of $51,700.

Canada Pension Plan (CPP)

All workers in Canada between the ages of 18 and 65 are required to contribute towards their retirement payable from the federal government pension plan.  The pension payable is dependent on your earnings and the number of years contributing.  There may also be disability, survivor and orphan benefits payable from the plan.  You may draw a pension from the plan if you are substantially retired and age 60 or older.  Both you and the University contribute to the plan at a rate of 4.95% of pensionable earnings.  Pensionable earnings are all earnings between $3,500 and a 2018 ceiling of $55,900 per annum.

What are the Group Insurance Benefits provided by the University?

The University provides the following group insurance benefits to eligible employees:

Extended Health Coverage

The Extended Health care plan provides you and your eligible Spouse and dependant children with coverage for drugs legally requiring a prescription, semi-private hospital room accommodation, a wide range of medically necessary services and supplies, vision care, paramedical services, emergency out of country coverage and much more.  

Dental Coverage

The Dental care plan provides you and your eligible Spouse and dependant children with coverage for preventative dental services, restorative dental services and orthodontic services.  

Life Insurance

The University provides eligible employees with life insurance.  For Regular Full-Time employees, in the event of your death prior to retirement, your beneficiary(ies) or estate will receive a lump sum payment of 1, 2 or 3 times your annual earnings (rounded to the next higher $1000) depending on your eligibility and the level of coverage you have selected.  For Temporary Full-Time employees (contract), life insurance is at 1x annual earnings up to a $25,000 maximum.

Income Protection (Disability)

The University’s income protection program protects you against loss of income during periods of absence from work due to illness or injury.

For Regular Full-Time employees, during the first 90 calendar days of absence, your regular full-time earnings are continued.   If you qualify, Long Term Disability benefits commence after the first 90 days.   You receive 66.67% of your regular full-time earnings up up to a monthly maximum for your employee group.    This benefit will be reduced by other sources of income you may have (CPP disability, WSIB disability, etc.).    While on disability your Extended Health and Dental coverage are continued with the same cost sharing arrangements as active employees.   Your Life Insurance coverage also continues, and if you receive Long Term Disability benefits for more than 6 months, the premiums for life insurance will be waived for the duration of your disability.  Disability benefits continue to age 65 for Regular Full-Time employees or a five year maximum benefit duration for contract employees.

What is the cost of pension benefits provided by the University to help me save for retirement?

The University is the plan sponsor for three Defined Benefit pension plans that provide retirement benefits for employees.  Your pension at retirement is based on a defined benefit formula.  This means that the monthly pension you will receive at retirement is based on your years of pensionable service and best 36 months' average earnings.   Both you (via payroll deduction) and the University are required to make regular ongoing contributions to your pension plan.  Contribution rates for employee are outlined in the applicable collective agreement or compact.  In addition to your payroll deductions, the University makes normal cost contributions (the current service cost shown on your statement) for all three pension plans of approximately $27.8 million per year.  


Adding to the cost of these plans to the University, are “special payments” required to fund the Plans’ deficits.  For the 2018 Calendar year, the University made significant special payments for Going Concern Amortization ($12.9 million) and Solvency Amortization ($21.6 million). Refer to the Pension Plan Annual Reports found on the Financial Services website (https://www.uoguelph.ca/finance/)  for more information. 


More individual pension details can be found on the personal pension statement that was distributed to you earlier this year.

 

What is the purpose of the Total Compensation Statement?

The purpose is to create awareness of the total value of your compensation (both salary and benefits). As an employer, we recognize that compensation and benefits are integral to our ability to attract and keep employees who foster excellence. This statement is for your information purposes only.

What is Total Compensation?

The term total compensation is used by many employers to describe not only salary and wages, but also all the plans, programs, benefits and opportunities that become available to you through your employment. Some people refer to Total Compensation as the combination of direct (paid to you) and indirect (paid on your behalf) compensation. 

Who received a Total Compensation Statement?

Total Compensation statements were sent to all active regular full time staff and faculty and contractually-limited members in UGFA, P&M, USW 4120, OSSTF/TARA District 35 and Exempt Employee Groups (who were contributing to the pension plan) and actively at work on December 31, 2018 and active on the distribution date of the statement.

Why are my beneficiaries not provided on the Total Compensation Statement?

Your beneficiaries have not been reported as there are, in many instances, numerous beneficiaries for each plan.  This information could not be accommodated on this statement.   To confirm your designated beneficiaries, or who you have reported as your eligible spouse and dependant children (if applicable), please contact your Human Resources Service Associate at extension 53374.

Why does my statement not reflect vacation and leaves provided to me?

All faculty and staff are entitled to vacation that varies according to contracts and collective agreements between the University and your employee union or association.  Vacation may also vary according to the number of years of service.   In addition to these vacation days, the University has also designated at least one and up to 2 days in December per year when most faculty and staff are not required to report to work.  

Staff may also take advantage of various leaves during their career at the University of Guelph.  These leaves, in some cases, provide salary protection and a great deal of flexibility for employees. 

While this time away from your regular job at the University is quite valuable, it is difficult to quantify the value therefore it has not been included in the total compensation numbers provided on this statement.