Wednesday, September 22, 1993

AT THE CAMPUS CENTRE:  In the great hall of the Campus Centre today
(and tomorrow and Friday) it's Club Days, with dozens of campus
organizations setting up tables to tell students what they're about,
and entice new members.  Among the attractions: the campus branch of
the Reform Party is expecting a visit from its candidate in the Waterloo
riding, Mike Connolly, in early afternoon.

Outside the CC, on the lawn facing Math and Computer, it's CampusFest
today: an opportunity for students to collect literature and free samples
from companies that want to attract consumers.

MEETING ON PENSIONS:  Here's the text of the memo issued yesterday by
the board of governors pension and benefits committee.

      UW BOARD OF GOVERNORS            
      PENSION AND BENEFITS COMMITTEE      
      INVITES YOU TO ATTEND AN INFORMATION SESSION     
      ON TUESDAY, SEPTEMBER 28, 1993  AT 8:45 A.M.      
      IN NEEDLES HALL, ROOM 3001         
                                    
      At meetings on July 15 and September 10, the Pension and      
      Benefits Committee considered whether pension
      contributions could be reduced on a temporary basis to
      assist the University and its employees in coping with a
      budget shortfall of $9.6 million for the current year.
      This shortfall is the result of the Social Contract, the
      Expenditure Control Program, and other income losses and
      benefit tax increases.
      
      With the help of the Plan's Consulting Actuary, the
      Committee carefully reviewed the current status of the
      Pension Plan and projections for the future under
      various assumptions about inflation, salary increases,
      and contribution levels. The actuarial value (as at
      January 1, 1993) of UW's Pension Plan showed that the
      Plan assets exceed by $7.4 million the amount required
      to provide pensions promised under the Plan. This
      funding excess is expected to increase significantly at
      the time of the next actuarial valuation (as at January
      1, 1994).
      
      After lengthy discussion, the Committee concluded that
      employee and University contributions could be reduced
      temporarily without affecting present or future pension
      benefits.The overall health of the Pension Plan, which
      is the first priority of the Committee, would be
      preserved. For one year, starting September 1, 1993,
      employee contributions to the Pension Plan are being
      reduced to 90% of the regular contribution levels
      specified in the Pension Plan Text. University
      contributions are also being reduced to exactly match
      total employee contributions. In arriving at
      recommendations for employee and University contribution
      levels for 1994-95 and 1995-96, the Committee will
      consider both the health of the Pension Plan and the
      University's financial situation at that time. Both
      employee and University contribution levels will return
      to regular levels within the next few years.  Also, the
      Committee will be discussing possible timetables for
      these changes.
      
      Present and future pensions will not be affected by the
      temporary reduction in contribution levels.
      
      Net salaries of Pension Plan members will be slightly
      higher because of the reduction in employee
      contributions.This will help to offset the impact of tax
      increases and salary reductions due to unpaid days.

      The reduction in the University's contribution will produce
      savings of about $1.7 million in 1993-94, and will provide
      significant help in dealing with the $9.6 million budget
      shortfall.  Without this help, additional budget cuts of 
      $1.7 million would be required in 1993-94.

Chris Redmond
Information and Public Affairs
credmond@watserv1    ext. 3004