Information provided by BUFA to the BU Administration about the possibility of Brandon University electing to be exempt from making special payments into the Pension Plan.

October 30, 2007

BUFA has reviewed the University Pension Plans Exemption Regulation which was registered on October 15, 2007 as well as correspondence from Jeff Parr dated October 12, 2007 in response to BUFA's concerns addressed in our letter to Mr. Parr dated October 6, 2007.

It is BUFA's position that the Regulation provides the University with the opportunity to make an election to be exempt from its obligation to make solvency deficiency payments under the Pension Benefits Act and regulations only. BUFA is of the view that the Regulation is not intended to, nor is it capable of, affecting the rights of BUFA under the Collective Agreement.

Article F.7.2 of the Collective Agreement provides that "Employee and Employer contributions to the Pension Plan shall be in accordance with the Plan Document."
Article 4.2 of the plan text sets out the Employer's obligations to make special payments on a solvency deficiency.

Article F.7.4(a) of the Collective Agreement, provides that "No changes or amendments shall be made to the Brandon University Pension Plan or the Trust Agreement for that Plan without the prior approval of BUFA."

Although an election under the Regulation might not contravene the Pension Benefits Act, it would amount to a very significant change to the Plan and would contravene the provisions of the Collective Agreement. BUFA is of the view that any changes to the collective agreement must occur through collective bargaining, not unilaterally by election of the University. If the University purports to make the election, BUFA will take all steps to protect the interests of its members.

I look forward to discussing this issue with you.