McGill’s academic salary policy
Faculty members are central to the University's success. Through their teaching, research, and service, faculty contribute significantly to the student experience and to the University's academic and research mission. McGill recognizes the importance of providing competitive and supportive working conditions that enable faculty members to thrive throughout their careers.
The University’s Academic Salary Policy establishes the framework governing academic salaries and is intended to reflect the value and academic performance of our faculty members while preserving the University's long-term ability to invest in teaching, research, students, and academic excellence. McGill regularly reviews compensation data and sector trends. McGill also publishes academic salary policies, including information on salary by rank and faculty, which provide factual information regarding academic compensation at the University.
McGill University Pension Plan
McGill recognizes the importance of providing competitive and supportive working conditions that enable faculty members to thrive throughout their careers and to plan for their retirement with confidence. The McGill University Pension Plan (MUPP) is an important part of that support, with members and the University contributing together toward long-term retirement savings and financial well-being.
For members who joined the MUPP on or after January 1, 2009, membership operates on a defined contribution basis. Under this model, both members and the University make regular contributions to an individual retirement account, and members select from a range of investment options available under the plan, based on their individual retirement objectives and risk tolerance.
Over the course of a career, contributions are invested and have the opportunity to grow through investment performance. The accumulated amount for retirement therefore depends mostly on three factors: the contributions made over time, investment performance, and the membership period in the Plan. Because retirement savings are generally accumulated over several decades, investment earnings can compound over time and contribute significantly to the value of the member's account.
This approach differs from a defined benefit pension plan, under which retirement income is determined according to a prescribed formula. Defined contribution and defined benefit plans take different approaches to managing retirement savings and retirement income. The defined contribution model offers members greater flexibility and individual control over their retirement savings, while differing from a defined benefit plan in how investment and retirement-income risks are allocated.
As an example, consider an assistant professor hired at the age of 35, at the median salary of $125,000 for that classification at McGill. Assuming annual salary growth of 3% and an average annual investment return of 5.75%, the member’s accumulated pension account is projected to reach approximately $1,888,820 by age 65, expressed in today’s dollars.
This example is intended to illustrate how contributions, investment returns and time can combine over a career to build retirement savings. Actual results will vary based on factors including salary progression, contribution levels, investment selections, market experience and the timing of retirement.
The 5.75% annual investment return used in the illustration is intended as a conservative planning assumption. For context, the Balanced Account, the MUPP’s default investment option, has generated an average annual return of approximately 7.6% net of fees over the past 30 years. If higher long-term returns were achieved in the future, all else being equal, members would accumulate greater retirement savings than illustrated above. Past performance is not an indication or a guarantee of future results.
More information about the pension plan, its governance through a formal Pension Administration Committee operating in accordance with applicable pension legislation, and member resources are available through the Human Resources website, reflecting the University's commitment to transparency and accountability.
Tenure at McGill
Tenure is one of the fundamental pillars of university life. It helps protect academic freedom and supports excellence in teaching, research and service, all of which are central to McGill's mission.
McGill maintains a rigorous and well-established tenure process pursuant to which tenure decisions are based on a sustained record of academic achievement and excellence in accordance with a process that includes careful review by peers, and by department, Faculty, and University-level assessors.
Tenure is not granted solely on account of how much time someone has held a position in a certain rank.
McGill is committed to supporting faculty members throughout their academic careers and through the tenure process. Mentorship, guidance and performance feedback are intended to support faculty members’ professional development and provide opportunities to identify achievements and areas where additional support may be beneficial.
