[38] Bill 206 Royal Assent (PDF)
Bill 206 2006
An Act to revise the
Ontario Municipal Employees
Retirement System Act
Note: This Act amends or repeal more than one Act. For the legislative history of these Acts, see Public Statutes - Detailed Legislative History on www.e-Laws.gov.on.ca.
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
Interpretation
Definitions
1. (1) In this Act,
"Administration Corporation" means the corporation continued by subsection 32 (1); ("Société d'administration")
"annual benefit accrual rate" has the same meaning as under the Income Tax Act (Canada); ("taux annuel d'accumulation des prestations")
"associated employer" means an employer who participates in an OMERS pension plan under subsection 6 (1); ("employeur associé")
"benefits" means pension benefits and ancillary benefits, unless the context requires otherwise; ("prestations")
"local board" means local board as defined in section 1 of the Municipal Affairs Act and includes any person or entity that, under another Act, is deemed to be a local board for the purposes of this Act; ("conseil local")
"OMERS" means the Ontario Municipal Employees Retirement System; ("OMERS")
"OMERS pension plans" means the primary pension plan, any retirement compensation arrangements that provide benefits for members and former members of the OMERS pension plans and such other pension plans as may be established by the Sponsors Corporation; ("régimes de retraite d'OMERS")
"primary pension plan" means the pension plan continued by subsection 3 (1); ("régime de retraite principal")
"retirement compensation arrangement" means retirement compensation arrangement as defined in subsection 248 (1) of the Income Tax Act (Canada); ("convention de retraite")
"Sponsors Corporation" means the corporation established by subsection 22 (1); ("Société de promotion")
"supplemental plan" means a pension plan that is a supplemental plan as defined in the regulations under the Income Tax Act (Canada). ("régime complémentaire")
Interpretation, pension matters
(2) Words and expressions used in this Act that relate to pension plans and pension funds have the same meaning as under the Pension Benefits Act, unless the context requires otherwise.
Same, municipal matters
(3) Words and expressions used in this Act that relate to municipal matters have the same meaning as under the Municipal Act, 2001, unless the context requires otherwise.
Police and fire sectors
(4) A reference in this Act to persons who are employed in the police and fire sectors is a reference to OMERS pension plan members who are members of a police force as defined in section 2 of the Police Services Act or who are employed as firefighters as defined in subsection 1 (1) of the Fire Protection and Prevention Act, 1997 or as paramedics as defined in subsection 1 (1) of the Ambulance Act.
Ontario Municipal Employees
Retirement System
OMERS continued
2. The Ontario Municipal Employees Retirement System is continued and is composed of the OMERS pension plans.
Primary pension plan
3. (1) The pension plan that is governed by the Ontario Municipal Employees Retirement System Act immediately before that Act is repealed is continued as the primary pension plan.
Transition: terms and conditions
(2) On the day the Ontario Municipal Employees Retirement System Act is repealed, the terms and conditions of the primary pension plan are the terms and conditions that were in effect under that Act immediately before it was repealed.
Pension funds
(3) The pension funds that are governed by the Ontario Municipal Employees Retirement System Act immediately before that Act is repealed are continued.
Retirement compensation arrangements
(4) Any retirement compensation arrangements that provide benefits for members and former members of the OMERS pension plans that are in effect on the day the Ontario Municipal Employees Retirement System Act is repealed are continued and have the terms and conditions that were in effect immediately before that Act was repealed.
Supplemental plans
4. (1) The Sponsors Corporation may establish one or more supplemental plans for the purpose of providing optional benefits to members and former members of the primary pension plan who are, or were, employed in the police and fire sectors or to other members and former members of the primary pension plan.
Restriction on use of primary pension plan assets
(2) No assets of the primary pension plan shall be used for the purpose of paying any optional benefit under a supplemental plan or funding the payment of any other liability of a supplemental plan.
Employer Participation
in the Pension Plans
Employers generally
5. (1) Each of the following employers may participate in the OMERS pension plans in respect of its eligible employees:
1. A municipality.
2. A local board other than a hospital board that operates a public hospital, within the meaning of the Public Hospitals Act, on behalf of a municipality.
3. A conservation authority within the meaning of the Conservation Authorities Act.
4. A district social services administration board within the meaning of the District Social Services Administration Boards Act.
5. An area services board established under Part II of the Northern Services Boards Act.
6. An association of municipalities or local boards.
7. An association of the officials or employees of municipalities or local boards.
8. The Crown.
9. The Sponsors Corporation.
10. The Administration Corporation.
Same
(2) A municipality may participate in the OMERS pension plans in respect of its councillors.
Eligible employees
(3) For the purposes of this section and section 7,
"eligible employee" means, in respect of an employer, a person who is employed by the employer but not a person who contributes to a pension plan under the Ontario Public Service Employees' Union Pension Act, 1994, the Public Service Pension Act or the Teachers' Pension Act.
Associated employers
6. (1) Each of the following employers may participate in the OMERS pension plans on such conditions as may be agreed upon by the employer and the Sponsors Corporation:
1. A person who, under an agreement with a municipality or local board or under an Act, provides a service, program or thing to a person that the municipality or local board is authorized to provide to the person.
2. A corporation incorporated in accordance with section 142 of the Electricity Act, 1998 for the purpose of generating, transmitting, distributing or retailing electricity.
3. A person or association of persons that, immediately before the repeal of the Ontario Municipal Employees Retirement System Act, was designated by the Lieutenant Governor in Council for the purposes of clause (c) of the definition of "associated employer" in subsection 1 (1) of that Act or that, immediately before the repeal of that Act, was deemed by another Act to have been so designated.
Eligible employees of associated employers
(2) The following employees of an associated employer are eligible to be members of the OMERS pension plans:
1. For an employer described in paragraph 1 of subsection (1), an employee whose duties relate primarily to the provision of the service, program or thing provided by the employer on behalf of the municipality or local board.
2. For an employer described in paragraph 2 of subsection (1), an employee whose duties relate primarily to the activities referred to in that paragraph.
3. For an employer described in paragraph 3 of subsection (1), every employee.
Same
(3) For the purposes of paragraphs 1 and 2 of subsection (2), the employee's duties may include administrative activities relating to the provision of the service, program or thing or the performance of the employer's duties, as the case may be.
Participation in other plans
7. (1) Despite any other Act, a municipality or a local board shall not make a contribution for the provision of a pension to any of its eligible employees unless the contribution is made under the Canada Pension Plan or to an OMERS pension plan.
Approved pension plans
(2) Despite subsection (1), a municipality or local board may make a contribution under another pension plan for the provision of a pension to an eligible employee if all of the following circumstances exist:
1. The pension plan was established by a municipality or local board under a general or special Act and was in effect on the applicable date described in paragraph 4.
2. The employee became employed by the municipality or local board before the applicable date described in paragraph 4.
3. The contribution is made in respect of the employee's service before he or she becomes entitled to be a member of the primary pension plan.
4. For a contribution made under a collective agreement, the applicable date is the earlier of July 1, 1968 or the date on which the agreement is terminated. For any other contribution, the applicable date is July 1, 1965.
Interpretation
(3) A payment by a municipality or local board to an associated employer with respect to the service, program or thing provided on its behalf by the employer does not constitute a contribution for the provision of a pension to an employee of that employer.
Termination of participation
8. (1) An employer who is described in paragraphs 1 to 7 or paragraph 9 or 10 of subsection 5 (1) is not entitled to terminate its participation in an OMERS pension plan unless it has the consent of the Sponsors Corporation.
By-law
(2) An employer who is described in paragraphs 1 to 7 or paragraph 9 or 10 of subsection 5 (1) shall not pass a by-law providing for the termination of its participation in an OMERS pension plan except upon such terms as may be established by the Sponsors Corporation.
Restrictions Affecting the Pension Plans
Defined benefit plan
9. The primary pension plan must be a defined benefit plan.
Optional increases in pension benefits
10. An optional pension benefit for members of the primary pension plan in respect of which the annual benefit accrual rate is greater than 2.0 per cent and less than or equal to 2.33 per cent must be implemented using a supplemental plan and not the primary pension plan.
Optional increases, police and fire sectors
11. (1) Despite any other provision of this Act, the Administration Corporation shall amend the OMERS pension plans to provide optional increases in benefits for members of the primary pension plan who are employed in the police and fire sectors and establish the contribution rates for the benefits.
Same
(2) The amendment required by this section shall be made within 24 months after the day this section comes into force.
Method of calculating benefits
(3) A supplemental plan established under this section shall make provision for all of the following:
1. An annual benefit accrual rate that is 2.33 per cent for members under the supplemental plan.
2. The payment of pension benefits to members of the supplemental plan in which the annual amount of pension is not reduced because a member retires before the member's normal retirement age of 65 years if, at the date of retirement, the sum of the member's age, counted in full and part years, plus the member's service, counted in full and part years, equals at least 85 years.
3. The pension benefits payable to members under circumstances described in paragraph 2 shall begin to be paid not more than 10 years before the member's normal retirement age.
4. The payment of pension benefits to members of the supplemental plan in which the annual amount of pension is not reduced because a member retires before the member's normal retirement age of 60 years if, at the date of retirement, the sum of the member's age, counted in full and part years, plus the member's service, counted in full and part years, equals at least 80 years.
5. The pension benefit payable to members under circumstances described in paragraph 4 shall begin to be paid not more than 10 years before the member's normal retirement age.
6. The pension benefit payable to members of the supplemental plan is calculated based on the average annual earnings of the members over a period of service of three years, but the average may be less than three years for members with service of less than three years.
7. The pension benefit payable to members of the supplemental plan is calculated based on the average annual earnings of the members over a period of service of four years, but the average may be less than four years for members with service of less than four years.
8. The option for a member to elect to purchase credit in the supplemental plan for a benefit described in paragraph 1, 2, 4, 6 or 7 in respect of the member's service before the date the employer of the member consents to provide the benefit under the supplemental plan.
Consent of employer
(4) A supplemental plan established under this section shall not authorize a contribution in respect of or provide for a type of benefit for any members who are employees of an employer participating in the OMERS pension plans unless the employer consents to provide that type of benefit to the members.
Same
(5) In a consent under subsection (4), an employer may consent to provide a benefit or benefits under only one of the following paragraphs:
1. A benefit described in paragraph 1 of subsection (3).
2. The benefits described in paragraphs 2 and 4 of subsection (3).
3. A benefit described in paragraph 6 of subsection (3).
4. A benefit described in paragraph 7 of subsection (3).
Same
(6) An employer may consent to provide an additional benefit listed in any of paragraphs 1 to 4 of subsection (5) that the employer has not previously consented to provide, but not until at least 36 months has passed since the employer previously consented to provide an additional benefit under subsection (5) or this subsection.
Amount of benefit under supplemental plan
(7) The amount of a benefit available to a member under the primary pension plan shall be deducted from the amount of a benefit available to a member under a supplemental plan described in subsection (3) and the cost of credit or contributions for the benefit under the supplemental plan shall be reduced accordingly.
Election to purchase credit for benefit in supplemental plan
(8) A member may elect to purchase credit for a benefit in a supplemental plan described in paragraph 8 of subsection (3) only if,
(a) the member is employed by an employer participating in the OMERS pension plans who has consented to provide the benefit;
(b) the member makes the election within 24 months after the date the employer consented to provide the benefit; and
(c) the member makes the election to purchase credit for the benefit subject to any conditions determined by the Administration Corporation on the advice of the actuary.
Same
(9) Subject to subsection (7), the purchase cost of a credit for a benefit described in paragraph 8 of subsection (3) shall be equal to the present value of that benefit.
Employer contributions
12. (1) The total amount of the contributions payable to any of the OMERS pension plans by an employer for a year must equal the total amount of the contributions payable to the pension plan for the year by the employer's employees.
Exception
(2) Despite subsection (1), the Sponsors Corporation may amend any of the OMERS pension plans to authorize unequal amounts of contributions to be made by employers and employees for one or more years if,
(a) after the amendment, the contribution rates for employers and employees for each class of benefit under the OMERS pension plans are equal; and
(b) the Sponsors Corporation is of the opinion that it is fair and reasonable to make the amendment.
Application
(3) Subsection (1) does not apply in respect of contributions payable to a pension plan for a year if,
(a) the amount of the contributions are in accordance with the terms and conditions of the pension plan as it was governed by the Ontario Municipal Employees Retirement System Act immediately before that Act was repealed, and those terms and conditions have not been amended by the Sponsors Corporation; or
(b) the only reason that the total amount of the contributions payable by the employer does not equal the total amount of the contributions payable by the employer's employees is because one or more employees made contributions to a supplemental plan in respect of pensionable service described in paragraph 8 of subsection 11 (3).
Cap on contributions by employer for increased benefits
13. (1) If, under a supplemental plan, a municipality or local board may provide an optional pension benefit for its employees in respect of which the annual benefit accrual rate is greater than 2.0 per cent and less than or equal to 2.33 per cent (the "increased benefit"), the municipality or local board may make contributions to the plan for the increased benefit in respect of the employees' service on or after the date on which the municipality or local board decides to provide the increased benefit, but not in respect of service before that date.
Same
(2) Nothing in subsection (1) prevents an employee from making payments to an OMERS pension plan in respect of the service of the employee before the date on which the municipality or local board decides to provide the increased benefit.
Contribution rate, benefits under multiple plans
14. In determining the required contribution rate for the primary pension plan and for any retirement compensation arrangement to be paid by the members of the primary pension plan who are also members of a supplemental pension plan and by their employers, the actuary shall use best estimate assumptions to assess the likely impact of the benefits provided by the supplemental plan on the required contribution rate that would otherwise be payable.
Reserve to stabilize contribution rates
15. (1) The Sponsors Corporation shall not amend the primary pension plan in a manner which reduces contributions or increases going concern liabilities unless, after the amendment, the ratio of the market value of the assets of the pension fund to the going concern liabilities is not less than 1.05 and the ratio of the solvency assets to the solvency liabilities is not less than 1.00.
Exception
(2) Subsection (1) does not apply with respect to an amendment that is required to comply with a federal or provincial law or an amendment that does not increase going concern liabilities by more than 1 per cent.
Governance and Administration
of the Pension Plans
Pension plan governance
16. (1) The Sponsors Corporation shall determine the terms and conditions of the OMERS pension plans, subject to the restrictions set out in this Act.
Information
(2) The Administration Corporation shall give the Sponsors Corporation such information as the Sponsors Corporation may reasonably request for the purpose of carrying out its objects under this Act.
Pension plan administration
17. (1) The Administration Corporation shall act as administrator of the OMERS pension plans and trustee of the pension funds.
Actuarial assumptions
(2) The actuarial methods and assumptions to be used for the purposes of administering the pension plans and pension funds are to be determined by the Administration Corporation, based upon recommendations from the actuary.
Pension plan amendments
18. The Sponsors Corporation may amend the OMERS pension plans, including the contribution rates for employees, subject to the restrictions set out in this Act.
Actuary
19. (1) The Administration Corporation shall appoint a Fellow of the Canadian Institute of Actuaries to act as the actuary for the OMERS pension plans.
Reports and recommendations
(2) The actuary shall give the Administration Corporation such information and reports as the Administration Corporation may request, and shall make such recommendations to the Administration Corporation as the actuary considers advisable for the proper administration of the pension plans.
Auditor
20. The Administration Corporation shall appoint one or more persons licensed under the Public Accounting Act, 2004 to audit the accounts and transactions of the OMERS pension plans each year and to express an opinion on the financial statements for the pension plans based on the audit.
Annual report
21. (1) Every year, the Administration Corporation shall prepare a report on the affairs of the OMERS pension plans during the preceding year and the report must contain a copy of the financial statements as certified by the auditor.
Same
(2) The Administration Corporation shall give a copy of the annual report to every employer participating in the pension plans and to any member or former member of the plans who requests it.
Sponsors Corporation
Sponsors Corporation established
22. (1) A corporation to be known in English as the OMERS Sponsors Corporation and in French as Société de promotion d'OMERS is established as a corporation without share capital and is composed of its members.
Status
(2) The Sponsors Corporation is not a Crown agency and it is not a local board as defined in subsection 1 (1) of the Municipal Act, 2001.
Corporate matters
(3) Section 132 (conflict of interest), subsection 134 (1) (standard of care) and section 136 (indemnification) of the Business Corporations Act apply, with necessary modifications, to the Sponsors Corporation and its members.
Same
(4) The Corporations Act and the Corporations Information Act do not apply to the Sponsors Corporation.
Composition
23. (1) The composition of the Sponsors Corporation and the method of choosing its members is as specified by by-law.
Initial composition
(2) Despite subsection (1), the composition of the Sponsors Corporation is determined as follows for the following periods of time:
1. The composition of the Sponsors Corporation is as determined under section 36 for the period commencing on the day that subsection 22 (1) comes into force and ending immediately before the first anniversary of that day or when the Sponsors Corporation passes a by-law under subsection (1), whichever is earlier.
2. If the Sponsors Corporation has not passed a by-law under subsection (1) on or before the day that is the first anniversary of the day that subsection 22 (1) comes into force, the composition of the Sponsors Corporation is as determined under section 37 for the period commencing on the first anniversary and ending when the Sponsors Corporation passes a by-law under subsection (1).
Eligibility
(3) A person who is a member of the Administration Corporation is not eligible to hold office as a member of the Sponsors Corporation or to be appointed to any committee established for the purpose of advising the Sponsors Corporation.
Term of office
(4) The term of office of each member of the Sponsors Corporation is as determined by by-law.
Remuneration and expenses
(5) Members of the Sponsors Corporation are to be paid such remuneration and expenses as may be authorized by by-law.
Objects
24. The following are objects of the Sponsors Corporation:
1. To make decisions about the design of benefits to be provided by, and contributions to be made to, the OMERS pension plans.
2. To perform such other duties as may be provided under this Act.
Powers
25. (1) The Sponsors Corporation has the capacity, rights, powers and privileges of a natural person for carrying out its objects, subject to the restrictions set out in this Act.
Same
(2) For furthering its objects and without limiting the generality of subsection (1), the Sponsors Corporation may,
(a) make decisions about the design of the OMERS pension plans and make amendments to the OMERS pension plans;
(b) set contribution rates under the pension plans;
(c) decide whether to file a valuation more frequently than is required under the Pension Benefits Act;
(d) receive reports from the Administration Corporation.
By-laws
(3) The Sponsors Corporation may pass by-laws and resolutions regulating its proceedings and for the conduct and management of its affairs.
Procedural and other requirements for decisions
26. (1) A decision of the Sponsors Corporation requires an affirmative vote of a majority of its members.
Specified change
(2) In subsections (3) and (6),
"specified change" means,
(a) a change in benefits for members of any of the OMERS pension plans,
(b) a change in the contribution rate for members or participating employers, or
(c) the establishment of, or a change to, a reserve to stabilize contribution rates.
Decision about a specified change
(3) Despite subsection (1), a decision respecting a specified change is not valid unless it is made in one of the following ways:
1. At a meeting called for the purpose of considering the matter, the Sponsors Corporation decides to make the specified change and passes a by-law providing for the specified change by an affirmative vote of two-thirds of its members.
2. At a meeting called for the purpose of considering the matter, the Sponsors Corporation decides on an affirmative vote of a majority of its members to refer the matter for consideration under the supplementary decision-making mechanisms described in subsection (4) or (5) and, using those mechanisms, the decision is made with respect to the specified change.
Supplementary decision-making mechanisms
(4) The Sponsors Corporation may, by by-law, establish supplementary mechanisms for making decisions about matters that are considered during its meetings.
Initial mechanisms
(5) Despite subsection (4), on the day this section comes into force, the supplementary decision-making mechanisms are those set out in section 42.
Rules for arbitration
(6) If the by-law establishing supplementary decision-making mechanisms provides for arbitration, the following rules apply with respect to the arbitration:
1. The arbitrator shall conduct the arbitration in accordance with the Arbitrations Act, 1991 and for that purpose the matter referred to the arbitrator shall be deemed to have been submitted for arbitration under an agreement and the members of the Sponsors Corporation shall be deemed to be parties to the agreement.
2. When deciding a matter relating to a specified change, the arbitrator shall consider the following matters:
i. The legal requirements relating to the pension plans and their administration.
ii. The actuarial valuation of each of the OMERS pension plans prepared by the actuary for the purposes of the Pension Benefits Act.
iii. The advice of the Administration Corporation to the Sponsors Corporation and to the arbitrator concerning the cost of the specified change.
iv. The economy of Ontario, the prevailing economic conditions and the overall financial state of the employers participating in the OMERS plans.
3. The arbitrator may make reasonable requests for information and advice from the Administration Corporation and the Administration Corporation shall comply with the requests.
4. The arbitrator shall not make a decision to increase benefits under an OMERS pension plan if the decision, combined with all other decisions made by an arbitrator in the previous 36 months to increase benefits under the plan, would result in a total increase to the contribution rate for the plan for members or participating employers of more than 0.5 per cent.
5. The arbitrator's decision with respect to the terms and conditions of any of the OMERS pension plans shall be deemed to be a decision of the Sponsors Corporation to amend the pension plan, or a decision not to amend the plan, as the case may be.
Recovery of costs
27. The Sponsors Corporation may require the Administration Corporation to reimburse it from any pension or other fund for any of its costs that in the opinion of the Administration Corporation may lawfully be paid out of the fund.
Fees to fund other activities
28. (1) The Sponsors Corporation may, by by-law, require the employers who participate in an OMERS pension plan and the members of an OMERS pension plan to pay a fee for the purpose of funding any of the Sponsors Corporation's costs that may not lawfully be paid out of a pension fund.
Same
(2) The types of costs that the Sponsors Corporation may require funding for include, but are not limited to,
(a) its expenses incurred in connection with the use of supplementary decision-making mechanisms referred to in section 26, including actuarial or consulting fees necessary for those purposes; and
(b) the expenses incurred for collecting or administering the fees required under subsection (1).
Amount of fee
(3) The amount of the fee payable by each employer or member is determined by the Sponsors Corporation and is a debt due to it on the date specified by the Sponsors Corporation.
Collection
(4) The Sponsors Corporation may ask the Administration Corporation to collect the fees on its behalf and remit them to the Sponsors Corporation at the times and in the manner specified by the Sponsors Corporation.
Same
(5) The Sponsors Corporation shall reimburse the Administration Corporation for its costs of complying with a request under subsection (4).
Separate fund
(6) The Sponsors Corporation shall establish a separate fund for fees required under subsection (1) and shall pay the fees into the fund.
Same
(7) The money in the fund may be spent for the purpose described in subsection (1) and for no other purpose.
Agreements re other pension plans
29. (1) The Sponsors Corporation may enter into one or more agreements under which the Administration Corporation is required to act as agent of the administrator of a pension plan that is not an OMERS pension plan or to manage a pension fund for such a pension plan.
Same
(2) The agreement must provide that the costs of the Administration Corporation are payable from that plan or fund.
Administration Corporation
(3) The Sponsors Corporation may enter into an agreement described in subsection (1) only if the Administration Corporation has agreed to act as an agent of the administrator of the pension plan or has agreed to manage the pension fund for the pension plan, as applicable, in accordance with the terms of the agreement.
Investment of assets
(4) The assets of the plan or fund may be invested together with the assets of the pension fund for the primary pension plan, and the return on the assets that are invested under the agreement is to be determined in accordance with the agreement.
Annual audit
30. The Sponsors Corporation shall appoint one or more persons licensed under the Public Accounting Act, 2004 to audit its accounts and transactions each year and to express an opinion on its financial statements based on the audit.
Annual report
31. (1) Every year, the Sponsors Corporation shall prepare a report on its affairs during the preceding year and the report must contain a copy of its financial statements as certified by the auditor.
Same
(2) The Sponsors Corporation shall give a copy of the annual report to every employer participating in the OMERS pension plans and to any member or former member of the plans who requests it.
Administration Corporation
Administration Corporation continued
32. (1) The Ontario Municipal Employees Retirement Board is continued as a corporation without share capital under the name OMERS Administration Corporation and in French as Société d'administration d'OMERS and is composed of its members.
Status
(2) The Administration Corporation is not a Crown agency and it is not a local board as defined in subsection 1 (1) of the Municipal Act, 2001.
Corporate matters
(3) Section 132 (conflict of interest), subsection 134 (1) (standard of care) and section 136 (indemnification) of the Business Corporations Act apply, with necessary modifications, to the Administration Corporation and its members.
Same
(4) The Corporations Act and the Corporations Information Act do not apply to the Administration Corporation.
Composition
33. (1) The composition of the Administration Corporation and the method of choosing its members is as specified by by-law of the Sponsors Corporation.
Same
(2) Despite subsection 26 (1), a decision of the Sponsors Corporation to pass a by-law under subsection (1) requires an affirmative vote of two-thirds of its members.
Transition
(3) Despite subsection (1), for the period commencing on the day that subsection 32 (1) comes into force and ending immediately before the third anniversary of that day, the composition of the Administration Corporation is as determined under section 43.
Eligibility
(4) A person who is a member of the Sponsors Corporation is not eligible to hold office as a member of the Administration Corporation or to be appointed to any committee established for the purpose of advising the Administration Corporation.
Term of office
(5) The term of office of each member of the Administration Corporation is as determined by by-law of the Sponsors Corporation.
Remuneration and expenses
(6) Members of the Administration Corporation are to be paid such remuneration and expenses as may be authorized by by-law of the Sponsors Corporation.
Objects
34. The following are the objects of the Administration Corporation:
1. To act as administrator of the OMERS pension plans and as trustee of the pension funds.
2. To advise and assist the Sponsors Corporation.
3. To act as agent of the administrator of other pension plans and to manage other pension funds in accordance with agreements authorized by section 29.
Powers
35. (1) The Administration Corporation has the capacity, rights, powers and privileges of a natural person for carrying out its objects, subject to the restrictions set out in this Act.
Same
(2) For furthering its objects and without limiting the generality of subsection (1), the Administration Corporation may,
(a) administer the OMERS pension plans, including paying pensions, making payments under retirement compensation arrangements, establishing investment policies and managing and allocating the assets of the pension plans and the assets of the Administration Corporation;
(b) provide for the actuarial valuation of the OMERS pension plans, including determining the actuarial methods and assumptions and the funding policy for the plans;
(c) provide reasonable technical support to the Sponsors Corporation, including, without limitation, providing actuarial advice and cost estimates, estimates of the impact of changes to the OMERS pension plans or other changes on contribution rates and advice with respect to any administrative or other issues arising out of proposed changes to the pension plans;
(d) provide reasonable administrative support to the Sponsors Corporation.
By-laws
(3) The Administration Corporation may pass by-laws and resolutions regulating its proceedings and for the conduct and management of its affairs.
Transitional Matters
Initial composition of the Sponsors Corporation
36. (1) On the day on which subsection 22 (1) comes into force, the Sponsors Corporation is composed of 14 persons to be appointed by the Lieutenant Governor in Council.
Term of office
(2) The term of office of a member appointed under subsection (1) expires immediately before the first anniversary of the day on which subsection 22 (1) comes into force or when the Sponsors Corporation passes a by-law under subsection 23 (1), whichever is earlier.
Chair
(3) The chair of the Sponsors Corporation is to be chosen by its members from among the members.
Subsequent composition of the Sponsors Corporation
37. (1) If the Sponsors Corporation has not passed a by-law under subsection 23 (1) on or before the first anniversary of the day that subsection 22 (1) comes into force, the composition of the Sponsors Corporation for the period commencing on that first anniversary and ending when the Sponsors Corporation passes a by-law under subsection 23 (1) is composed of the following persons to be chosen in the manner indicated:
1. Two persons to be chosen by the Association of Municipalities of Ontario.
2. One person who is representative of school boards to be chosen in accordance with subsection (2).
3. One person to be chosen by the Ontario Association of Police Services Boards.
4. One person to be chosen by the City of Toronto.
5. Two persons who are representative of other participating employers, to be chosen in accordance with subsection (3).
6. One person to be chosen by the Canadian Union of Public Employees (Ontario).
7. One person who is representative of the Canadian Union of Public Employees (Ontario), Locals 79 and 416, to be chosen in accordance with subsection (4).
8. One person to be chosen by the Police Association of Ontario.
9. One person to be chosen by the Ontario Professional Fire Fighters Association.
10. One person to be chosen by the Ontario Secondary School Teachers' Federation.
11. One person who is representative of other members of the OMERS pension plans, to be chosen in accordance with subsection (5).
12. One person who is representative of former members of the OMERS pension plans, to be chosen in accordance with subsection (6).
Representative of school boards
(2) The person referred to in paragraph 2 of subsection (1) is to be chosen by the Ontario Public School Boards' Association and his or her replacement is to be chosen by the Ontario Catholic School Trustees' Association; thereafter, the replacement is to be chosen on an alternating basis by the associations.
Representatives of other participating employers
(3) The two persons referred to in paragraph 5 of subsection (1) are to be chosen as follows by those employers who are not members of an organization described in paragraph 1, 2, 3 or 4 of subsection (1):
1. The first person is to be chosen by the employer who has the greatest number of members in the primary pension plan.
2. The second person is to be chosen by the employer who has the second-greatest number of members in the primary pension plan.
3. When a person's term of office expires, his or her replacement is to be chosen by the employer who has the next-greatest number of members in the primary pension plan on the expiry date of the person's term of office. This step is repeated when replacement persons are required until all the employers have chosen a person.
4. When all the employers have chosen a person, the next replacement is to be chosen by the employer who has the greatest number of members in the primary pension plan, and the steps described in paragraphs 2 and 3 are repeated.
Representative of CUPE (Ontario), Locals 79 and 416
(4) The person referred to in paragraph 7 of subsection (1) is to be chosen by the Canadian Union of Public Employees (Ontario), Local 79 and his or her replacement is to be chosen by the Canadian Union of Public Employees (Ontario), Local 416; thereafter, the replacement is to be chosen on an alternating basis by Locals 79 and 416.
Representatives of other members
(5) The person referred to in paragraph 11 of subsection (1) is to be chosen as follows on behalf of those members of the OMERS pension plans who are not represented, directly or indirectly, by an organization described in paragraph 6, 8, 9 or 10 of subsection (1):
1. The Sponsors Corporation shall make inquiries to determine what organizations, if any, represent any of the applicable members of the OMERS pension plans and to determine how many of those members each organization represents.
2. The Sponsors Corporation shall rank the organizations according to the number of those members that each of them represents, and the organization representing the greatest number of those members is the largest organization.
3. The Sponsors Corporation shall invite the largest organization to choose the person within the period specified by the Sponsors Corporation.
4. If the organization fails to choose a person within the specified period, the Sponsors Corporation shall invite the next-largest organization to choose the person within the period specified by the Sponsors Corporation. This step is repeated until the person has been chosen.
5. When a person's term of office expires, the Sponsors Corporation shall invite the organization that is the next-largest at the time the replacement person is required to choose the person. This step is repeated when replacement persons are required until all the organizations have been invited to choose a person.
6. When all the organizations have been invited to choose a person, the Sponsors Corporation shall invite the largest organization to choose the next replacement person, and the steps described in paragraphs 3 to 5 are repeated with necessary modifications.
Representative of former members
(6) The person referred to in paragraph 12 of subsection (1) is to be chosen as follows on behalf of former members of the OMERS pension plans:
1. The Sponsors Corporation shall make inquiries to determine what organizations, if any, represent any of the former members of the OMERS pension plans and to determine how many former members each organization represents.
2. The Sponsors Corporation shall rank the organizations according to the number of those former members that each of them represents, and the organization representing the greatest number of those members is the largest organization.
3. The Sponsors Corporation shall invite the largest organization to choose the person within the period specified by the Sponsors Corporation.
4. If the organization fails to choose a person within the specified period, the Sponsors Corporation shall invite the next-largest organization to choose the person within the period specified by the Sponsors Corporation. This step is repeated until a person is chosen.
5. When a person's term of office expires, the Sponsors Corporation shall invite the organization that is the next-largest at the time the replacement person is required to choose the person. This step is repeated when replacement persons are required until all the organizations have been invited to choose a person.
6. When all the organizations have been invited to choose a person, the Sponsors Corporation shall invite the largest organization to choose the next replacement person, and the steps described in paragraphs 3 to 5 are repeated with necessary modifications.
Term of office
(7) The term of office of a person chosen under this section is three years, unless the term is changed or the appointment of the person is terminated by a by-law passed by the Sponsors Corporation.
Vacancies
(8) If a person ceases to hold office before his or her term of office expires, the same organization that chose the person may choose his or her replacement to hold office for the remainder of the unexpired term.
Chair
(9) The chair of the Sponsors Corporation is to be chosen by the members of the Sponsors Corporation from among the members.
Weighted voting
(10) The members of the Sponsors Corporation shall have voting rights as follows:
1. The members referred to in paragraph 1 of subsection (1) shall have two votes each.
2. The member referred to in paragraph 6 of subsection (1) shall have three votes.
3. Every other member shall have one vote each.
Advisory committee on benefits, police and fire sectors
38. (1) A committee is established for the purpose of advising the Sponsors Corporation about benefits for OMERS pension plan members who are employed in the police and fire sectors and the committee is composed of eight persons to be appointed by the Sponsors Corporation.
Guidelines for appointments
(2) The Sponsors Corporation shall endeavour to make appointments under subsection (1) in accordance with the following guidelines:
1. Two persons are to be representative of the Association of Municipalities of Ontario.
2. One person is to be representative of the City of Toronto.
3. One person is to be representative of the Ontario Association of Police Services Boards.
4. One person is to be representative of the Ontario Professional Fire Fighters Association.
5. One person is to be representative of the Police Association of Ontario.
6. One person is to be representative of the Toronto Police Association.
7. One person is to be representative of members of the OMERS pension plans who are paramedics represented for collective bargaining purposes by the Canadian Union of Public Employees (Ontario) or the Ontario Public Service Employees Union.
Advisory committee on benefits, other members
39. (1) A committee is established for the purpose of advising the Sponsors Corporation about benefits for OMERS pension plan members who are not employed in the police and fire sectors and the committee is composed of 12 persons to be appointed by the Sponsors Corporation.
Guidelines for appointments
(2) The Sponsors Corporation shall endeavour to make appointments under subsection (1) in accordance with the following guidelines:
1. Three persons are to be representative of the Association of Municipalities of Ontario.
2. One person is to be representative of the City of Toronto.
3. Two persons are to be representative of employers other than the City of Toronto and employers who are members of the Association of Municipalities of Ontario.
4. Three persons are to be representative of the Canadian Union of Public Employees (Ontario).
5. Two persons are to be representative of members of the OMERS pension plans other than members who are represented for collective bargaining purposes by the Canadian Union of Public Employees (Ontario).
6. One person is to be representative of members of the OMERS pension plans who are not represented for collective bargaining purposes by the Canadian Union of Public Employees (Ontario) and not employed in the police and fire sectors.
Consolidation of terms and conditions of primary pension plan
40. (1) Within 12 months after section 32 comes into force, the Administration Corporation may prepare a consolidation of the terms and conditions of the primary pension plan and of any related retirement compensation arrangements that provide benefits to members and former members of the primary pension plan and may, for the purpose of preparing the consolidation,
(a) make such amendments to the terms and conditions of the primary pension plan and related retirement compensation arrangements as may be necessary to ensure that the terms and conditions are in accordance with the provisions of this Act; and
(b) incorporate definitions that were in the Ontario Municipal Employees Retirement System Act before that Act was repealed.
Same
(2) Despite clause (1) (a), an amendment shall be made by the Administration Corporation only if and to the extent that the amendment is necessary for the administration under this Act of the primary pension plan, the pension fund for that plan or the retirement compensation arrangements.
Meetings of the Sponsors Corporation
41. (1) This section applies until the Sponsors Corporation passes a by-law governing the circumstances in which it is required to meet.
Mandatory triennial meeting
(2) The Sponsors Corporation shall meet after the Administration Corporation gives the Sponsors Corporation the preliminary results of the most recent triennial valuation of the OMERS pension plans required under section 14 of Regulation 909 (General) made under the Pension Benefits Act, and the purpose of the meeting is to consider whether to change benefits for members or contribution rates or both for any of the pension plans.
At the request of the Administration Corporation
(3) The Sponsors Corporation shall meet if the Administration Corporation requests a meeting for any of the following reasons:
1. The Administration Corporation considers that a change to any of the OMERS pension plans may be necessary to resolve a critical issue.
2. The Administration Corporation considers that a change to any of the OMERS pension plans is necessary or appropriate for the proper administration of the pension plan in accordance with the Pension Benefits Act.
3. The Administration Corporation considers that a change to any of the OMERS pension plans is necessary or appropriate as a result of a change in a federal or provincial law.
4. The Administration Corporation considers that a change to any of the OMERS pension plans is necessary or appropriate to improve the funding of the plan.
Same
(4) The purpose of a meeting requested by the Administration Corporation is to consider the changes to the OMERS pension plans that are identified or recommended by the Administration Corporation.
Emergency meeting
(5) The Sponsors Corporation shall meet if a majority of its members requests a meeting for the purpose of dealing with an emergency.
Procedure
(6) The chair of the Sponsors Corporation shall promptly convene a meeting that is required by this section.
Supplementary decision-making mechanisms
Temporary application
42. (1) This section applies until the Sponsors Corporation passes a by-law governing the circumstances in which it is required to meet.
Specified change
(2) In this section,
"specified change" has the same meaning as in subsection 26 (2).
Mediation
(3) The Sponsors Corporation may use mediation to help its members make a decision about a specified change to an OMERS pension plan if all of the following circumstances exist:
1. A meeting of the Sponsors Corporation is called under section 41 for the purpose of considering a specified change.
2. At the meeting, a member of the Sponsors Corporation makes a proposal in writing for a specified change or for no change.
3. The Sponsors Corporation does not, within 30 days after the meeting at which the proposal is first considered, decide by an affirmative vote of two-thirds of its members to accept the proposal, with or without amendments or decide by an affirmative vote of a majority of its members to reject it.
Referral for mediation
(4) If a proposal is neither accepted, with or without amendments, nor rejected within the 30-day period in accordance with subsection (3), the Sponsors Corporation may, by an affirmative vote of a majority of its members, refer the proposal for mediation.
Choice of mediator
(5) The mediator may be chosen in any of the following ways:
1. At any meeting held before the 30-day period expires, the Sponsors Corporation may appoint the mediator or may determine the method for choosing the mediator.
2. If the Sponsors Corporation does not appoint the mediator or determine the method for choosing the mediator, the chair of the Sponsors Corporation shall choose the mediator in accordance with subsection (6) and make the appointment on behalf of the Sponsors Corporation.
3. If the Sponsors Corporation determines the method for choosing the mediator but no mediator is appointed within 30 days after the meeting at which the determination was made, the chair of the Sponsors Corporation shall choose the mediator in accordance with subsection (6) and make the appointment on behalf of the Sponsors Corporation.
Selection by chair of Sponsors Corporation
(6) If the chair of the Sponsors Corporation is required to choose the mediator, the following process applies:
1. The chair shall prepare a list of five persons who are willing to act as mediator.
2. He or she shall invite each member of the Sponsors Corporation to identify up to three of those persons as his or her preferred candidates for mediator, before the deadline specified by the chair.
3. He or she shall choose as mediator one of the persons identified as a preferred candidate. If there are no preferred candidates identified before the deadline, he or she may choose any person that he or she considers suitable on the list.
Mediator's role
(7) The mediator shall endeavour to assist the members of the Sponsors Corporation to reach a decision about the proposal.
Mediator's report
(8) Within 30 days after being appointed, the mediator shall give a written report to the Sponsors Corporation concerning the issues addressed during the mediation and the results of the mediation and may make recommendations concerning the proposal.
Extension
(9) Despite subsection (8), the mediator may extend the deadline for the report by 14 days if, in his or her opinion, continued mediation is reasonably likely to enable the members of the Sponsors Corporation to reach a decision about the proposal.
Distribution of report
(10) Every member of the Sponsors Corporation is entitled to receive a copy of the mediator's report.
Decision by Sponsors Corporation
(11) The Sponsors Corporation may decide by an affirmative vote of two-thirds of its members to accept the proposal, with or without amendments, or may decide by an affirmative vote of a majority of its members to reject it.
Arbitration upon request
(12) If the Sponsors Corporation neither accepts, with or without amendments, nor rejects the mediator's report within 30 days after its first meeting after receiving the report, the Sponsors Corporation may, by an affirmative vote of a majority of its members, refer the matter for arbitration.
Destruction of copies
(13) If the matter is referred for arbitration, every copy of the mediator's report must be destroyed.
Choice of arbitrator
(14) The arbitrator may be chosen in any of the following ways:
1. When the matter is referred for arbitration, the Sponsors Corporation may appoint the arbitrator or may determine the method for choosing the arbitrator.
2. If the Sponsors Corporation does not appoint the arbitrator or determine the method for choosing the arbitrator, the chair of the Sponsors Corporation shall choose the arbitrator and make the appointment on behalf of the Sponsors Corporation.
3. If the Sponsors Corporation determines the method for choosing the arbitrator but no arbitrator is appointed within 30 days after the meeting at which the determination was made, the chair of the Sponsors Corporation shall choose the arbitrator and make the appointment on behalf of the Sponsors Corporation.
Same
(15) A person appointed as a mediator under subsection (5) or (6) in respect of a matter may also be appointed as arbitrator with respect to the same, or a related, matter.
Scope of arbitration
(16) The matter that is referred to arbitration must relate to a specified change only and the wording of the matter may be determined in either of the following ways:
1. The Sponsors Corporation may determine the wording.
2. If the Sponsors Corporation does not determine the wording within 30 days after the referral is made, the member who requested the arbitration may determine it.
Conduct and effect of arbitration
(17) Subsection 26 (6) applies with respect to the arbitration.
Transitional composition of the Administration Corporation
43. (1) On the day on which subsection 32 (1) comes into force, the terms of office of the persons who hold office as members of the Ontario Municipal Employees Retirement Board immediately before that day are terminated and the Administration Corporation is composed of the following members:
1. Two persons to be chosen by the Association of Municipalities of Ontario.
2. One person to be chosen by the City of Toronto.
3. One person who is representative of school boards to be chosen in accordance with subsection (3).
4. One person to be chosen by the Ontario Association of Police Services Boards.
5. Two persons who are representative of the other participating employers, to be chosen in accordance with subsection (4).
6. Two persons to be chosen by the Canadian Union of Public Employees (Ontario).
7. One person to be chosen by the Police Association of Ontario.
8. One person to be chosen by the Ontario Professional Fire Fighters Association.
9. One person who is representative of other members of the OMERS pension plans, to be chosen in accordance with subsection (5).
10. One person to be chosen by the Association of Municipal Managers, Clerks and Treasurers of Ontario.
11. One person who is representative of former members of the OMERS pension plans, to be chosen in accordance with subsection (6).
First appointments
(2) Despite subsections (1), (3), (4), (5) and (6), the Lieutenant Governor in Council shall appoint the first members of the Administration Corporation and shall specify in the appointment under which paragraph of subsection (1) each appointment is being made.
Representative of school boards
(3) The person referred to in paragraph 3 of subsection (1) is to be chosen by the Ontario Public School Boards' Association and his or her replacement is to be chosen by the Ontario Catholic School Trustees' Association; thereafter, the replacement is to be chosen on an alternating basis by the associations.
Representatives of other participating employers
(4) The two persons referred to in paragraph 5 of subsection (1) are to be chosen as follows by those employers who are not members of an organization described in paragraph 1 or 4 of subsection (1) or in subsection (3):
1. The first person is to be chosen by the employer who has the greatest number of members in the primary pension plan.
2. The second person is to be chosen by the employer who has the second-greatest number of members in the primary pension plan.
3. When the term of office of the first person expires, his or her replacement is to be chosen by the employer who has the third-greatest number of members in the primary pension plan on the expiry date of the first person's term.
4. The subsequent replacement for a member is to be chosen by the employer who has the next-greatest number of members in the primary pension plan, until all employers have chosen a person.
5. When all employers have chosen a person, the next replacement is to be chosen by the employer who has the greatest number of members in the primary pension plan, and the steps described in paragraphs 2 to 4 are repeated.
Representative of other members
(5) The person referred to in paragraph 9 of subsection (1) is to be chosen as follows on behalf of those members of the OMERS pension plans who are not represented, directly or indirectly, by an organization described in paragraph 6, 7 or 8 of subsection (1):
1. The Administration Corporation shall make inquiries to determine what organizations, if any, represent any of the applicable members of the OMERS pension plans and to determine how many of those members each organization represents.
2. The Administration Corporation shall rank the organizations according to the number of those members that each of them represents, and the organization representing the greatest number of those members is the largest organization.
3. The Administration Corporation shall invite the largest organization to choose the person within the period specified by the Administration Corporation.
4. If the organization fails to choose a person within the specified period, the Administration Corporation shall invite the next-largest organization to choose the person within the period specified by the Administration Corporation. This step is repeated until the person has been chosen.
5. When a person's term of office expires, the Administration Corporation shall invite the organization that is the next-largest at the time the replacement person is required to choose the person. This step is repeated when replacement persons are required until all the organizations have been invited to choose a person.
6. When all the organizations have been invited to choose a person, the Administration Corporation shall invite the largest organization to choose the next replacement person, and the steps described in paragraphs 3 to 5 are repeated with necessary modifications.
Representative of former members
(6) The person referred to in paragraph 11 of subsection (1) is to be chosen as follows on behalf of former members of the OMERS pension plans:
1. The Administration Corporation shall make inquiries to determine what organizations, if any, represent any of the former members of the OMERS pension plans and to determine how many former members each organization represents.
2. The Administration Corporation shall rank the organizations according to the number of those former members that each of them represents, and the organization representing the greatest number of those members is the largest organization.
3. The Administration Corporation shall invite the largest organization to choose the person within the period specified by the Administration Corporation.
4. If the organization fails to choose a person within the specified period, the Administration Corporation shall invite the next-largest organization to choose the person within the period specified by the Administration Corporation. This step is repeated until a person is chosen.
5. When a person's term of office expires, the Administration Corporation shall invite the organization that is the next-largest at the time the replacement person is required to choose the person. This step is repeated when replacement persons are required until all the organizations have been invited to choose a person.
6. When all the organizations have been invited to choose a person, the Administration Corporation shall invite the largest organization to choose the next replacement person, and the steps described in paragraphs 3 to 5 are repeated with necessary modifications.
Term of office
(7) The term of office of the members of the Administration Corporation is three years.
Same
(8) Despite subsection 33 (5) and subsection (7) of this section, each of the first members of the Administration Corporation appointed under subsection (2) shall be appointed to hold office for a period, not to exceed three years, as specified by the Lieutenant Governor in Council.
Vacancy
(9) If a person appointed under subsection (2) ceases to hold office before his or her term of office expires, the person or organization that chooses the members of the Administration Corporation under the paragraph of subsection (1) under which the first member was appointed shall choose his or her replacement to hold office for the remainder of the unexpired term.
Same
(10) If a person who was not appointed under subsection (2) or (9) ceases to hold office before his or her term of office expires, the same person or organization that chose the person may choose his or her replacement to hold office for the remainder of the unexpired term.
Chair
(11) The chair of the Administration Corporation is to be chosen by the members of the Administration Corporation from among the members.
Transitional amendments to OMERS pension plans
44. (1) The Lieutenant Governor in Council may make regulations governing the establishment and terms and conditions of supplemental plans for the purposes of section 4, including,
(a) prescribing the manner for calculating the amount of pension benefits provided under the supplemental plans;
(b) prescribing the requirements to be satisfied for persons to be eligible to be members of the supplemental plans;
(c) establishing the rate or amount of contributions to be made under the supplemental plans or prescribing the manner for determining the rate or amount of contributions.
Repeal
(2) This section is repealed on the third anniversary of the day this section comes into force.
Revocation of regulation
(3) Any regulation made under this section is revoked on the day this section is repealed.
Consequential Amendments and Repeals
Child and Family Services Act
45. Subsection 20 (2) of the Child and Family Services Act is amended by striking out "Ontario Municipal Employees Retirement System Act" and substituting "Ontario Municipal Employees Retirement System Act, 2006".
City of Toronto Act, 1997 (No. 2)
46. (1) Section 9 of the City of Toronto Act, 1997 (No. 2) is amended by striking out "Ontario Municipal Employees Retirement System Act" wherever it appears and substituting in each case "Ontario Municipal Employees Retirement System Act, 2006".
(2) Subsection 10 (1) of the Act is amended by striking out "Despite section 9 of the Ontario Municipal Employees Retirement System Act" at the beginning and substituting "Despite section 7 of the Ontario Municipal Employees Retirement System Act, 2006".
(3) Subsection 10 (2) of the Act is amended by striking out "The Ontario Municipal Employees Retirement System Act" at the beginning and substituting "The Ontario Municipal Employees Retirement System Act, 2006".
(4) Subsection 13 (2) of the Act is amended by striking out " Ontario Municipal Employees Retirement System Act " and substituting " Ontario Municipal Employees Retirement System Act, 2006 ".
(5) Subsection 13 (3) of the Act is amended by adding at the end "as that Regulation read immediately before the repeal of that Act".
(6) Clause 60 (11) (b) of the Act is amended by striking out "for the purposes of the Ontario Municipal Employees Retirement System Act" and substituting "for the purposes of the Ontario Municipal Employees Retirement System Act, 2006".
(7) Clause 66 (6) (a) of the Act is amended by striking out " Ontario Municipal Employees Retirement System Act " and substituting " Ontario Municipal Employees Retirement System Act, 2006 ".
Education Act
47. Subsection 178 (1) of the Education Act is amended by striking out "Ontario Municipal Employees Retirement System Act" and substituting "Ontario Municipal Employees Retirement System Act, 2006".
GO Transit Act, 2001
48. Subsection 23 (3) of the GO Transit Act, 2001 is amended by striking out "shall be deemed to be an employer under the Ontario Municipal Employees Retirement System Act" and substituting "shall be deemed to be a local board for the purposes of the Ontario Municipal Employees Retirement System Act, 2006".
Municipal Act, 2001
49. (1) Subsections 276 (1) and (2) of the Municipal Act, 2001 are repealed.
(2) Subsection 276 (3) of the Act is amended by striking out " Ontario Municipal Employees Retirement System Act " and substituting " Ontario Municipal Employees Retirement System Act, 2006 ".
(3) Subsections 276 (4) and (5) of the Act are repealed.
(4) Subsection 276 (6) of the Act is amended by adding at the end "other than pensions provided under the Ontario Municipal Employees Retirement System Act, 2006".
(5) Clause 464 (a) of the Act is amended by striking out "or to the Ontario Municipal Employees Retirement Fund" and substituting "or to the pension fund for the primary pension plan under the Ontario Municipal Employees Retirement System Act, 2006".
Municipal Property Assessment Corporation Act, 1997
50. Subsection 7 (4) of the Municipal Property Assessment Corporation Act, 1997 is repealed and the following substituted:
Employees pensions
(4) The Corporation shall be deemed to be a local board for the purposes of the Ontario Municipal Employees Retirement System Act, 2006 but section 7 of that Act does not apply with respect to the Corporation and its employees.
Niagara Escarpment Planning and Development Act
51. (1) Subsection 5 (6) of the Niagara Escarpment Planning and Development Act is amended by striking out "and may designate the chair as an employee and the Commission as an employer for the purpose of the Ontario Municipal Employees Retirement System Act".
(2) Section 5 of the Act is amended by adding the following subsection:
Pension plan
(9.1) The Commission shall be deemed to be a local board for the purposes of the Ontario Municipal Employees Retirement System Act, 2006 and the chair shall be deemed to be an employee of the Commission for the purposes of that Act.
Northern Services Boards Act
52. Subsection 39 (16) of the Northern Services Boards Act is repealed.
Ontario Municipal Employees Retirement System Act
53. The Ontario Municipal Employees Retirement System Act is repealed.
Social Housing Reform Act, 2000
54. (1) Subsection 52 (11) of the Social Housing Reform Act, 2000 is repealed and the following substituted:
Pension plan
(11) A transferee to whom employees have been transferred by a transfer order shall provide the transferred employees with pension benefits under the Ontario Municipal Employees Retirement System Act, 2006 and, for that purpose, the transferee shall be deemed to be a local board for the purposes of that Act.
(2) Subsection 140 (6) of the Act is repealed and the following substituted:
Employees pensions
(6) The corporation shall be deemed to be a local board for the purposes of the Ontario Municipal Employees Retirement System Act, 2006 but section 7 of that Act does not apply with respect to the corporation and its employees.
Repeal, Commencement
and Short Title
Repeal
55. Subsections 23 (2) and 33 (3) and sections 36 to 43 are repealed on December 31, 2009.
Commencement
56. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.
Same
(2) Sections 1 to 54 come into force on a day to be named by proclamation of the Lieutenant Governor.
Short title
57. The short title of this Act is the Ontario Municipal Employees Retirement System Act, 2006.
EXPLANATORY NOTE
This Explanatory Note was written as a reader's aid to Bill 206 and does not form part of the law. Bill 206 has been enacted as Chapter 2 of the Statutes of Ontario, 2006.
The Ontario Municipal Employees Retirement System Act, 2006 is enacted, replacing the Ontario Municipal Employees Retirement System Act. A new corporation, the OMERS Sponsors Corporation, is established to oversee the design and governance of the OMERS pension plans.
OMERS Pension Plans
The Ontario Municipal Employees Retirement System is continued and is composed of the OMERS pension plans and any retirement compensation arrangements that provide benefits for members and former members of the OMERS pension plans.
The pension plan that is governed by the current Act is continued as the primary pension plan. The pension funds that are governed by the current Act are continued. The terms and conditions of the pension plan that are in effect when the current Act is repealed are continued as the terms and conditions of the primary pension plan. Currently, those terms and conditions are established by regulation. Any retirement compensation arrangements that provide benefits to members or former members of the OMERS pension plans are continued with the same terms and conditions. Under the new Act, the terms and conditions of any of the plans may be changed by the Sponsors Corporation.
One or more supplemental plans may be established for the purpose of providing optional benefits to members of the primary pension plan who are members of a police force or employed as firefighters or paramedics, or to other members and former members of the primary pension plan. No assets of the primary pension plan may be used to pay optional benefits or to fund other liabilities of a supplemental plan.
The employers who participate in the OMERS pension plans are described in sections 5 and 6. Section 7 re-enacts the current prohibition on municipalities and local boards making contributions to a pension plan other than an OMERS pension plan or the Canada Pension Plan for the provision of a pension to any of their eligible employees. The current exceptions are preserved. Specified classes of employers are required to have the consent of the Sponsors Corporation in order to terminate their participation in the OMERS pension plans.
Sections 9 to 15 set out restrictions on the terms and conditions of the OMERS pension plans. The primary pension plan must be a defined benefit plan. Any optional pension benefit for members of the primary pension plan which includes an annual benefit accrual rate of over 2.0 and up to 2.33 per cent must be implemented using a supplemental plan and not the primary pension plan. The Administration Corporation is required to amend the OMERS pension plans to provide optional increases in benefits to members of the primary pension plan who are employed as members of a police force or as firefighters or paramedics and to establish the contribution rates for those benefits.
The contributions payable to an OMERS pension plan for a year by employers and employees must be equal, with certain exceptions. Section 13 establishes a limit on contributions for increased pension benefits, subject to the right of an employee to make additional payments for past service. Section 14 governs the actuary's determination of the contribution rate for the primary pension plan and for any retirement compensation arrangements for those members who are also members of a supplemental plan. Section 15 provides for a reserve to stabilize contribution rates. Under that section, a restriction is imposed on amendments to the primary pension plan.
Any decision of the Sponsors Corporation to change benefits for members, to change a contribution rate or to establish or change a reserve to stabilize contribution rates under an OMERS pension plan must be made in accordance with the requirements set out in section 26 of the Act.
Governance and Administration
of the Pension Plans
The OMERS Sponsors Corporation is established by section 22 of the new Act. The composition of the Sponsors Corporation is to be determined by by-law. Its objects, powers and duties are described in sections 24 to 31 of the Act, and they include the power to make decisions about the design of the OMERS pension plans and the power to set the contribution rates under the plans.
The Sponsors Corporation may require the Administration Corporation to reimburse it from any pension or other fund for costs that may be paid lawfully out of the fund and may impose a fee on employers and members of the OMERS pension plans to fund any of its costs that may not be paid lawfully out of a pension fund.
The OMERS Administration Corporation (formerly the Ontario Municipal Employees Retirement Board) is continued by section 32 of the new Act. The composition of the Administration Corporation is to be determined by by-law of the Sponsors Corporation. Its objects, powers and duties are described in sections 34 and 35 of the Act. The Administration Corporation is the administrator of the OMERS pension plans and trustee of the pension funds. The Administration Corporation also advises and assists the Sponsors Corporation and, under agreements entered into by the Sponsors Corporation under section 29, may be required to act as the agent of the administrator of other pension plans and to manage other pension funds.
Two committees are established to advise the Sponsors Corporation about benefits for OMERS pension plan members, one respecting benefits for members who are employed in the police and fire sectors and the other respecting benefits for members who are not employed in those sectors.
Transitional arrangements are made respecting the composition of the Sponsors Corporation and the Administration Corporation and respecting the circumstances in which the Sponsors Corporation is required to meet. Supplementary decision-making mechanisms are established with respect to specified types of decisions concerning the OMERS pension plans. The transitional arrangements are set out in sections 36 and 37 and 41 to 43.
Consequential Amendments
The Ontario Municipal Employees Retirement System Act is repealed and consequential amendments are made to other Acts.