HomeMy WebLinkAboutCOD-050-06
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REPORT
CORPORATE SERVICES DEPARTMENT
Meeting:
General Purpose and Administration Committee
Date:
September 18, 2006
Resolution #: GP It - 310 - Ob
Report #: COD-050-06
File #:
By-law #:
Subject:
RE: OMERS Support Fund
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COD-050-06 be received;
2. THAT the Municipality of Clarington agree to the Association of Municipality of Ontario's
(AMO) request to provide financial support to AMO for the purpose of responding to
issues arising out of the changes to the OMERS system; and
3. THAT AMO, and the Durham Region Area municipalities, be advised of Council's
decision.
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Submitted by: ~
Marie Marano, H.B.Sc., C.M.O.
Director of Corporate Services
Reviewed bYO~~
Franklin Wu
Chief Administrative Officer
Attachment # 1: AMO Document - Allocating Costs of the OMERS Support Fund
# 2 : AMO Document - OMERS Support Fund Budget (estimated)
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-5506
REPORT NO.: COD-050-06 PAGE 2
______________________________________________________________________
BACKGROUND
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1. The Association of Municipalities of Ontario (AMO), hosted a meeting at the 2006
annual conference to explain the magnitude of support that will be required to
respond to legal and administrative matters that will result from the recent
governance changes to the OMERS system. The legislated changes such as the
supplemental benefit plans that will be negotiated for the emergency service
sector, will result in complex legal, actuarial, and administrative reviews that
AMO does not currently fund, will be expected from this Association.
2. AMO has requested all municipalities to support the Association by providing
funding based on the number of OMERS employees in its employ. The
Attachment #1 & #2 are from the AMO document reviewed at the 2006 AMO
conference, and they outline the proposed budget and funding formula. The
2006 partial year allocation is $1.73 per OMERS employee, which would
translate to approximately $520 in 2006, and approximately $1,520 in 2007
(based on 300 employees).
3. It is recommended that the Municipality of Clarington, support AMO’s funding
request as it is expected that the information will be extremely valuable as the
complexities of the supplemental plans unfold, and the cost of exploring the
issues would be cost prohibitive for each municipality to undertake on its own.
4. It is expected that AMO will invoice each participating Municipality in the near
future. The funds collected are to be maintained in a separate account and used
only for the purposes they are collected.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-6506
REPORT,NO.: COD-050-06
ATTACHMENT #1
Allocating Costs of the OMERS Support Fund
The estimated costs and allocation of costs for 2006. 2007 and 2008 are as follows:
Budget Year Estimated Total Annual Estlmclted Allocation of
Cost of . OMERSSlJPport CostsperqMERS
.. Munlc:lpat/PoliceServlces
Ernployee
. .
2006 (partial year) $170.000 $1.73
2007 $498.000 $5.06
2008 $563.000 $5.72
Note: The above estimates may be reduced if certain costs are recovered from other
designated employer groups. and is dependent upon number of meetings and
nature of the Sponsors Corporation workplan.
It is proposed that. in the Fall of 2006. municipalities with OMERS employees will
receive an invoice requesting payment of 2006 and 2007 allocated costs.
The AMO Board of Directors recognizes that. for some. these may be considerable
sums of money. While providing this level of investment in employer interests is not
within AMO's current financial capacity. this is a very important matter for
municipalities who have employees enrolled in the OMERS plan. Not investing to
protect the employers' interests puts those interests at greater risk.
It is AMO's expectation and hope that each OMERS municipal employer will see the
need to contribute. and do so on an ongoing basis. AMO will report regularly to the
OMERS municipal employers on the proceeds of this special fund (e.g.. budget and
expenditures) and the ongoing work of the AMO employer representatives.
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REPORT NO.: COD-050-06
A TT ACHMENT #2
Appendix C: AMO OMERS Support Fund Budget (estimated)
Categories Classification Budget Year
2006 2007 2008
Expenses Recruitment 50,000 25,000 25.000
($) Representation & 75.000 200.000 270,000
Indemnification
Research & 30.000 255,000 250.000
Support3
AMO OMERS 2.000 8.000 8.000
Steering Committee
(4 meetings/year)
Communications 7.000 10.000 10.000
Training Costs/ 6.000 0 0
Orientation 4
Total 170,000 498,000 563,000
Expenses
* Municipal Employees Including Pollee Services Board = estimated 98.500 members
Revenue Expense per 1.73 5.06 5.72
Municipal/Police
($) Services Employee
Total 170,000 498,000 563,000
Revenue
3 Cost recovery for "research & support" may be obtained from other employer groups and/or the Sponsors
Corporation (this is not yet determined).
4 There may be training costs in 2007/08 subject to appointments to the Sponsors Corporation and Administration
Corporation beyond the transitional one year timeframe.
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