HomeMy WebLinkAboutCOD-019-16Corporate Services
Report
If this information is required in an alternate accessible format, please contact the Municipal
Clerk at 905-623-3379 ext. 2102.
Report To: General Government Committee
Date of Meeting: September 26, 2016
Report Number: COD-019-16 Resolution:
File Number: N/A By-law Number:
Report Subject: By-law to Finalize the Fire Management Change in OMERS
Recommendations:
1.That Report COD-019-16 be received;
2.That a by-law be approved to finalize the process of the OMERS conversion for Fire
Management as approved through report COD-012-16 based on OMERS requirement, that
a specific by-law is required; and
3.That all interested parties listed in Report COD-019-16 and any delegations be advised of
Council’s decision.
Municipality of Clarington
Report COD-019-16 Page 2
Report Overview
To initiate a specific by-law to address the Fire Management Change in OMERS.
1. Background
Report COD-012-16 Emergency Services Management Request to Change Pension
Plans in OMERS (attachment #1), was received and approved; Resolution #GG-326-15.
Upon reviewing the attached Council approval OMERS advised that an OMERS specific
by-law is required, therefore this is a housekeeping item to allow finalization of the
conversion.
2. Concurrence
Not Applicable
3. Conclusion
It is respectfully recommended that Council approve the request for a by-law in
accordance with the approval of the conversion through report COD-012-16.
4. Strategic Plan Application
Not applicable.
Submitted by: Reviewed by:
Marie Marano, H.B. Sc., C.M.O. Curry Clifford, MPA, CMO
Director of Corporate Services Interim Chief Administrative
Officer
Staff Contact: Kerri McMullen, Compensation and Benefits Supervisor, 905-623-3379 ext.
2206 or kmcmullen@clarington.net
Attachments:
Attachment 1 – Report #COD-012-16; Emergency Services Management Request to Change
Pension Plans in OMERS
Attachment 2 – Draft By-law; Fire Retirement Age OMERS
MM/KM/gj
Claring-ton
Corporate rvi
If this information is required in an alternate accessible format, please contact the Municipal
Clerk at 905-623-3379 ext. 2102.
Report To: General Government Committee
Date of Meeting: May 30, 2016
Report Number: COD-012-16 Resolution: : -
File Number: By-law Number:
Report Subject: Emergency Services Management Request to Change Pension Plans
in OMERS
Recommendations:
1. That Report COD-012-16 be received; and
2. That the request for the Emergency Services Management group to be moved to the
Normal Retirement Age (NRA) 65 pension plan with OMERS be approved.
Municipality of Clarington
Report COD-012-16 Page 2
Report Overview
Request for Council to approve the Emergency Services Management Group to change
pension plans in OMERS from NRA60 to NRA65.
1 . Background
1.1 Emergency Services Management Request
On March 24, 2016 the Emergency Services Management provided a memo signed by
all three (3) employees requesting to move from Normal Retirement Age (NRA) 60 to
NRA65. Under OMERS rules all members of the group must sign confirmation of their
request to initiate change.
1.2 Emergency Services Management Group
The Clarington Emergency Services Management Group consists of the Fire Chief and
two (2) Deputy Fire Chiefs. They are considered Non-Affiliated staff, not bound by the
Fire Collective Agreement (therefore not entitled to the 3-6-9 compensation rule) and
are not assigned to fire suppression duties, therefore no mandatory retirement at age
sixty (60) according to Bill 181. Their salary, vacation entitlement, extended healthcare
and dental benefits, Life, LTD and AD&D are all under the Non-Affiliated plans. Their
OMERS pension, NRA60, is the only benefit that does not fall under the Non-Affiliated
plan.
1.3 Firefighters Retirement Required at Age 60
In 2011 report COD-018-11 was prepared on Bill 181 - Fire Mandatory Retirement
Legislation generally outline the potential impact on the Municipality of Clarington. The
report provided information about mandatory retirement for suppression firefighters at
age 60 due to a Human Rights Tribunal decision deeming this as a bona fide
occupational requirement. The risks of cardiac events for firefighters are significant and
increase with age; in particular after age 60 and the risk of an on-the-job cardiac event
during emergency response is particularly high. The Fire Collective Agreement
provides that firefighters will retire at age 60.
1.4 Contribution Rates to OMERS
Under the NRA60 plan the contribution rates are higher to have a Normal Retirement
Age of 60 (instead of 65). The current contribution rates for NRA60 are 9.2% up to the
Yearly Maximum Pensionable Earnings (YMPE) and 15.8% above this. For NRA65 the
current contribution rates are 9.0% up to the YMPE and 14.6% for earnings above. The
Municipality of Clarington contributes one dollar for every dollar contributed by our
members. Based on the current contribution rates the annual savings for the
Municipality would be approximately $3,438.24 for the current incumbents in this
Management group.
Municipality of Clarington
Report COD-012-16 Page 3
Area Municipalities
City of Oshawa NRA65
Town of Whitby Records indicate NRA 65; currently at NRA60 but interested in
NRA65
Town of Ajax NRA60
Town of Pickering NRA60
The Municipality has had inquiries from another municipality who has received similar
requests from their Fire Management. The general trend indicates a growing interest in
movement to NRA65 for Fire Management.
3. Summary
Clarington Emergency Services Management are deemed Non-Affiliated Management
for compensation and all but OMERS benefits; moving them to NRA65 would align them
with the rest of the Management group and all benefits would be under the Non-
Affiliated plan. The design of the NRA60 plan is higher contributions to allow them to
retire at age 60 without a reduced pension. As there is no requirement for Emergency
Services Management to retire by age 60 it is reasonable to consider their request to be
moved to NRA65. This would also save the Municipality money as contributions are
matched dollar for dollar. The Municipality also benefits from continued stability in the
management positions which are becoming increasingly difficult to fill such vacancies
due to the 3/6/9 compensation and 24 hour shift schedules which are only available to
the Association Members, reducing incentive to move into management positions.
4. Conclusion
It is respectfully recommended that Council approve the request to move the
Emergency Services Management Group to the NRA65 pension plan, which would then
align all their benefits under the Non Affiliated Management group. If approved this will
apply to the current incumbents and any future incumbents going forward, meaning a
continued cost savings for the Municipality on their OMERS contributions.
5. Strategic Plan Application
Not applicable.
r
Submitted by: r Reviewed by:
I Iarie Marano Franklin Wu,
Director of Corporate Services Chief Administrative Officer
Staff Contact: Kerri McMullen, Compensation and Benefits Supervisor 905-623-3379 ext. 2206
or kmcmullen(a clarin toqn.net
MM/KM/gj
Municipality of Clarington
Report COD-012-16 Page 4
Attachments- None
There are no interested parties to be notified of Council's decision.
retirement age under the OMERS primary pension plan (“Primary Plan”) and the
members of the Primary Plan (“RCA”), in respect of the employees id
(“Employer”) previously enacted By
“subject to Clause 8 of this By law,”
“8
”
Attachment #2 to
Report COD-019-16