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HomeMy WebLinkAboutCOD-012-16 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 toq n.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.