Item - 2019.GL6.10

The General Government and Licensing Committee recommends that:

1.  City Council approve an amendment to By-law 116-2018, as amended, governing the Metropolitan Toronto Police Benefit Fund (the Plan) to:

a.  add the Ontario Municipal Employees Retirement System (OMERS) Plan provision for annual unconditional Consumer Price Index-linked inflation adjustments; and

b.  make such other amendments as may be required to facilitate the merger and transfer of assets.

This report seeks authority to amend the By-law governing the Metropolitan Toronto Police Benefit Fund (Police Plan) to add the OMERS provision for annual CPI-linked inflation adjustments, immediately prior to the merger of the Police Plan with the OMERS Plan under the Pension Transfer Agreement (PTA) between OMERS and the City. The PTA requires that the Police Plan members, following a merger with the OMERS Plan, continue to be entitled to their existing benefits, with the exception that they will become entitled to the CPI-linked unconditional inflationary annual adjustment as is provided to all OMERS Plan pensioners. The Police Plan does not currently contain an indexing provision per se. All historical increases have been ad hoc amendments to the By-law under specified conditions.

The City's experience with the transfer of the York Plan indicates that the Superintendent of Financial Services' (the Superintendent) consent will be conditional upon the indexing amendment to the Plan first being made.