Item - 2019.GL6.8

The General Government and Licensing Committee recommends that:

1.  City Council approve an amendment to Schedule A attached to By-law 100-2018 governing the Toronto Civic Employees' Pension Plan (the Plan) to:

a.  strike out the existing precondition and formula for conditional annual post retirement adjustments for pensioner benefits in Sections 14B(3a) and 14B(3b) of the Plan and replace it with 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 Toronto Civic Employees' Pension Plan (Civic Plan) to implement the OMERS provision for annual CPI-linked inflation adjustments, immediately prior to the merger of the Civic Plan with the OMERS Plan under the Pension Transfer Agreement (PTA) between OMERS and the City. The PTA requires that the Civic Plan members, following a merger with the OMERS Plan, continue to be entitled to their existing benefits, with the exception that the current formula for conditional annual Post Retirement Adjustments will be replaced by the CPI-linked unconditional inflationary adjustment provided to all OMERS Plan pensioners.

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.