Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council/et au Conseil

3 August 2004 / Le 3 août 2004

Submitted by/Soumis par : Greg Geddes, Chief Corporate Services Officer/Chef des Services généraux

Corporate Services Department/Services généraux

Contact/Personne-ressource : Liz Marland, Manager of Compensation & Benefits/
Gestionnaire, Rémunération et Avantages sociaux

580-2424 ext./poste 25194, Elizabeth.Marland@ottawa.ca

Ref N^o : ACS2004-CRS-HMR-0002

SUBJECT:

employer participation in the Ontario municipal employees retirement system (omers) – Amendment to BY-LAW 2003-100

OBJET :

PARTICIPATION DE L’EMPLOYEUR AU RÉGIME DE RETRAITE DES EMPLOYÉS MUNICIPAUX DE L’ONTARIO (omers) – MODIFICATION AU RÈGLEMENT 100-2003

REPORT RECOMMENDATION

That the Corporate Services and Economic Development Committee recommend Council approve an amendment to Section 7 of By-law 2003-100, to read as follows:

"Every person who becomes an employee of the Employer on or after the effective date, if such person is employed on an other-than-continuous full-time basis, will be eligible to become a member of OMERS, based on the eligibility criteria as outlined in the Pension Benefits Act, R.S.O. 1990, Chapter P.8, as amended."

RECOMMANDATION DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande au Conseil d’approuver une modification afin que l’article 7 du Règlement municipal n^o 100-2003 soit remplacé par ce qui suit :

« Quiconque devient un employé de l’Employeur à la date de prise d’effet ou après cette date, s’il est employé en vertu d’un régime de travail autre qu’un régime à temps plein continu, sera admissible aux prestations d’OMERS selon les critères d’admissibilité stipulés dans la Loi sur les régimes de retraite, L.R.O. 1990, chapitre P.8, dans sa forme modifiée. »

BACKGROUND

City Council enacted By-law No. 2003-100 entitled "A by-law of the City of Ottawa respecting participation in the Ontario Municipal Employees Retirement System" on March 26, 2003 to add employees’ pensionable service accrued with former municipalities to the new City of Ottawa and to allow the new City to participate in the Ontario Municipal Employees Retirement System (OMERS) Pension Plan in accordance with the OMERS Act.

Section 7 of the said by-law provides that all employees, including other-than-continuous full-time employees shall, as a condition of employment, become a member of OMERS. Staff’s original intent was to have these employees meet the necessary criteria as outlined in the Pension Benefits Act. The criteria states that OTCFT (other-than-continuous full-time) employees must be paid a minimum of 700 hours in two consecutive years in order to be enrolled in the OMERS system. The recommended revised wording accomplishes this clarification.

DISCUSSION

As this wording does not reflect the original intent to mirror the eligibility requirements as outlined the Pension Benefits Act (Ontario) for its other-than-continuous full-time employees, amendment to Section 7 is recommended.

CONSULTATION/PUBLIC NOTIFICATION

OMERS has indicated that this change is acceptable and provided wording to assist in making the required amendment.

FINANCIAL IMPLICATIONS

The City of Ottawa must match any employee contributions to the Ontario Municipal Employees Retirement System (OMERS).

DISPOSITION

Legal Services to forward the amending by-law to Council for enactment.