Ontario Municipal Employees Retirement System Act, 2006 Gerretsen, Hon. John Minister of Municipal Affairs and Housing — Bill 206 (38th Parliament, 2nd Session)

Bill 206, 38-2

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Bill 206, Ontario Municipal Employees Retirement System Act, 2006

Gerretsen, Hon. John Minister of Municipal Affairs and Housing

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[38] Bill 206 Royal Assent (PDF)

Bill 206 2006

An Act to revise the

Ontario Municipal Employees

Retirement System Act

Note: This Act amends or repeal more than one Act. For the legislative history of these Acts, see Public Statutes - Detailed Legislative History on

www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Interpretation

Definitions

(1) In this Act,

"Administration Corporation" means the corporation continued by subsection 32 (1); ("Société d'administration")

"annual benefit accrual rate" has the same meaning as under the Income Tax Act (Canada); ("taux annuel d'accumulation des prestations")

"associated employer" means an employer who participates in an OMERS pension plan under subsection 6 (1); ("employeur associé")

"benefits" means pension benefits and ancillary benefits, unless the context requires otherwise; ("prestations")

"local board" means local board as defined in

section 1 of the Municipal Affairs Act and includes any person or entity that, under another Act, is deemed to be a local board for the purposes of this Act; ("conseil local")

"OMERS" means the Ontario Municipal Employees Retirement System; ("OMERS")

"OMERS pension plans" means the primary pension plan, any retirement compensation arrangements that provide benefits for members and former members of the OMERS pension plans and such other pension plans as may be established by the Sponsors

Corporation; ("régimes de retraite d'OMERS")

"primary pension plan" means the pension plan continued by subsection 3 (1); ("régime de retraite principal")

"retirement compensation arrangement" means retirement compensation arrangement as defined in subsection 248 (1) of the Income Tax Act (Canada); ("convention de retraite")

"Sponsors Corporation" means the corporation established by subsection 22 (1); ("Société de promotion")

"supplemental plan" means a pension plan that is a supplemental plan as defined in the regulations under the Income Tax Act (Canada). ("régime complémentaire")

Interpretation, pension matters

(2) Words and expressions used in this Act that relate to pension plans and pension funds have the same meaning as under the Pension Benefits Act , unless the context requires otherwise.

Same, municipal matters

(3) Words and expressions used in this Act that relate to municipal matters have the same meaning as under the Municipal Act, 2001 , unless the context requires otherwise.

Police and fire sectors

(4) A reference in this Act to persons who are employed in the police and fire sectors is a reference to OMERS pension plan members who are members of a police force as defined in

section 2 of the Police Services Act or who

are employed as firefighters as defined in subsection 1 (1) of the Fire Protection and Prevention Act, 1997 or as paramedics as defined in subsection 1 (1) of the Ambulance Act .

Ontario Municipal Employees

Retirement System

OMERS continued

2. The Ontario Municipal Employees Retirement System is continued and is composed of the OMERS pension plans.

Primary pension plan

(1) The pension plan that is governed by the Ontario Municipal Employees Retirement System Act immediately before that Act is repealed is continued as the primary pension plan.

repealed.

Pension funds

(3) The pension funds that are governed by the Ontario Municipal Employees Retirement System Act immediately before that Act is repealed are continued.

Retirement compensation arrangements

(4) Any retirement compensation arrangements that provide benefits for members and former members of the OMERS pension plans that are in effect on the day the Ontario Municipal Employees Retirement System Act is repealed are

Supplemental plans

(1) The Sponsors Corporation may establish one or more supplemental plans for the purpose of providing optional benefits to members and former members of the primary pension plan who

are, or were, employed in the police and fire sectors or to other members and former members of the primary pension plan.

Restriction on use of primary pension plan assets

(2) No assets of the primary pension plan shall be used for the purpose of paying any optional benefit under a supplemental plan or funding the payment of any other liability of a supplemental plan.

Employer Participation

in the Pension Plans

Employers generally

(1) Each of the following employers may participate in the OMERS pension plans in respect of its eligible employees:

1. A municipality.

2. A local board other than a hospital board that operates a public hospital, within the meaning of the Public Hospitals Act , on behalf of a municipality.

3. A conservation authority within the meaning of the Conservation Authorities Act .

4. A district social services administration board within the meaning of the District Social Services Administration Boards Act .

5. An area services board established under

Part II of the Northern Services Boards Act .

6. An association of municipalities or local boards.

7. An association of the officials or employees of municipalities or local boards.

8. The Crown.

9. The Sponsors Corporation.

10. The Administration Corporation.

Same

(2) A municipality may participate in the OMERS pension plans in respect of its councillors.

Eligible employees

(3) For the purposes of this

section and

section 7,

"eligible employee" means, in respect of an employer, a person who is employed by the employer but not a person who contributes to a pension plan under the Ontario Public Service Employees' Union Pension Act, 1994 , the Public

Service Pension Act or the Teachers' Pension Act .

Associated employers

(1) Each of the following employers may participate in the OMERS pension plans on such conditions as may be agreed upon by the employer and the Sponsors Corporation:

1. A person who, under an agreement with a municipality or local board or under

an Act, provides a service, program or thing to a person that the municipality or local board is authorized to provide to the person.

2. A corporation incorporated in accordance with

section 142 of the Electricity Act, 1998 for the purpose of generating, transmitting, distributing or retailing electricity.

3. A person or association of persons that, immediately before the repeal of the Ontario Municipal Employees Retirement System Act , was designated by the Lieutenant Governor in Council for the purposes of clause (

c) of the definition

of "associated employer" in subsection 1 (1) of that Act or that, immediately before the repeal of that Act, was deemed by another Act to have been so designated.

Eligible employees of associated employers

(2) The following employees of an associated employer are eligible to be members of the OMERS pension plans:

1. For an employer described in paragraph 1 of subsection (1), an employee whose duties relate primarily to the provision of the service, program or thing provided by the employer on behalf of the municipality or local board.

2. For an employer described in paragraph 2 of subsection (1), an employee whose duties relate primarily to the activities referred to in that paragraph.

3. For an employer described in paragraph 3 of subsection (1), every employee.

Same

(3) For the purposes of paragraphs 1 and 2 of subsection (2), the employee's duties may include administrative activities relating to the provision of the service, program or thing or the performance of the employer's duties, as the

case may be.

Participation in other plans

(1) Despite any other Act, a municipality or a local board shall not make a contribution for the provision of a pension to any of its eligible employees unless the contribution is made under the

Canada Pension Plan or to an OMERS pension plan.

Approved pension plans

(2) Despite subsection (1), a municipality or local board may make a contribution under another pension plan for the provision of a pension to an eligible employee if all of the following circumstances exist:

1. The pension plan was established by a municipality or local board under a general or special Act and was in effect on the applicable date described in paragraph 4.

2. The employee became employed by the municipality or local board before the applicable date described in paragraph 4.

3. The contribution is made in respect of the employee's service before he or she becomes entitled to be a member of the primary pension plan.

4. For a contribution made under a collective agreement, the applicable date is the earlier of July 1, 1968 or the date on which the agreement is terminated. For any other contribution, the applicable date is July 1, 1965.

Interpretation

(3) A payment by a municipality or local board to an associated employer with respect to the service, program or thing provided on its behalf by the employer does not constitute a contribution for the provision of a pension to an

employee of that employer.

Termination of participation

(1) An employer who is described in paragraphs 1 to 7 or paragraph 9 or 10 of subsection 5 (1) is not entitled to terminate its participation in an OMERS pension plan unless it has the consent of the

Sponsors Corporation.

By-law

(2) An employer who is described in paragraphs 1 to 7 or paragraph 9 or 10 of subsection 5 (1) shall not pass a by-law providing for the termination of its participation in an OMERS pension plan except upon such terms as may be

established by the Sponsors Corporation.

Restrictions Affecting the Pension Plans

Defined benefit plan

9. The primary pension plan must be a defined benefit plan.

Optional increases in pension benefits

10. An optional pension benefit for members of the primary pension plan in respect of which the annual benefit accrual rate is greater than 2.0 per cent and less than or equal to 2.33 per cent must be implemented

using a supplemental plan and not the primary pension plan.

Optional increases, police and fire sectors

(1) Despite any other provision of this Act, the Administration Corporation shall amend the OMERS pension plans to provide optional increases in benefits for members of the primary pension plan who are

employed in the police and fire sectors and establish the contribution rates for the benefits.

Same

(2) The amendment required by this

section shall be made within 24 months after the day this

section comes into force.

Method of calculating benefits

(3) A supplemental plan established under this

section shall make provision for all of the following:

1. An annual benefit accrual rate that is 2.33 per cent for members under the supplemental plan.

2. The payment of pension benefits to members of the supplemental plan in which the annual amount of pension is not reduced because a member retires before the member's normal retirement age of 65 years if, at the date of retirement, the sum of

the member's age, counted in full and part years, plus the member's service, counted in full and part years, equals at least 85 years.

3. The pension benefits payable to members under circumstances described in paragraph 2 shall begin to be paid not more than 10 years before the member's normal retirement age.

4. The payment of pension benefits to members of the supplemental plan in which the annual amount of pension is not reduced because a member retires before the member's normal retirement age of 60 years if, at the date of retirement, the sum of

the member's age, counted in full and part years, plus the member's service, counted in full and part years, equals at least 80 years.

5. The p

Document details

Collection	Ontario — Bills
Citation	Bill 206, 38-2
Type	bill
Volume / chapter	p38 s2 bill 206 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	59ded85409419ad7b682554afdee00f367fbe92d

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