April 26, 1998
CORPORATE SERVICES COMMITTEE
The Board of Trustees of the Metropolitan Toronto Pension Plan on April 24, 1998, had before it the Actuarial Report and
Cost Certificate for the Plan as at December 31, 1997, submitted by Mr. Robert Camp, Senior Vice-President, Sedgwick
Noble Lowndes, and setting out full details of the Plan's financial position on the valuation date, making recommendations
as to the utilization of the experience gains, and illustrating the effect of the recommendations on the funded position.
The Board of Trustees also had before it a report dated April 21, 1998, from the Chief Financial Officer and Treasurer
submitting comments on the aforementioned Actuarial Report and Cost Certificate; advising that the Actuary=s
recommendations to significantly improve the benefits of the Metro pension plans require consultation with and
endorsement by employers and employee groups; and recommending that: (i)a consultation process be commenced by means of the recommendations of the Actuary relating to changes to the
Metropolitan Toronto Pension Plan and the Metropolitan Toronto Police Benefit Fund, other than the cost-of-living
increase to pensions, being referred to the Corporate Services Committee and the Toronto Police Services Board,
respectively, and to the appropriate corresponding employee bargaining units for comment; and
(ii)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Mr. Robert Camp, Senior Vice-President, Sedgwick Noble Lowndes, made a presentation to the Boards of Trustees in
connection with the foregoing matter and filed a copy of his presentation with respect thereto.
The Board of Trustees recommended to the Corporate Services Committee that:
(1)effective July 1, 1998:
(a)an increase of 0.7 percent be granted on pensions to pensioners on benefit for more than one year, and a proportionate
increase of .058 percent for each month of pension payment made in 1997 be granted for pensioners who retired during
1997;
(b)current member and employer contributions be reduced by 2 percent of contributory earnings for the five-year period
ending June 30, 2003;
(c)the current early retirement factor of 85 points be reduced to 80 points for the five-year period ending June 30, 2003;
(d)the current reduction penalty for shortfalls in the early retirement factor be reduced from 4 percent to 2.5 percent for the
five-year period ending June 30, 2003;
(e)the basic percentage for spousal survivor pensions be increased to 66 2/3 percent from 60 percent for all active and
retired members;
(f)in addition to the pensioner increases provided for in Recommendation No. (1)(a), all current spousal benefits be
increased by one-ninth if the spouse is in receipt of a 60 percent spousal benefit and, further, if the spouse is in receipt of a
65 percent, 70 percent or 75 percent optional spousal benefit that the pensions be recalculated using revised reduction
factors to reflect the increase in the basic spousal benefit to 66 2/3 percent from 60 percent;
(g)the benefit being paid to pensioner members who have elected increased spousal benefits, be adjusted using revised
actuarial reduction factors to reflect the increase in spousal benefits to 66 2/3 percent; and
(2)the authority be granted for the introduction in Council of the necessary Bills to give effect to Recommendation No.
(1).
The Board of Trustees also: (I)requested the City Solicitor to draft the appropriate amending by-law respecting Recommendation No. (1), and submit
such draft by-law directly to the Corporate Services Committee for consideration with this matter;
(ii)requested the Chief Financial Officer and Treasurer to submit a report to the Board of Trustees for its next meeting
scheduled to be held on May 22, 1998, on the costs of administering the Plan; and (iii)received the aforementioned report dated April 21, 1998 from the Chief Financial Officer and Treasurer.
Interim Board Secretary
Metropolitan Toronto Police Benefit Fund and
Metropolitan Toronto Pension Plan
M.E. Casini/co
Ref: Item- 6 Metro
Sent to:Corporate Services Committee
Chief Financial Officer and Treasurer
Mr. Robert Camp, Senior Vice President, Sedgwick Noble Lowndes
City Solicitor
c.Mr. Tony Brooks, Toronto Finance
Manager, Pension Administration, Toronto Finance
Mr. Narayan Kandalgaonkar, Sedgwick Noble Lowndes
Mr. Derek Brown, Toronto Legal