June 28, 1999

To:Administration Committee

From:Brenda Glover, Executive Director of Human Resources

Subject:Harmonization of Severance Provisions - Council Members

Purpose:

To harmonize in a consistent policy the severance remuneration provisions of the former municipalities, for Council members.

Funding Sources, Financial Implications:

There are no additional funding requirements.

Recommendation(s):

(1)that the severance remuneration provisions for Council members as described in this report be approved;

(2)authority be granted for the introduction of any Bills necessary to give effect to the foregoing; and

(3)the appropriate City officials be authorized and directed to take all steps necessary to give effect to the foregoing matter.

Council Reference/Background/History:

During development of the report "Conditions of Employment - Council Staff" for Corporate Services Committee, staff identified the need to harmonize previous policies of the former municipalities for severance remuneration for Council members.

Comments and/or Discussion and/or Justification:

Four of the seven former municipalities (Metro, Toronto, North York, York) had defined policies for severance remuneration for Council members. In each case, the allowable amount was one (1) month per year of service to a maximum of six (6) months. Eligibility criteria and allowable circumstances were also similar. The proposed severance remuneration provisions are consistent with these past practices.

Proposed Severance Remuneration:

Eligible member of Council - a person who has served as a member of Council for a minimum period of thirty (30) days.

Severance remuneration to be equal to one-twelfth the annual remuneration of the member for each year of consecutive service to a maximum of six (6) years.

Where a period of service is less than a year, the severance remuneration will be calculated in proportion to the time actually served.

Member contributions to OMERS and to any other pension plan or retirement scheme will not be deducted from the severance remuneration.

A person who is an eligible member of Council is entitled to receive severance remuneration where:

(a)they are a member on November 30^th in an election year, and in that year, is a candidate for election to City Council and who is not elected to office;

(b)the member dies during the term of office for which he or she is elected;

(c)the member resigns his or her seat during the term of office for which he or she was elected, but no severance remuneration will be paid where the resignation is the result of:

-the member is disqualified to be a member of the Council under the provisions of any Act of the Parliament of Canada or any Act of the Legislature of the Province of Ontario; or

-the seat of the member of the Council becomes vacant by reason of the operation of any Act of the Parliament of Canada or any Act of the Legislature of the Province of Ontario.

It is recommended that the above proposed severance provisions be approved for current members of Council.

Contact Name:

Alison Anderson

Director, Employment Services

392-5028

Brenda Glover

Executive Director of Human Resources