June 1, 1999

ADMINISTRATION COMMITTEE:

The Board of Trustees of the Metropolitan Toronto Pension Plan on May 28, 1999, had before it a communuction (May 19, 1999), submitted by Mr. Robert Camp, William M. Mercer Limited, setting out the cost of possible plan upgrades, as requested by the Board of Trustees, for their information.

The Board of Trustees recommended to the Administration Committee that the following plan upgrades be considered:

(1)refund Member Contributions made to the Fund after 35 years of service has been credited, for active members and retired members and spouses, for which the cost is expected to be $2.65 million, similiar to what OMERS has proposed;

(2)change the offset when Canada Pension Plan starts from a three-year average calculation to a five-year calculation, for active members and retired members and spouses under 65 years of age, for which the cost is expected to be $1.95 million, similar to what OMERS has proposed;

(3)extend the survior continuation percentage to 100%, for which the cost is expected to be $0.05 million, as follows:

one survivor 66.67%

two survivors 80.00%

three survivors 90.00%

four or more survivors100.00%

(4)the authority be granted for the introduction in Council of the necessary Bills to give effect to Recommendations No. (1, 2 and 3).

The Board of Trustees also requested that:

(i)the City Solicitor draft the appropriate amending by-law respecting Recommendations No. (1, 2 and 3), and submit such draft by-law directly to the Administration Committee for consideration with this matter.

(ii)the Actuary, Mr. Robert Camp, of William M. Mercer Limited, obtain the approval of the Financial Service Commission of Ontario, for the authority to pay a one-time lump sum payment to retirees equal to an active member's contribution holiday in a calendar year, through the distribution of pension fund surplus, for which the cost is expected to be $11.80 million, prior to submitting a recommendation to Administration Committee.

Board Secretary, Board of Trustees

Metropolitan Toronto Police Benefit Fund and

Metropolitan Toronto Pension Plan

B. Bushe/bb

Ref: Item- 4 Metro

Attachments

Sent to:Chief Financial Officer and Treasurer

Mr. R. Camp, William M. Mercer Limited

City Solicitor

c.Ms. I. Zanardo, Director of Pensions, Payroll & Employee Benefits Services

Mr. R. Coopman, Manager, Pension Administration,

Mr. D. Brown, Toronto Legal Services