March 12, 1999
CORPORATE SERVICES COMMITTEE:
The Board of Trustees of the Metropolitan Toronto Police Benefit Fund at its meeting held on February 26, 1999, had
before it the Minutes of the Sub-Committee, held on February 11, 1999, submitted by Mr. M. D. Jory, Chairman of the
Sub-Committee and of the Board of Trustees; wherein the Sub-Committee appointed by the Board met with representatives
of various groups to consider amendments to the pension plan and the following items were discussed:
(1)Mandatory indexation - the present method of adjustment be continued as mandatory indexation was deemed
unaffordable and perhaps in conflict with the Municipal Act. The Police Association was requested to remove this item
from the bargaining table;
(2)Contribution holiday - the plan should be converted to a non-contributory plan subject to annual review;
(3)Refund of contributions - it was agreed by most of those present to allow;
(4)Increase in spousal pensions - endorsed the proposed increase from 60% to 66 2/3% since the impact for active
members is a small fraction only of the cost for retired members; and
(5)Administration costs - agreeable to the concept, but requested that it be implemented only when agreement had been
reached by all plans, which were to be incorporated with the Metropolitan Toronto Pension Plan; therefore the Actuary
should include the estimated actuarial cost as of January 1, 1998, in his Valuation Report due in April, which was
calculated at $1.6 million, but that no charge be made to the Plan until agreement had been reached by all participants as
noted above.
The Board of Trustees recommended to the Corporate Services Committee that:
(1)the plan should be converted to a non-contributory plan subject to annual review, effective January 1, 1999;
(2)the basic percentage for spousal survivor pensions be increased to 66 2/3 percent from 60 percent for all active
members, effective July 1, 1998; and
(3)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 Corporate Services Committee for consideration with this matter.
The Board of Trustees adopted the foregoing recommendations and authorized and directed the appropriate City Officials,
the Chief Financial Officer to take the necessary action to give effect thereto.
Board Secretary
Metropolitan Toronto Police Benefit Fund and
Metropolitan Toronto Pension Plan
Betty Bushe/bb
Ref: Item- 7 Police
Sent to:Corporate Services Committee
City Solicitor
Chief Financial Officer and Treasurer
Manager, Pension Administration, Pension, Payroll and Employee Benefits
c.Mr. David Markle, Secretary, Police Benefit Fund Committee
Mr. Derek Brown, City Legal