April 30, 1999

CORPORATE SERVICES COMMITTEE:

The Board of Trustees of the Metropolitan Toronto Pension Plan on April 30, 1999, had before it the Actuarial Report and Cost Certificate for the Fund as at December 31, 1998, submitted by Mr. Robert Camp, William M. Mercer Limited, and setting out full details of the Fund'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.

Mr. Robert Camp, William M. Mercer Limited, made a presentation to the Board of Trustees in connection with the foregoing matter.

The Board of Trustees recommended to the Corporate Services Committee that:

(1)for active members:

(a)the full contribution holiday for the employers and employees be continued for the calendar year 2000 for which the cost is expected to be $485,000;

(b)the mortality table be updated from the 1983 Group Annuity table to the 1994 Group Annuity table for which the cost is $350,000;

(c)the discount rate be changed from 7% to 6% salary scale from 6% to 5% and YMPE scale from 5% to 4% for which the cost is $3,390,000;

(2)for retired members:

(a)an increase of 1.0% be granted on pensions, effective January 1, 1999, to pensioners on benefit for more than 1 year with a proportionate increase of 0.083% for each month of pension payment made in 1998 be granted for pensions who retired during 1998 for which the cost is $5,452,000;

(b)the mortality table be updated from the 1983 Group Annuity table to the 1994 Group Annuity table for which the cost is $9,150,000;

(c)the discount rate be changed from 7% to 6% for which the cost is $45,414,000; and

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

The Board of Trustees also:

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

Board Secretary

Metropolitan Toronto Pension Plan

B. Bushe/bb

Ref: Item- 7 Metro

Attachments

Sent to:Corporate Services Committee

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. N. Kandalgaonkar, William M. Mercer

Mr. D. Brown, Toronto Legal Services