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Harmonization of Severance Provisions - Council Members
The Administration Committee recommends:
(1) the adoption of the report (July 12, 1999) from the Executive Director of Human Resources; and
(2) that the report (June 28, 1999) from the Executive Director of Human Resources be received:
The Administration Committee submits the following report (July 12, 1999) from the Executive Director of Human Resources:
Purpose:
To provide supplementary information and revised recommendations to the report on the Administration Committee agenda of July 13, 1999, entitled "Harmonization of Severance Provision - Council Members". The recommendations in this report replace those contained in the original report.
Funding Sources, Financial Implications:
Financial implications can be accommodated within the Operating Budget.
Recommendations:
It is recommended that:
(1) the proposed severance remuneration provisions as contained in this report be adopted;
(2) funds be included in the 2000 budget to provide for an allowance of up to $3,500 for outplacement, transition or retirement counseling for members who retire, or who are not re-elected to office, or who resign from office. Funds can only be provided if the member accesses the counseling; and
(3) the appropriate City officials be authorized and directed to take the necessary steps to give effect to the foregoing matter.
Comments:
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.
In researching the current practice of other municipalities, the Provincial Government and the Federal Government, information was also discovered subsequent to the preparation of the original report on the agenda for the Administration Committee of July 13, 1999.
As examples, the City of Mississauga, the Region of Peel and the Government of Ontario have a maximum of twelve months for severance provision. The Provincial Government has a minimum of six months.
The Government of Canada provides for 50 percent of the basic annual sessional indemnity to which the Member was entitled as of the day prior to the election (or resignation or death). Ministers, the House Leader, Whip, Parliamentary Secretary and other offices or positions also receive, in addition to 50 percent of the basic annual sessional indemnity, an amount equal to the individual’s annual salary.
In order to remain current with the City’s policy in this regard, it is recommended that the severance provisions for Members of Toronto Council be adopted as follows:
(i) eligible Member of Council is defined as a person who has served as a Member of Council for a minimum period of thirty (30) days;
(ii) severance remuneration is to be equal to one-twelfth the annual remuneration of the Member for each year of consecutive service to a maximum of twelve (12) years:
(a) where a period of service is less than a year, the severance remuneration will be calculated in proportion to the time actually served; and
(b) Member contributions to OMERS and to any other pension plan or retirement scheme will not be deducted from the severance remuneration.
(iii) a person who is an eligible Member of Council is entitled to receive severance remuneration if:
(a) a member on November 30 in an election year, and in that year, is a candidate for election to City Council and is not elected to office;
(b) the member dies or resigns his or her seat during the term of office for which he or she is elected; and
(c) the member ceases to be a member, unless the seat of the member becomes vacant by reason of, or by resignation which is a result of or given in anticipation of, disqualification under, or the operation of any Act of the Parliament of Canada or the Legislature of the Province of Ontario.
The City of Mississauga has also approved for its members of Council an allowance of up to $6,000 for appropriate counseling to re-establish him/herself in a career or to prepare for retirement. This is only paid if counseling is used.
Staff are recommending that this provision be introduced for the year 2000 for members of Toronto City Council. The amount of $3,500 is recommended since it provides for up to six months of counseling based on the City’s current programs. It is recommended that this only be paid to the member if services are used.
The severance provisions would apply to all individuals who were members of Toronto City Council at and subsequent to January 2, 1998. For the purposes of severance remuneration, continues service in the former municipalities which now comprise the City of Toronto will be counted.
The Administration Committee also submits the following report (June 28, 1999) from the Executive Director of Human Resources:
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.
Recommendations:
It is recommended that:
(1) 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:
(i) Eligible member of Council – a person who has served as a member of Council for a minimum period of thirty (30) days.
(ii) 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.
(iii) Where a period of service is less than a year, the severance remuneration will be calculated in proportion to the time actually served.
(iv) Member contributions to OMERS and to any other pension plan or retirement scheme will not be deducted from the severance remuneration.
(v) A person who is an eligible member of Council is entitled to receive severance remuneration where:
(a) they are a member on November 30 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:
(i) 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
(ii) 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.
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