Plan Upgrades Including a Refund of Contributions

Made by Members After Having Accrued 35 Years

Service: Metropolitan Toronto Pension Plan and the

Metropolitan Toronto Police Benefit Fund

The Administration Committee recommends the adoption of the Recommendation of the Boards of Trustees of the Metropolitan Toronto Pension Plan and the Metropolitan Toronto Police Benefit Fund embodied in the following communication (December 23, 1999) from the City Clerk:

Recommendation:

The Boards of Trustees of the Metropolitan Toronto Pension Plan and the Metropolitan Toronto Police Benefit Fund on November 26, 1999 recommended to the Administration Committee:

(1) that the refund provision be modified to include interest and that authority be granted for the introduction in Council of the necessary Bill to give effect thereto; and

(2) directed that the Chief Financial Officer and Treasurer and the City Solicitor prepare respectively the necessary report and by-laws to explain and implement such modification and submit them to the Administration Committee and City Council for approval.

Background:

The Boards of Trustees of the Metropolitan Toronto Pension Plan and the Metropolitan Toronto Police Benefit Fund, at their respective meetings held on November 26, 1999, had before them:

(1) Clause 13, contained in Report No. 6 of the Administration Committee, headed "Plan Upgrades: Metropolitan Toronto Plan and Metropolitan Toronto Police Benefit Fund", which was adopted, without amendment, by the Council of the City of Toronto at its meeting held on October 26 and 27, 1999, authorizing certain improvements to both the Plan and the Fund, including a refund of contributions made by members after having accrued 35 year's service; and

(2) in each case, a separate communication (November 25, 1999) from Mr. R. Camp, William M. Mercer Limited, advising that in making his estimate of the cost of the refund, on the basis of which the refund had been recommended, he had assumed that no interest would be paid, that the amending by-law implementing the refund reflected that assumption and that the additional cost of including interest would be in accordance with an attached spreadsheet.

The Board of Trustees each:

(1) recommended to the Administration Committee that the refund provision be modified to include interest and that authority be granted for the introduction in Council of the necessary Bill to give effect thereto; and

(2) directed that the Chief Financial Officer and Treasurer and the City Solicitor prepare respectively the necessary report and by-laws to explain and implement such modification and submit them to the Administration Committee and City Council for approval.

(A copy of Clause No. 13 of Report No. 6 of The Administration Committee attached to the foregoing report was forwarded to all Members of Council with the January 11, 2000, agenda of the Administration Committee, and a copy thereof is also on file in the office of the City Clerk.)