Through effective
lobbying backed by a powerful mandate from members for political action,
CUPE Ontario moved Bill 206 closer to what members of the OMERS pension
plan need to be able to retire with dignity. And, where the bill falls
short, we will have an independent review of the new governance
structure enshrined in law.
Cap on benefits lifted
We convinced the
government to remove Section 12 of the bill, which placed a cap on
benefits for retirees and made any significant benefit improvement
impossible. With that section removed, CUPE will be able, in future, to
negotiate pension improvements similar to what is available in other
public sector pension plans.
Representation by population
In the original
Bill 206, CUPE was seriously under-represented on both the Sponsors
Corporation and the Administration Corporation. We won representation by
population on the Sponsors Corporation, which makes decisions about
benefits and contribution rates. We expect our under-representation on
the Administration Corporation to be corrected through the review
process.
Preventing cross-subsidization
Cross-subsidization, where the majority of members in the basic plan
would subsidize rich supplemental benefits for police and firefighters,
was a real possibility under the original legislation. With the help of
the NDP, we won an amendment that put language into the bill preventing
cross-subsidization. It is also listed as a specific issue to be part of
a future independent review of the new governance structure.
Supplemental benefits for paramedics
In 2005, paramedics
finally won recognition as a public safety occupation under the federal
income tax act. Somehow, the provincial government missed the news and
left paramedics out of the original Bill 206. CUPE Ontario was able to
win amendments that now give paramedics similar access as police and
firefighters to supplement benefits. We believe that we will be able to
use the independent review to pursue the outstanding issue of allowing
paramedics the same normal retirement age of 60 in the OMERS basic
plan.
Independent review enshrined in law
The McGuinty
government has agreed to introduce legislation no later than June 30,
2006 that will mandate an independent review of OMERS governance within
six years of Bill 206 being passed. And, within three years, the
minister of municipal affairs and housing will consult with unions and
employer representatives to assess the progress in implementing the new
structure.
The timeframes are
appropriate because the proposed Sponsors Corporation, which will make
decisions about benefits and contribution rates, operates on a
three-year cycle. Pension plan valuations are also conducted every three
years.
The reviewer, who
will look at the effectiveness and fairness of decision-making
structures, will be someone agreed to by the minister and employer and
employee representatives. If they cannot agree, the person will be
appointed by the Chief Justice.
Issues for review include:
§
the effectiveness and
fairness of the overall governance framework
§
decision-making by the
Sponsors Corporation, including the provisions for mediation and
arbitration
§
the overall fairness of
the OMERS pension plan and its financial stability, including making
sure that supplemental benefits are not subsidized by the basic plan.
Pension plan autonomy at last
One thing that will
not be under review is the general principle of transferring governance
of OMERS from the province to the employee and employer members. When
Bill 206 is passed, it will be the culmination of a campaign for pension
plan autonomy that CUPE Ontario has waged for more than 10 years.
Finally, CUPE
members in municipalities, school boards and children’s aid societies
are going to have the same right as members of other major public sector
pension plans to autonomous management. It’s long overdue.
CUPE members in
OMERS have shown amazing strength and solidarity in the campaign for
pension fairness. Your determination will help us through the
implementation and review of the new OMERS governance structure and
ensure that our remaining issues are addressed.
Read the Hansard extract of Local 79's follow-up
Deputation on Bill 206 Standing
Committee on General Government.
Read the Hansard extract of Local 79's Deputation
on Bill 206 to the Standing
Committee on General Government.