Joint Union Campaign‘NRA 60’ for Paramedics

It’s a Matter of Safety and Fairness!

Meeting Hosted by CUPE Ontario

Main Discussion Items Campaign Objective

‘The Issue’: Why This Campaign is Necessary

OMERS Decision-Making Structure

Benefits of NRA 60

Cost of NRA 60

Action Plans: What You and Your Local Can Do!

Campaign Objective

To achieve the right to negotiate Normal Retirement Age (NRA) 60 under the primary OMERS plan!

‘The Issue’ Income Tax Act (ITA) changes in 2005 expanded

definition of Public Safety Occupation (PSO) to include paramedics and increased maximum pension limit accrual rate from 2.0% to 2.33% for PSOs

Police and Fire are able to retire as early as age 60 with no reduction under OMERS plan

OMERS Act (2006) did not grant NRA 60 to paramedics despite federal government ITA designation

Nov. 2007 motion to extend NRA 60 failed to generate the required two-thirds majority support of the OMERS Sponsors Corporation. All Employer Reps voted against the motion.

Why This Campaign is Necessary

OMERS Sponsors Corporation expected to vote on the same issue (NRA 60) again this May or June, 2008

Need to convince Employer Reps on Sponsors Corporation to support this issue

Build support - municipal councils, public, AMO

Break deadlock - If one Employer Rep votes in favour of NRA 60, arbitration process is triggered.

Two-thirds majority vote required for automatic approval

OMERS Decision-Making Structure

OMERS Act (2006) transferred sponsorship from Ontario Government to OMERS Sponsors Corporation (SC)

OMERS Board continued as OMERS Administration Corporation (AC), responsible for plan administration, investment, and initial establishment of supplemental plan for police, fire and paramedics

OMERS SC responsible for plan design, benefit changes and contribution rates. Also responsible for future amendments to PSO supplemental plan and for establishing other supplemental plans

Current SC Composition EMPLOYER REPS UNION/EMPLOYEE REPS

Marianne Love, Co-Chair, AMO Brian O’Keefe, Co-Chair, CUPE Ontario

Bruce Stewart, AMO Ann Dembinski, CUPE Local 79

Garth PierceOntario Assn. of Police Services Boards

Bruce MillerPolice Association of Ontario

John Fleming, City of Toronto Marnie Niemi, OPSEU

Brian CainOntario Public School Boards’ Association

Fred LeBlancOntario Professional Fire Fighters Assn.

Charlie MacalusoElectricity Distributors Association

Jack JonesOSSTF

Joe AitchisonOntario Assn. of Children’s Aid Societies

Glen MillsMunicipal Retirees’ Organization Ontario

SC Voting Weighted votes

7 Employer Reps, with 2 AMO reps having 2 votes each, for total of 9 votes

7 Union/Employee Reps, with CUPE-Ontario having 3 votes, for total of 9 votes

Need 12 votes in total to obtain 2/3 majority support

3 Employer votes are required for automatic approval

1 Employer vote is required to trigger arbitration

How does NRA 60 benefit paramedics?

NRA 60 results in higher pension entitlement

Under primary plan, paramedics have an accrual rate of 2% based on best 5 years’ consecutive earnings, NRA 65, and unreduced pension with 90 points. Whereas Police and Fire can retire with unreduced pension with 85 points!

Paramedics not eligible for supplemental benefit of an 80 Factor because do not have NRA 60!

If Paramedics can negotiate the right to a NRA 60 under the primary plan, they can create an opportunity to negotiate an 80 factor under a supplemental plan in the longer term

Cost of NRA 60 OMERS Act sets out rules for moving from NRA 65 to NRA 60.

The entire period of credited past service must be treated as NRA 60

Two possible methods for achieving this: 1) The period of the member’s service while his/her

normal retirement age was 65 will be reduced by ¼ OR 2) The pension plan pays to the Fund the amount required

to ensure that the member receives the full service under NRA 60

The actual cost of past service would vary from one individual to the next, as calculated by the Plan Actuary

On a go-forward basis, contribution rates for future service would likely be set at the same level as for police and fire

Primary Plan Contribution Rates

Existing contribution rates (cost of future service):

6.5% up to YMPE / 9.6% in excess for NRA 65

7.9% up to YMPE / 10.7% in excess for NRA 60

Campaign Moving Forward

Put cost aside, for now. The most important premise is that we want the option to be able to negotiate NRA 60

We want the option to retire with unreduced pension at age 60

Paramedics should be treated the same as police and fire – we too are a Public Safety Occupation

It’s a matter of safety and fairness!

Action Plans

What Your Local Can Do: Mount a municipal lobby campaign in your

area Deliver presentation to your City Council Present resolution for Council to adopt Encourage Council to send letter to AMO

What You Can Do: Call your Mayor and/or Councillor today Write to your local newspapers Participate in upcoming rallies (April and May) Spread the word.

Questions?

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