July 4, 2016

Issue:
The new OMERS Act (The Ontario Municipal Employees Retirement System Act, 2006) came into force on June 30, 2006. This Act establishes new governance structures for the $40 billion fund: the OMERS Sponsors Corporation and the OMERS Administration Corporation. Government appointments to the new corporations were announced on June 30th.

Background:
At the request of the Minister of Municipal Affairs and Housing, AMO, and other nominating bodies identified in the Act, provided the names of representatives to be appointed by the Government to the initial Sponsors Corporation and Administration Corporation.

With the passage of Bill 206, the government has fundamentally changed the role of AMO. In addition to its advocacy mandate, AMO now has a representative role in two major corporations.

The new OMERS Sponsors Corporation was designed by the government to conduct interest negotiations between employer and employee groups. It will deal with matters like plan design and structure, types of pensions, OMERS contribution rates and the future composition of the Administration Corporation. AMO now has a legislated responsibility to appoint employer representatives to the OMERS Sponsors Corporation – and a practical responsibility to ensure that employer representatives on the Sponsors Corporation have the resources they need to protect the interests of municipalities as employers.

In addition, AMO is legislated to appoint representatives to the OMERS Administration  Corporation, which has the responsibility for investment decisions and conducting plan valuations for the $40 billion OMERS fund, and for administering the OMERS benefit program. Their responsibilities are also significant.

The AMO Board of Directors has directed AMO staff to:

  • Organize a special meeting of municipalities who are OMERS employers, during the AMO Conference in August, to discuss how AMO’s new responsibilities will be met and how related costs will be recovered; and
  • In advance of that meeting to forward a discussion paper that sets out how AMO can provide professional representation on the new Corporations and to ensure that employer representatives have the resources they need to protect municipal interests.
The discussion paper will be sent (via Clerks and Heads of Council) to municipalities who are OMERS employers along with an invitation to a special meeting of elected municipal officials on Sunday afternoon, August 13th. The paper will provide an estimate of the costs of fulfilling AMO’s new responsibilities and propose a mechanism to recover the costs from municipalities who are OMERS employers. Please watch for details.

Appointments to the news OMERS Corporations follow:
 
SPONSORS CORPORATION BOARD OF DIRECTORS *
Employer Representatives Plan Member Representatives
Garth Pierce
Ontario Association of Police Services Boards
Bruce Miller
Police Association of Ontario
Louise Eason
City of Toronto
Brian O’Keefe
CUPE (Ontario)
Brian Cain
Toronto Public School Board
Ann Dembinski
CUPE Local 79
Marianne Love
Association of Municipalities of Ontario
Fred Leblanc
Ontario Professional Fire Fighters Association
Bruce Stewart
Association of Municipalities of Ontario
Ontario Secondary School Teachers’ Federation1
Charlie Macaluso
Electricity Distributors Association
Ontario Public Service Employees Union1
Joe Aitchison
Ontario Association of Children’s Aid Societies
Glen Mills
Municipal Retiree’s Organization Ontario
* Transitional composition, subject to Sponsors Corporation by-laws.
1 These appointments are pending, subject to the government appointments process.
 
ADMINISTRATION CORPORATION BOARD OF DIRECTORS *
Employer Representatives Plan Member Representatives
Frederick Biro
Ontario Association of Police Services Boards
Police Association of Ontario1
Cam Weldon
City of Toronto
CUPE Ontario1
John Sabo
Ontario Catholic School Board Association
John Weatherup
CUPE Ontario

Association of Municipalities of Ontario1
Rick Miller
Ontario Professional Fire Fighters Association
Ann Mulvale
Association of Municipalities of Ontario
Ed De Sousa
Association of Municipal Managers, Clerks and
Treasurers of Ontario
Other Employer
Municipal Property Assessment Corporation1
International Brotherhood of Electrical Workers1
Other Employer
Toronto Hydro1
Richard Faber
Retired Member
* Transitional composition, subject to Sponsors Corporation by-laws.
1 These appointments are pending, subject to the government appointments process.

Action:
Please watch for an invitation, and information on registering for, a special meeting of OMERS Municipal employers to be held in Ottawa on August 13th at 3:30 p.m. at the Westin Hotel. AMO’s representatives on the initial OMERS Sponsors Corporation and Administration Corporation will be in attendance.