More than 360,000 Ontarians are part of the
Ontario Municipal Employees Retirement System (OMERS). They pay
into this plan and rely on it for their future livelihood.
That's why it's so important that when we talk about people's
pension plans, we do it honestly. And that's why it's important
everyone know that nobody's pension is being reduced by Bill
206.
While municipal employees and employers
contribute to the OMERS plan, it is the province that currently
governs the plan. Our proposed new model puts control where it
belongs: in the hands of the employees and employers who pay
into and benefit from the plan.
We've listened to concerns from both sides -
employees and employers. Based on that input, our government
has introduced numerous amendments to improve this bill.
Some disgruntled stakeholders are trying to
incite fear by arguing current pension rights will be taken
away, or taxpayers will have to pay more. That's not what our
proposed model does.
While protecting existing pensions, our new
proposal will allow supplemental benefits to be negotiated
locally. Those supplemental benefits for our police officers,
firefighters and paramedics would be paid for by those
employees and employers, split 50/50. No one would pay for a
supplemental benefit they do not receive.
The new proposed model further limits each
employer to only one additional supplemental benefit initially,
and a three-year period before another can be added.
And it ensures explicitly the defined-benefit
plan that thousands of Ontarians rely on cannot be raided to
pay for any supplemental plans. Period.
Some pensioners receiving monthly payments
from OMERS have the mistaken impression that their pensions are
in peril. Nothing in our proposed legislation changes the terms
of existing pension payments. In fact our proposed model, for
the first time, gives OMERS pensioners a vote in how the plan
is governed.
It's time to give control of the OMERS
pension plan to those Ontario workers and employers who pay
into and benefit from it. That's what our model does.
Brad Duguid
Parliamentary Assistant
(Urban Affairs)
Ministry of Municipal Affairs
and Housing