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MPP defends changes to OMERS - Brad Duguid

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.

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