Item - 2013.GM21.9
Tracking Status
- City Council adopted this item on May 7, 2013 with amendments.
- This item was considered by Government Management Committee on April 8, 2013 and was adopted with amendments. It will be considered by City Council on May 7, 2013.
GM21.9 - Toronto Transit Commission (TTC) Pension Fund Society (Society): Preliminary Analysis, OMERS Options
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on May 7, 8, 9 and 10, 2013, adopted the following:
1. City Council request the Toronto Transit Commission and the Board of Directors of the Toronto Transit Commission Pension Fund Society, working co-operatively with the Ontario Municipal Employees' Retirement System (OMERS), to re-assess the benefits of a possible merger of the Pension Fund Society Plan into the OMERS Plan once the regulations dealing with the mechanics of plan mergers are in place under the Pension Benefits Act, and within a year of the regulations being filed.
2. City Council request the Toronto Transit Commission and the Board of Directors of the Toronto Transit Commission Pension Fund Society to apply to the Ontario Ministry of Finance and the Financial Services Commission of Ontario (i.e., the Ontario pension Regulators) again requesting an exemption from the statutory obligation to continue past solvency deficit payments to the Fund of the Pension Fund Society Plan given that effective January 1, 2011 the Plan has been a recognized Jointly Sponsored Pension Plan and that any correspondence pertaining to the exemption request be made available to the Government Management Committee.
3. City Council request the Toronto Transit Commission and the Board of Directors of the Toronto Transit Commission Pension Fund Society (working with independent external legal advisors), to conduct a formal legal review of the Pension Fund Society's plan documents to ensure transparency in governance and decision making responsibilities, and to ensure consistency between the Society's Bylaws and other policy documents including the Society's Funding Policy and that this be completed and reported back to the October 15, 2013 Government Management Committee meeting.
4. City Council request the Toronto Transit Commission to report back to the Government Management Committee on the outcome of the foregoing recommendations once each is completed and that the Government Management Committee be kept apprised of the status of each recommendation in this report every six months or as circumstances warrant.
5. City Council authorize the release of Confidential Attachment 1 to the report (March 22, 2013) from the Treasurer if an agreement to merge the Toronto Transit Commission Pension Fund Society Plan with OMERS is approved by the Plan Sponsors (i.e. Toronto Transit Commission and Amalgamated Transit Union Local 113), or the Society authorizes such release and as determined by the City Solicitor, but that it be released on a confidential basis now to the affected parties including the Toronto Transit Commission, the Pension Fund Society and OMERS officials.
6. City Council request that the Toronto Transit Commission Pension Society Board expedite the recruitment of an external Chief Executive Officer for the Pension Fund Society.
7. City Council adopt the confidential recommendation, as amended, contained in the letter (April 8, 2013) from the City Clerk and that this recommendation remain confidential in accordance with the provisions of the City of Toronto Act, 2006 as it pertains to the security of the property belonging to the City.
Confidential Attachment 1 to the report (March 22, 2013) from the Treasurer remains confidential in its entirety at this time in accordance with the provisions of the City of Toronto Act, 2006 as it pertains to the security of property belonging to the City. Confidential Attachment 1 will be made public once an agreement to merge the Toronto Transit Commission Pension Fund Society Plan with OMERS is approved by the Plan Sponsors, or the Society authorizes such release and as determined by the City Solicitor.
The Confidential Recommendation, as amended, contained in the letter (April 8, 2013) from the City Clerk remains confidential in accordance with the provisions of the City of Toronto Act, 2006 as it pertains to the security of the property belonging to the City.
City Council Decision Advice and Other Information
City Council recessed its public session and met as Committee of the Whole in closed session on May 7, 2013, and considered confidential information on this Item as pertains to to the security of the property belonging to the City.
Confidential Attachment - The security of the property of the municipality or local board
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-57159.pdf
(March 22, 2013) Confidential Attachment 1 - Report from Buck Consultants (March 8, 2013), "Review of the Second Report on the Preliminary Analysis of OMERS Options Toronto Transit Commission Pension Fund Society (PFS) and the Toronto Transit Commission (TTC) Report dated September 26, 2012"
Communications (Committee)
https://www.toronto.ca/legdocs/mmis/2013/gm/comm/communicationfile-35599.pdf
Motions (City Council)
May 7, 2013 - 7:43 p.m. – Speaker Nunziata advised that City Council had completed its closed session consideration of Item GM21.9 headed "Toronto Transit Commission (TTC) Pension Fund Society (Society) – Preliminary Analysis, OMERS Options".
City Council has given confidential instructions to staff in closed session.
That City Council amend Government Management Committee Recommendation 7 by adding the words "and that this recommendation remain confidential in accordance with the provisions of the City of Toronto Act, 2006 as it pertains to the security of property belonging to the City" so that the Recommendation now reads:
7. City Council adopt the confidential recommendation contained in the letter (April 8, 2013) from the City Clerk and that this recommendation remain confidential in accordance with the provisions of the City of Toronto Act, 2006 as it pertains to the security of property belonging to the City.
Vote (Amend Item) May-08-2013 3:27 PM
| Result: Carried | Majority Required - GM21.9 - Ainslie - Motion 1 |
|---|---|
| Total members that voted Yes: 36 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), John Parker, James Pasternak, Gord Perks, Jaye Robinson, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 9 | Members that were absent are Ana Bailão, Gary Crawford, John Filion, Mary Fragedakis, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, Anthony Perruzza, David Shiner |
That Council adopt the confidential instructions to staff, as amended.
Vote (Amend Item) May-08-2013 3:28 PM
| Result: Carried | Majority Required - GM21.9 - Ainslie - Motion 2 |
|---|---|
| Total members that voted Yes: 37 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 8 | Members that were absent are Ana Bailão, Gary Crawford, John Filion, Mary Fragedakis, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, David Shiner |
Adoption of Government Management Committee Recommendation 1.
Vote (Adopt Item) May-08-2013 3:29 PM
| Result: Carried | Majority Required - GM21.9 - Adopt Government Management Committee Recommendation 1 |
|---|---|
| Total members that voted Yes: 25 | Members that voted Yes are Paul Ainslie, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, John Filion, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), Jaye Robinson, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 13 | Members that voted No are Maria Augimeri, Josh Colle, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mike Layton, Mary-Margaret McMahon, Joe Mihevc, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Karen Stintz |
| Total members that were Absent: 7 | Members that were absent are Ana Bailão, Gary Crawford, Mary Fragedakis, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, David Shiner |
Adoption of balance of Item, as amended.
Vote (Adopt Item as Amended) May-08-2013 3:30 PM
| Result: Carried | Majority Required - GM21.9 - Adopt the balance of the item as amended |
|---|---|
| Total members that voted Yes: 36 | Members that voted Yes are Paul Ainslie, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 2 | Members that voted No are Maria Augimeri, Karen Stintz |
| Total members that were Absent: 7 | Members that were absent are Ana Bailão, Gary Crawford, Mary Fragedakis, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, David Shiner |
GM21.9 - Toronto Transit Commission (TTC) Pension Fund Society (Society): Preliminary Analysis, OMERS Options
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Confidential Attachment - The security of the property of the municipality or local board
Committee Recommendations
The Government Management Committee recommends that:
1. City Council request the Toronto Transit Commission and the Board of Directors of the Toronto Transit Commission Pension Fund Society, working co-operatively with OMERS, to re-assess the benefits of a possible merger of the Pension Fund Society Plan into the OMERS Plan once the regulations dealing with the mechanics of plan mergers are in place under the Pension Benefits Act, and within a year of the regulations being filed.
2. City Council request the Toronto Transit Commission and the Board of Directors of the Toronto Transit Commission Pension Fund Society to apply to the Ontario Ministry of Finance and the Financial Services Commission of Ontario (i.e., the Ontario pension Regulators) again requesting an exemption from the statutory obligation to continue past solvency deficit payments to the Fund of the Pension Fund Society Plan given that effective January 1, 2011 the Plan has been a recognized Jointly Sponsored Pension Plan and that any correspondence pertaining to the exemption request be made available to the Government Management Committee.
3. City Council request the Toronto Transit Commission and the Board of Directors of the Toronto Transit Commission Pension Fund Society (working with independent external legal advisors), to conduct a formal legal review of the Pension Fund Society's plan documents to ensure transparency in governance and decision making responsibilities, and to ensure consistency between the Society's Bylaws and other policy documents including the Society's Funding Policy and that this be completed and reported back to the October 15, 2013 Government Management Committee meeting.
4. City Council request the Toronto Transit Commission to report back to the Government Management Committee on the outcome of the foregoing recommendations once each is completed and that the Government Management Committee be kept apprised of the status of each recommendation in this report every six months or as circumstances warrant.
5. City Council authorize the release of Confidential Attachment 1 to the report (March 22, 2013) from the Treasurer if an agreement to merge the Toronto Transit Commission Pension Fund Society Plan with OMERS is approved by the Plan Sponsors (i.e. Toronto Transit Commission and Amalgamated Transit Union Local 113), or the Society authorizes such release and as determined by the City Solicitor, but that it be released on a confidential basis now to the affected parties including the Toronto Transit Commission, the Pension Fund Society and OMERS officials.
6. City Council request that the Toronto Transit Commission Pension Society Board expedite the recruitment of an external Chief Executive Officer for the Pension Fund Society.
7. City Council adopt the confidential recommendation contained in the letter (April 8, 2013) from the City Clerk.
Decision Advice and Other Information
The Government Management Committee recessed its public session and met in closed session to consider confidential information on this item as it involves the security of the property of the municipality or local board.
Origin
Summary
In response to a request from the Government Management Committee, this report summarizes the outcome of a review undertaken by the Treasurer, in consultation with a third party consultant/actuary, with respect to:
a. a report from OMERS Administration Corporation titled "Second Report on the Preliminary Analysis of OMERS Options — Toronto Transit Commission Pension Fund Society" (OMERS Report); and
b. a communication (dated September 26, 2012) from the Toronto Transit Commission Pension Fund Society (PFS) to the Chair of the Toronto Transit Commission (TTC) concerning the OMERS Analysis and advising that for reasons identified in the communication, the PFS Board was not willing to pursue a potential merger of the PFS pension plan (PFS Plan) with the Ontario Municipal Employees Retirement System Plan (OMERS Plan), but that the Board might consider the OMERS Investment Management Inc. fund as a candidate to invest some of the Pension Fund Society's assets as part of a competitive search and due diligence process.
The Treasurer's review has focussed on both the interests of the City of Toronto and the fiduciary responsibilities of the Pension Fund Society (PFS).
Background Information
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-57159.pdf
(March 22, 2013) Confidential Attachment 1 - Report from Buck Consultants (March 8, 2013), "Review of the Second Report on the Preliminary Analysis of OMERS Options Toronto Transit Commission Pension Fund Society (PFS) and the Toronto Transit Commission (TTC) Report dated September 26, 2012"
Communications
https://www.toronto.ca/legdocs/mmis/2013/gm/comm/communicationfile-35599.pdf
Speakers
Motions
10:45 a.m. - That the Government Management Committee recess its public session to meet in closed session to consider Item GM21.9 “Toronto Transit Commission (TTC) Pension Fund Society (Society): Preliminary Analysis, OMERS Options”, as the matter relates to the security of the property of the municipality or local board.
That Recommendation 2 in the report (March 22, 2013) from the Treasurer be amended by adding "and that any correspondence pertaining to the exemption request be made available to the Government Management Committee".
That Recommendation 4 in the report (March 22, 2013) from the Treasurer be amended by adding the words "and that the Government Management Committee be kept apprised of the status of each recommendation in this report every six months or as circumstances warrant".
That Recommendation 3 in the report (March 22, 2013) from the Treasurer be amended by adding the words "and that this be completed and reported back to the October 15, 2013 Government Management Committee meeting".
That Recommendation 5 in the report (March 22, 2013) from the Treasurer be deleted and replaced with the following:
5. City Council authorize the release of Confidential Attachment 1 to the report (March 22, 2013) from the Treasurer if an agreement to merge the Toronto Transit Commission Pension Fund Society Plan with OMERS is approved by the Plan Sponsors (i.e. Toronto Transit Commission and Amalgamated Transit Union Local 113), or the Society authorizes such release and as determined by the City Solicitor, but that it be released on a confidential basis now to the affected parties including the Toronto Transit Commission, the Pension Fund Society and OMERS officials.
That City Council request that the Toronto Transit Commission Pension Society Board expedite the recruitment of an external Chief Executive Officer for the Pension Fund Society.
That City Council adopt the confidential recommendation contained in the confidential letter (April 8, 2013) from the City Clerk.