SUPPORT PENSION IMPROVEMENTS AND LOBBY TO IMPROVE LEGISLATION
We want to make pension benefit improvements to offset the impact of inflation and we need all Locals, committees, active and retired members actively engaged.
Send a letter to your elected officials to show your support in making Pension Improvements for all Millwrights across Ontario.
The Millwright Regional Council of Ontario Pension Plan is a Multi-employer Defined Benefit Pension Plan (MEPP) registered with the Financial Services Regulatory Authority of Ontario (FSRA) and Canada Revenue Agency (CRA). The Plan is also designated as a Specified Ontario Multi-Employer Pension Plan (SOMEPP).
The Fund must be administered in accordance with the terms of the pension plan and the applicable legislation, however we are being restricted by criteria that does not allow us to make pension improvements, such as providing an increase to retirees.
PENSION BENEFIT
We want to make pension benefit improvements to offset the impact of inflation and we need all Locals, committees, active and retired members actively engaged to lobby the Ontario Government to do the following:
- Release permanent funding rules for MEPPs – removing the requirement to fund on a solvency basis permanently.
- Release permanent funding rules for MEPPs with the regulations supporting an implementation period of at least five (5) years to allow for efficient implementation.
- Ontario has not adopted the Canadian Institute of Actuaries (CIA) revised section 3570 of the practice-specific standards for pension plans amending the calculation of commuted values from the solvency basis to the going concern basis for plans like ours, which would result in a savings to the pension plan when paying benefits to former members. At a time of unprecedented low interest rates, not allowing the adoption of this standard has resulted and will continue to result in further losses to MEPPs. The calculation method provided by these standards were already permissible for arrangements in BC and Alberta prior to the CIA revisions and has been adopted by most other provinces since their release.
- When setting the basis for the Provision of Adverse Deviation (PfAD), it should be reasonable and not excessive i.e., in the 5 – 8% range and should be stable year over year i.e., not variable based on external factors like the levels of interest rates. Ideally, the size and application of a PfAD should be left to the Trustees subject to actuarial advice rather than imposed by legislation.
- Extend the minimum amortization period for unfunded liabilities created by poor experience (including crises) to 15 years;
- Benefit improvements may be implemented provided that the MEPP has sufficient contributions to fund the benefits after the improvement whether the plan is fully funded including a less than funded PfAD.
ENGAGE YOUR MEMBERSHIP
This call to action is a priority for all Locals to engage your membership to actively lobby the Ontario government and reach out to your local MPP for change. The landscape is changing every day, with new rules and criteria on the horizon making it more difficult to make the improvements we want.
The time is now for all Political Action Committees to organize and work with politicians to lobby change. The Millwright Regional Council of Ontario is committed to lobbying efforts and providing the best plan achievable for all our members.
