HomeMy WebLinkAboutBy-law 2571 TH~ COkPOk~TION Of TR~ ...... OF .... · ....
Being a By-law to provide Pensions for Employees
UHI~Ji~S The Municipal Act provides that by-laws may be passed
by all municipalities for providing pensions for employees or any
claes thereof.
ENACTS AS FOLLOVS:
1. The municipality shall in accordance with the provisions ,,f the
Plan attached heret~ and forming part of this by-law, by Contract
.,~. provide pensions for its employees, and the Head of Council and the
Clerk are hereby authorized and directed to execute all documents, and
do all things necessary in connection therewith, and the Clerk is here-
by authorized and directed to affix the seal of the municipality to all
such documents.
2. The Council annually shall provide in the current estimates the
sum required to pay for the annuities to be purchased by the mu~icipa.lity
~]~,,~under the Plan for those employees who from time to time become members
of the Plan,-- and annually shall pay the said sum ln~i)~'__A~] instalments
/ to the Government or the Insurer, after such employees have completed
the service earning thc contributions by the municipality~
3. The P, unicipal Treasurer shall record the payments by members of
the Plan in a separate account and shall re~t same to the Government
or the Insurer.
\. (a) The Municipal auditer shall audit all transactions
in c*~nection with the pension plan and shall report
annually to the municipal council and his report
shall be contained in the annual municipal audit.
Every employee who elects to Join the Plan shall sign a form
application for membership in the Plan which shall authorize the
municipality in writing to deduct from his salary or wages hie
under the Plan.
Page 2,
~ · ~ IIl~.(~'ee ~o ~p~.ie. for m.la~-I~ ~ ~he P~ e~ ~
~L~ giv~ a ~ o~ t~s ~-~ at the t~ o~ ~p~ti~.
6. E~ ~ ~ bec~s ~ ~1~ ~ the eff~tive ~te
,_':) e~ the P~ s~11 be r~r~ as a c~iti~ of his ~l~t ~ Jo~
~ the P~ aa ~id~ there,.
~ 7. Eve~ ~loyee ~o Jo~s the P~ s~ll be de~ to ~ve
~tt Join~ it u~ the te~ ~d conditions c~ta~ ~ this By-law.
8. It s~H be the ~ty of the Tr~eu~r:
(a) To ke~ a list of ~ ~ ~loyeee ~der the P~
~ w~ch s~ be e~ out the n~e ~d age of ~ch,
the t~ ~ he enter~ the se~ice of the ~ici-
~ty, a c,~,~tive reco~ ef his se~ice, the
~t of his sa~ or wages f~m t~ to t~, the
~e, ad~s, age ~d relationship of each
b~efic~ no~t~ ~ h~ ~der the P~, his
Noel Retir~t Age, ~d his ~lier ret~t ~e
acco~ to the P~.
(b) To ke~ a co~t list of aH ~ber ~l~s ~
~ foyer m~er ~l~ees who ~ retir~ ~ ~o ~ve
, / te~t~ their ~l~t or ~ese e~l~t ~s
~ b~ te~at~ ~ the ~o~t of the ~uity ~
~ch ~ch bede or ~11 become entitl~ te ~er
the Pi~.
(c) To keep such ot~r statistical ~d other reco~s
re~tive to the P~ as ~y be r~uir~.
(d) To r~ to the co~cil on or before the f~st ~
of Feb~a~ ~ each ~ar.
(1) The n~e of ~1 m~r e~l~eee ~o ~ve
r~ir~ f~m t~ se~ce of the ~icip~ty
or ~ve di~ dur~g the last cal~d~ year.
(2) The sal~ or wages of ~ch ~ber e~l~ee
at the t~e of ~s r~ent or d~th.
(3) The cause of retir~t.
P~e ~.
1 (e) ~er~lly to do all thirds neceaaary in
~h ~ a~st~ion o~ the p~.
9. ~ ~ ~1~ ~ c~ ~o be en~i~l~ ~ ~e ~i~
before ~a ~ or earlier r~ir~t ~e on acco~ of di~bi~t7
a~l ~e ~a c~ to the ~r~surer ~o shall ~ ~he~n ~G
c o~cil.
10. The ~ic~ty sha~ p~vide such oleri~l assis~ce,
~tation~, ~, pr~t~g, office ~d fil~ ~ui~t a~ ~y be
neces~ ~ ~ble the Clerk ~d Tr~surer to car~ out their duties
under t~s ~-~w.
11. ~ ~-law shall not be ~end~ so as to adverse~ ~fect the
benefits or ri~ts of the m~ber e~l~ees, or any of them, or be
r~ed ~ess each ~endm~t or r~eal shall first have been ass~t~
to by a ~Jerity vote of aH m~ber ~l~y~s; nor sha~ the said
By-~w be r~l~ or am~d~ without the approval of the D~ar~ent of
M~ici~l Affairs.
12. THAT By-Laws N~bers 1876 and 2111 be and the
aP~
hereby repealed. ~.~
~a~ ~ f~ ~a ~eoM ~* ~h~ ..~.~0~7 of ......
READ a thi~ t~e ~d fi~y pass~ this/~ day o~ 19~/
~ ~YOR~
PLAN FOR THE T0~SP~IP OF PIOEE~L1NG
1. DEFINITIONS -
In this plan,
(a) "Employer" means Township of Pickering;
(b) "employee" means any salaried officer, clerk, work~n, servant
or other person in the employ of the municipality or of a local
board, and shall include any person designated as an employee
by the Minister of Municipal Affairs of the Province of Ontario;
(c) "Insurer" means The London Life Insurance Company of Canada;
(d) "words importing the masculine gender include females unless
the content indicates otheE~iAe";
(e) "Department" means The Department of Municipal Affairs of the
Province of Ontario;
(f) "permanent employee" means any employee who serves at least
the equivalent of 75% of a year in a year;
(g) "member employee" or "member" means an employee registered
with the Insurer under the terms of the retirement annuity
Policy issued in respect to the Plan to provide Retirement
Annuities for employees of the Employer;
(h) "Guaranteed Period" means the number of months the normal form
of Retirement Annuity provided by the Plan shall be payable in
any event and is ~e humdred and twemty (120) months;
(i) "Entry Date" means the date on which a member employee commences
payments under the Plan.
(j) "Effective Date" means the date upon which the Plan comes into
effect, January 1, 1961.
(k) "Past Service Annuity" means any annuity provided by the Plan
for service prior to the Effective Date and the ~mount of such
annuity, if any, shall be determined in accordance with the
following formula:
No Past Service Azmuity banefit is provided under this
Plan.
(1) "Policy anniversary date" means January 1, 1962
or any subsequent Ja~,,awy 1.
O~-3 -6O 1
ElffGIBILITY -
(1) (a) Every permanent employee who is employed when the pension
plan comes into effect shall have the right to Join the
plan within one month of that date if he is under normal
retirement age and ha~ completed one d ay of co~tinuous
(b) Every permanent employee who is employed when the pension
plan comes into effect and is not then eligible shall have
the right to join the plan on the first day of the month
following completion of the eligibility conditions of
clause (a) or within one month following that date.
(c) If a permanent employee, referred to ahoy% does not elect
to join the plan within the time stipulated he shall not be
entitled to any contributory payment by the Employer in
respect to past service in 1 (k).
(2) Permanent employees entering the service of the E~ployer
after the effective date must become members of the plan
on the first day of the month following completion of the
eligibility conditions, pro¥ided they are permanent
employees and are then under normal retirement age. The
eligibility condition shall be .ix months ef eont~nuou~
Any permanent maployee in 'the employ of the Employer on the
Effective Date not Joining the Plan by the first of the month
next following the date he becomes eligible to do so shall
not be entitled to any contributions on his behalf by the
Employer for service prior to the date he actually joins the
Plan.
(4) To become a member of the Plan, an eligible employee must
complete the prescribed form of application, which shall
authorize the required payroll deductions.
(5) Any employee who becomes a member of the Plan shall be
required to participate in the pension plan so long as he
is an employee and under the normal retirement age appli-
cable to the member.
NORMAL BETIREMEI~T DATE AND AGE -
The normal retirement date will be the first of the month coinciding
with or next following attair~.~ent of normal retirement age. The
normal retirement ages shall be as follows:
Male employees: Police, aec& Fireman -60
Other male. - 65
Female employees:
0MB-8-60 - 2 -
4. CONtRIBUTIOnS -
(a) Each member will contribute 5% of his earnings from the date
of his inclusion in the Plan in respect to future service.
(b) The Employer will ~emtribute on behalf of each member an
amount equal to 5% of the member's earnings from the date of
his inclusion in the Plan in respect of future service and
also the cost of any Past Service Annuities if provided for
by the Plan.
(c) Each member may pay an additional contribution calculated as
a percentage of his salary or wages in respect of future service
provided that such additional contributions together with the
contribution required to be mede by the member in accordance
with subsection (a) above shall not exceed Fifteen Hundred
Dollars ($1500.) in any calendar year, or ouch amount ac may
be hereafter specified under the Income Tax Act as the maximum
contribution.
(d) The contributions of a member will be deducted from his
earnings by the Employer and remitted to the Insurer quarter-
yearly in arrear together with the Employer contributions.
(5) RETIREMENT ANNUITY -
(1) For Service after Joining the Plan
Subject to the terms of the Plan, each member will receive
from the date of his retirement, in respect of future ser-
vice, ~he annuity purchased by his own contributions and
those made on his behalf by the Employer, together with
interest thereon°
(2) For Service prior to joining tho Plan
Subject to the terms of the Plan, each member who Joined
the Plan on the Effective Date, or, if then eligible,
within one month after the Effective Date, will receive in
addition any Past Service Annuity to which he may be
entitled under the terms of subsection i (k) above which
has been purchased through the contributions made therefor
by the Employer and the interest earned on such contributions.
(6) PAYMENT OF RETirEmeNT ANNUITY -
The Retirement ~mnuity will commence on the first day of the
calendar month coinciding with or Immediately following the attain-
ment of retirement age by the member and will be payable in monthly
instalments as long as he lives, provided that in any event payments
will be continued for the Guaranteed Period unless an optional type
of annuity has been elected under Section 7.
(?) OPTIONAL TYPES OF ANNUITY -
(1) In place of the normal type of annuity, as described in Section
6 above, a membor employee may at any time more than two years
before his retirement annuity commences or within three months
from his date of registration with the Insurer choose any one
of the following types provided the cost to the F~mployer is
not thereby increased:
(a) a joint and last survivor annuity providing a smaller
annuity but payable during the lifetime of the m~mber
employee and another person, generally his wife, and
continuing untS1 the death of the survivor.
.0~-3-60 - 3 -
(b) an Annuity payable for life but with instalments
guaranteed in any event for 60, 120, 180 or 240
months. The consent of his beneficiary will be required
if the number of months guaranteed is less than the
Guaranteed Period.
(2) Provided that a member has not chosen the joint and last
survivor type of annuity, ~ may elect at any time prior
to retirement that the terms of payment of the annuity be
altered to provide for an annuity payable for life, the
amount of which would be increased for the interval between
his retirement date and the date at which the 01d Age Security
Act Pension will commence, and thereafter be decreased by the
amount of the 01dAge Security Act Pension. This option
shall not be available if the amount of the decreased monthly
payment would be less than $10.O0. (Information will be
supplied by the Insurer on request as to the approximate
amount of annuity that would be ~ceived.)
8. TERMINATION OF EMPLOYMEh~
Subject to subsection 3, payments under this plan shall not be withdrawn
except
(1) where an employee leaves the service of the municipality or local
board before reaching normal retirement age and the monies standing
to the credit of the employee will produce et normal retirement date
an annuity of less than $120.00, the employee shall be paid a sum
not less than his contributions; or
(2) where an employee leaves the service of the municipality or local
board for the reason that he has become permanently unemployable
because of mental or physical disability as established by medical
evidence satisfactory to the employer, the employee shall be paid
the amount standing to his credit unless he elects to receive a
pension commencing in the month after the date he leaves the service
of the municipality or local board and computed in the manner, pro-
vided in mubsection 3.
(3) Subject to section 16 (1) where an employee leaves the service of
the municipality or local board before reaching normal retirement
age he shell receive a paid-up policy providing for such annuity
as the funds standing to his credit together with interest thereon
will then purchase, commencing on the retirement date and payable
in periodic instalments.
9. RE-EMPLOYMENT -
Any member whose employment has been terminated and who is sub-
sequently re-employed by the Employer, will, for purpose of this
Plan be considered as a new employee.
10, ASSIGNMENT AND VESTING
(a) Except as provided in section 16(1) there shall be no assignment
or transfer or any annuity or any instalments payable under this
plan.
(b) A member may not borrow againzt his contributions and may only
withdraw them at any time es provided in section 8(1), 8(2) and
16 (1).
(c) Subject to sections 8(1)~ 8(2) and lO (a), all payments of the
municipality or local board and an employee together with interest
on the sum of both shell vest in the employee when paid or earned.
11. POSTPONED BETIi~NT -
Under this Plan, subject to the consent of the Employer, a member m~y
be permitted to remain in the service of the Employer after his normal
retirement date. In this event:
(a) service after such date shall be for e period of one year renew-
able by the Employer for periods of one year each, and
(b) his Retiren~nt Annuity shall not commence until the first day of
the month coinciding with or ne~t following his date of actual
retirement from service, and ahall be increased actuarially in
recognition of such postponement, and
(c) the member may elect that his contributions and those of the
Employer either (i) both cease, or, (ii) both continue until his
actual retirement. However, in the event that the member elects
the contributions continue, all contributions shall nevertheless
cease when the annual amount of pension~at the credit of the
member is equal to 60% of his average annual salary for the pre-
ceding three years of his service.
12. DEATH BENEFITS -
(1) Before Retirement
(a) If a member dies before his actual retirement date
whether or not he is in the employ of the Employer at the
date of death, an amount equal to the contributions he has
made under the Plan with interest thereon up to the date
of death, together with an amount equal to the contributions
made on his behalf by the Employer, with interest thereon
up to the date of death, will be paid to hie beneficiary
named under the plan, or if none is named, to his estate,
in a lump sum.
(b) A member may elect that the death benefit described in
the preceding paragraph be paid to a designated beneficiary
of his estate in accordance with cue of the options below.
If at thetime of death of the mender the member has not
made any such election, the beneficiary of his estate may
elect that the death benefit be paid in instalments in
accordance with one of the options below.
The options are as follows:
(i) An annuity certain
(ii) A life annuity guaranteed for a period of 10, 15 or
20 years on the life of the beneficiary
(2) After Retirement
If a member dies on or after his actual retirement date and
before payments for the Guaranteed Period h~ve been completed,
payments will be continued to his beneficiary named under the
plan, or if none is named, to his estate until the balance of
the payments for the guaranteed period have been made. However,
if a member has elected an optional type of annuity, the death
benefits if any, will be determined accordingly.
13. ABSENCES FROM WoRK -
Authorized absences from work shall not constitute termination of
employment for purposes of this Plan, but will be governed ae
follows:
(1) If the member receives pay, contributions will continue
and he will be entitled to all benefits as though he was
actually at work.
(2) If the member does not receive pay, contributions will cease,
but any benefits previously purchased will not be affected.
Upon retturn to active service, contributions will be resumed.
·The annual am~t efpemeion eh~11 include that to the credit of the employee
under the plan in effect to December31, 1960.
OMB-ii-60
14. RIGHT TO EMPL0t%ENT OR BENEFITS -
P~rticipation in this Plan will not give any member the right to be
retained in the service of the Employer, or any right or claim to
benefits, unless the right to such benefits has specifically accrued
under the terms of this Plan.
15. ADMINISTRATION OF THE PLAN -
The Employer reserves the right to decide all matters arising in the
aSm~nistration and interpretation of the Plan, subject to the terms
of the Retirement Annuity Contract. It will be the obligation of the
Employer to pay over to the Insurer the contributions collected from
the members, together with the contributions required to be made by
the Employer under the Plan and it will be the obligation of the Insurer
to pay benefits as set out in this Plan in accordance with contributions
received.
16. TRANS~'~ 0F PENSION FUNDS -
(1) Where an employee, on or after the first day of March, 1948 has
become or becomes a member of,
(a) the civil service of Ontario or Canada,
(b) The civic service of any other municipality or local board, or
(c) The staff of any board, commission or public institution
established under any Act of the Legislature,
the Employer shall, on the written request of the employee, by
by-law or resolution authorize the transfer of 8nd shall transfer
a sum equal to the credit of the employee in this Plan including
the payments and deductions made by the Employer and employee
together with interest thereon, to any like fund or plan maintained
to provide superannuation benefits or pensions for the members of
such civil or civic service or staff, ss the case m~y be where such
fund or plan allows such transfers thereto.
(2) Where a member of,
(a) the civil service of Ontario or Canada,
(b) the civic service of any other municipality or local board, or
(c) the staff of any board, commission or public institution
established under any Act of the Legislature.
on or after the first day of March, 1948, has become or becomes
an employee of this Employer, and a sum of money is transferred
from any fund or plan maintained to provide superannuation benefits
or pensions for the members of such civil or civic service or staff,
as the case may be, to the credit of the employee, the Employer
shall by by-law or resolution authorize the transfer into and shall
transfer into this Plan the said sum applicable to the employee in
the like manner as a payment for past service.
- OMB-3-60 -6 -
REGULATIONS UNDER THE I~LAN
1. PROOF OF AGE -
(a) At the time of Joining the Plan, or as soon thereafter as
possible a member will send to the Insurer a birth or
baptismal certificate, as proof of his date of birth. The
birth or baptismal certificate will be returned to the member.
(b) If a birth or baptismal certificate cannot be obtained, the
member will submit a Statutory Declsration as to the date of
birth by parent, or a copy of the entry of his date of birth
in the family Bible, certified to be a true copy by a Lawyer,
Justice of the Peace, Notary Public or Commissioner for Taking
Oaths.
(c) If such cannot be obtained, the member will submit a Statutory
Declaration by a responsible person having cause to know of
his date of birth, stating that no other documentary proof of
age can be obtained.
(d) If such cannot be obtained, the member will h~m~elf submit a
Statutory Declaration as to his date of birth stating that no
other proof of age can be obtained.
2. EVID~2~CE OF ~MBE~SHIP -
Each member of the Plan will receive from the Insurer evidence that
he has been included as a member of the Plan.
3. TERMINATION OF SERVICE -
A member shall be deemed to have finally terminated his service when,
in the opinion of the Employer, he has terminated his employment without
reason to believe that he will be further employed.
4. SUSPENSION OF SERVICE -
A member shall be deemed to have suspended his service when he is
temporarily off duty without pay for any reason other than on account
of illness or accident, except as otherwise provided herein, or in
the Plan.
5. DISABILITY -
"Disability" as set out in the Plan shall be interpreted to mean that
a member has furnished medical testimony, satisfactory to the Employer,
that he is unable to continue further at his employment.
- OMB-3-60 7