HomeMy WebLinkAboutFCS-13-178 - OMERS - Reservist Leave Change Staff Report
I r finance and Corporate Services Department wvwuukitchenerra
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: November 18, 2013
SUBMITTED BY: Michael Goldrup, HR Director, x7117
PREPARED BY: Ita Magid, Supervisor of Benefit Development, x7219
WARD(S) INVOLVED:
DATE OF REPORT: November 12, 2013
REPORT NO.: FCS-13-178
SUBJECT: OMERS — Reservist Leave Change
RECOMMENDATION:
That the Corporation elect to share the cost of purchasing credited service for reservist leaves
for its OMERS members.
BACKGROUND:
Effective January 1, 2013, OMERS implemented a Reservist leave plan change. As of this date,
employers could elect to share in the cost of purchasing credited service for its OMERS
members returning from a reservist leave. An election to share in the cost means the applicable
employees can purchase all or part of the reservist leave, converting it into credited service.
This would ultimately have a direct impact on their OMERS pension at retirement.
REPORT:
Currently an OMERS member may purchase a reservist leave by paying both the employer and
member contributions that would normally have been paid during the leave period.
Reservist leave is a unique type of leave under the OMERS Plan. In one respect, it is like other
statutory leaves such as parental leaves, emergency leaves and family medical leaves, because
it is considered to be OMERS eligible service if contributions are not made. However, unlike
these leaves where the cost is shared by the employer and the employee, contributions for a
reservist leave are currently paid entirely by the employee.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The People Plan is about making The City of Kitchener the best place to work. It is the strategy
for how the organization will support its employees so that they can be successful in the work
that they do each day.
As a sign of good faith and to support our employees who choose to defend the rights and
freedoms of others, by electing to share in the cost of maintaining OMERS credited service
during a reservist leave period, the Corporation will have a direct impact on the success and
future of its employees.
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FINANCIAL IMPLICATIONS:
Our records show that during the period of January 2011 to April 2013, there were three (3)
reservist leaves. Each leave was for a period of one (1) to two (2) months. The overall financial
implication for the employer was $4,387.08.
The employer portion of OMERS is funded through the fringe benefit portion of operating
budgets.
ACKNOWLEDGED BY: Dan Chapman, DCAO
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