BYLAW - Provide Pensions for the Employees of the Municipality - 19500905 - 106550'
--·-,
)
\.
CORPORATION OF .THE .•. 'J'9litl ........... OF
·• /tJt£. BY -LAW NO. · •.••..•.......
Being a By-Law to provide Pensions for Employees
of the Municipality.
WBEREAS Paragraph 4la of Section 404 of The Municipal Act, provides that
by-laws may be pasSed by all municipalities for providing pensions for employees of
any .class thereof.
THEREFORE the Council of the Corporation of .. ~~~-~~.~~.4~~~~ ......... .
.................. •' ... ENACTS AS FOLLOWS:
1. The municipality shall enter into an employees' Retirement Annuity Contract with
North American Life Assurance Company (herein called the Company) in the form set
out in the Plan attached hereto and forming part of this by-law, and the Mayor
and the Clerk are hereby authorized and directed to execute all documents, and do
things necessary in-connection therewith, and the Clerk is hereby authorized and
directe<i to affix the seal o.f the municipality to all such documents.
2. The Council annually shall provide in the current estimates the annual sum re~
9.uired to pay for the annuities to be purchased by the municipality under the Plan
for those employees who from time to time become membe.rs of the Plan; and annually
shall pay the said sum to the Company. .,.. '>~..
_.-;:: ...
3· The Municipal Treasurer shall keep
separate aceount and shall pay same to
the
the
=~. payments by members o~ the Plan in a
Company.
4. Every employee who elects to join the Plan shall sign a form of
membership in the Plan and authorize the mu.l'licipality in writing to
salary or wages his payments under the plan.
applica"S9&
deduct(1"rom his
5. Every employee' who applies for memb('rship
this by-law at the time.of application.
in the Plan shall be given a copy of
6. Every person who becomes an employee after the effec·tive date of the Plan .shall
be refluired as a condition of his employment to join the Plan as provided therein.
7. Every employee who joins the Plan shall be deemed to have joined it upon the term'S i!~/~·
·and conditions contained in this By-law,
8. It shall be the duty of the Treasurer;
(a) To keep a list of all member employees under the Plan in which shall be set
out the name and age of each, the time when he entered the service of the
municipality, a cumulative record of his service, the amount of his salary or
wages from time to time, the name, address, age and relationship of each benefi-
ciary nominated by him under the Plan, his l'!ormal Retirement Age, and his
earlier retirement age according to the Plan.
(b) To keep a correct list of all membe~ employees and former member employees
who have retired or who have terminated their employment or whose employment has
heen terminated and the amount of the annuity to which each became or will
become entitled to under the Plan.
(c) To keep such other statistical and other records relative to the Plan as may
be required.
(d) To report to the council on or before the first day of February in each year.
(1) The names of all member employees who have retired from the service of
the municipality or have died during the last calendar year.
\
~i ·(\ ·/
10. The municipality shall provide such clerical assistance, stationery, postage,
printing, office and filing equipment as may be necessary to enable the Clerk and
Treasurer to carry out their duties under this By-law.
ll. This By-law shall not be repealed or amended so as to adversely affect the
benefits or rights· of the member employees, or any of them, nor shall the said
By-law be repealed or amended without the approval of the Department of Municipal
Affairs.
READ a first~_an~ .Second time this .•. /.~. day of#: ...•.•.. 19s'C:
READ a third time and finally passed this ... .§.. ... day of ~ ........ 19§ j)
.... ~.~.
MAYOR
CLERK
(TO BE SIGNED UNDER SEAL)
. .I
i
l.
2.
PRESENT EMPLOYEES' OPTION OF BECOMING MEMBERS OF TEE PLAN
(a) All employees on the Effective Date of the Plan, who are or who will be
eligible to become members of the Plan, will be required if males, to decide
within one year, and if females to decide within three years of the date they
become eligible, whether or not they desire to ·become members of the Plan, and,
if not, to sign a waiver to that effect.
PROOF OF AGE
The Company will require satisfactory evidence of the age of a member before
commencing Annuity Payments under the Plan.
3 . BENEFICIARY
Each Employee, on becoming a member of the Plan, may designate any person
as his Beneficiary to receive such sums as may be payable on or after his death,
reserving the right to change the Beneficiary from time to time. If, on the death
of the member, there should be no living designated Beneficiary with respect to him-
self, such sums as would otherwise be payable to his designated Beneficiary will be
payable to the legal representatives of the member.
4 • EVIDENCE OF MEMBEBSHIP
Each member of the Plan will receive from the Company evidence that he has
been included as a Member of the Plan.
:7'
5 • TERMINATION OF SERVICE
A member shall be deemed.to have finally terminated his service when, in the
oplnlon of the Employer, he has terminated his employment without reason to believe
that he will be further employed.
6. 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 ()therwise provided herein, or in the Plan.
7 . SERVICE TO COUNT TOWARDS EMPLOYER'S SHARE OF RETIREMENT ANNUITY
In computing a member's period of service towards the Employer's share of
Retirement Annuity, the following regulations shall prevail:
, Service to be included.
(a)
(b)
(c)
(d)
I
All time worked with any or all Departments of the Employer or all time
worked and paid or contributed to in whole or in part by the Employer.
All time lost on account of absence ~or reasons of illness, where a member
is paid for such absences.
All time lost on account of absence for reasons of illness, where a member
is not paid for such absence but is considered as being on sick leave.
All time lost on account of seasonal lay-offs where a member is not paid
for such absence, but who qualifies as a permanent employee.
8. 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.
BY NORTH AMERICAN ·LIFE ASSURANCE COMPANY.
DEFINITIONS
(a) Wherever used herein, "EMPLOYER" means The Corporation of the Town of Aurora.
(b)
(c)
(d)
(e)
(f')
(h)
"EMPLOYEE" shall mean any salaried officer, clerk, workman, servant or other
person in the employ of a municipality or of a local board, and as designated
by the Department shall include any person whose salary or remuneration is
paid or contributed to in whole or in part by the municipality or local board
thereof whether or not appointed by the municipality or local board.
"COMPANY" shall mean North American Life Assurance Company.
The masculine pronoun wherever used includes female employees, unless the
context indicated otherwise.
"DEPARTMENT" means The Department of Municipal Affairs for Ontario.
"PERMANENT EMPLOYEE" shall mean any employee who serves at least the equiva-
lent of.75% of a year in a year.
"MEMBER EMPLOYEE" shall mean an employee registered ·IIDder the terms of The
Retirement Annuity Contract issued in respect of the Plan.
"COMMENCEMENT DATE" shall mean the date upon which a member commences pay-
ments under The Plan.
( i) "EJ!'FECTIVE DATE" shall mean the date upon which the Pension Plan comes into
force.
l. ELIGIBILITY
(a) After the Effective Date
Each permanent male employee, 55 years of age and under,
excepting those of the Police and Fire Departments, each
permanent male employee of the Police and Fire Departments
50 years of age and under, also each female employee 50
years and under, all of whose employment commences after
the effective date of the Plan, will be eligible to become
a member of the Plan if he then:
l. Has not attained normal retirement age
as specified herein.
2. Has completed at least one year of continuous
employment with the employer or whose salary
has been paid or contributed to, in whole or in
part by the employer for at least twelve con-
tinuing months .
3· ~ach male person who becomes an employee
after the effective date of the Plan
must as a condition of employment become
a member of the Plan on the anniversary of
the effective date, immediately following
the completion of the conditions as set
out in paragraphs l and 2, provided he has
reached his twenty-first birthday.
4. Each female person who becomes an employee
after the effective date of the Plan, must
as a condition of employment become a member
_ _ro_ro_ --'--•
1. Each present permanent male employee whose
employment commenced before the effective
date of the Plan, will be eligible to become
a member of the Plan on the effective date,
provided he has not attained age 65 and has
reached his twenty-first birthday, subject
to conditions set out in :r:aragraph (a)2.
2. Each Jresent permanent female employee whose
employment commenced before the effective date
of the Plan, will be eligible to become a member
of the Plan, on the effective date, provided she
has not attained age 60 and has reached her
thirtieth birthday, subject to conditions set
out in :r:aragraph (a)2.
(c) Each employee who has volunteered or who has been drafted for military
service prior to the effective date of the Plan, or prior to becoming
eligible, and who returns to service within six months after his
discharge from military service, will be eligible to become a member
of the Plan on the first day of the month following return to work, or
following completion of the eligibility conditions.
(d) To become a member of the Plan an eligible employee must sign the
form of application provided, and authorize the required payroll
deductions.
(e) Any empr:Oyee who becomes a member of the Plan may not, except with the
consent of the -Employer, withdraw from it as long as he is an employee
and under Retirement Age. When an employee so withdraws, no further
cont.ributions will be made by him or by the Employer on his behalf under
this Plan.
2. :EMPLOYEES UNDER NORMAL REI'IREMENT AGE
The Norm~ Retirement Date·of a member will be the anniversary of the
effective date nearest the attainment of Normal Retirement Age, which is as follows:
(a) Male Employees Ex:cept Those with the Police and Fire Departments
Age nearest birthday on
Becoming a Member
Age 60 and under
Age 61
Age 62
Age 63
Age 64
Age 65
Normal Retirement Age
65th birthday
66th II
67th II
oBth "-
69th "
70th II
(b) Male Employees with the Police or Fire Departments
Age nearest birthday on
Becoming a Member
Age 35 and under
Age 36
Age 37
Age 3S
Age 39
Age 40 to 60
Age 61
Age 62
fl.~,., t.'>
Normal Retirement Age
60th birthday
6lst n
62nd "
63rd 11
64th "
65th II
66th
67th
II
II
(c) Female Employees
Age nearest birthday on
Becoming a Member
Age 55 and under
Age 56
Age 37
Ar;;e 58
Age 59
Age 60 Mil~ .......
3 . CON'l'RIBUTIONS
(a) For Fllture Service
Normal Retirement Age
60th birthday
6lst "
62nd "
63rd "
64th "
65-l?h "
(i) EMPLOYEE -Each member of the Plan will contribute 5% of his
earnings, but not to exceed $300;oo per annlllll.
(ii) EMPLOYER -For each member of the Plan the Employer will con-
tribute an amount e~ual to 5% of his earnings for service
rendered after his commencement date (hereinafter referred to
as Future Service Contributions) but not to exceed $300.00
per annll!ll.
(b) For Past Service
EMPL~YEE -Each member of the Plan will have the privilege of
making contributions for the m.imber of years of past service
during which he was not a contributor to the Plan. The total
contributions which an employee may make for past service will
be determined on the basis of 5% of his total remuneration
_ received prior to becoming a contributor to the Plan. The
payments by the employee for past service are entirely optional
and may be paid at any time or from time to ·time, but must be
paid through the Employer.
(c) The contributions of a member will be deducted from his earnings
by the Employer and remitted to t~e Company together with Employer
contributions for the same period. If the .contributions made by and
on behalf of a member become sufficient, before his retirement date,
to purchase the maximlllll annuity available to him, namely $1,200. per
year, no further contributions will be payable to the Company by the
member or by the Employer on his behalf.
(d) For purposes of this Plan, the Employer's determination of a member's
earnings and length of service shall be conclusive. The portion of a
member's earnings which exceed $6,000.00 per year shall not be taken
into consideration for purposes of calculating contributions or
benefits under the Plan.
4 . AMOUNT OF RETIBEMENT J\NNUITY
(a) Future Service (being service rendered by a member after his commencement
date). Each member of the Plan will receive, at Normal Retirement Date,
subject to the terms of this Plan, the amount of annuity purchased by the con-
tributions made by the member himself and by the Employer on his behalf for
Future Service. (See attached copy of Annual Premilllll Rates).
(b) Past Seryice. Each member of the Plan will also receive at Normal Retire-
ment Date, subject to the terms of this Plan, the amount of annuity purchased
by those contributions (if any) made by the member himself in respect of the
yeaf~-of past service in which he was not a cQll.tributor to the Plan.
(c) If, at his Normal Retirement Date, the contributions at the credit of a
member, including his own and those made by the Employer on his behalf, are not
sufficient to purchase for him an annuity of $10.00 per year, such contributions,
will be paid to the member in a lump sum.
(d) The maximum annuity that may be received by a member under this Plan is
$1,200.00 per year.
5 . PAYMENT OF RETIREMENT ANNUITY
The Retirement Annuity will commence on the retirement date of the member,
and will be payable in monthly instalments as long as he lives, provided that sixty
monthly instalments will be paid as an annuity in any event.
6. OPTIONAL TYPES OF ANNUITY
In place of the Normal Type of Annuity, as described in paragraph 6, a
member may, at any time more than five years before his retirement annuity commences
or within six months from his date of registration with the Company, choose any one
of the following types provided the cost to Employer is not hereby increased.
(a) Joint and Survivorship Annuity -providing a smaller annuity, but payable
during the lifetime of the member and another person, generally his wife,
and continuing until the death of the survivor.
{b) Annuity payable for life, but 120 annuity instalments guaranteed in any event .
(c) .-;;, Annuity·payable for life, and ceasing with the last instalment due before
the date of death.
(Information will be supplied on request by the Company as to the amount of annuity
that would be received under any one of these options) .
7 . TERMINATION OF EMPLOYMENT
(a) If f6r,any reason other than his death or early retirement (see paragraph 10),
a member should cease to be employed by the Employer prior to his Normal Retire-
ment Date, the total of the contributions which he has made under the Plan will ---
remain at his credit with the Company, to provide him with an Annuity commencing
at Normal Retirement Date.
(b) In addition, if at date of termination of service, the member has completed
at least twenty years of service, he will receive at Normal Retirement Date the
amount of annuity purchased by Future Service Contributions made by the Employer
on his behalf.
(c) Where a member ceases to be employed as provided in (a), he may surrender
his rights to all benefits under this Plan and receive a cash payment equal to
the contributions he has made to the Flan, without interest.
8. RE-EMPLOXMENT
Any member whose employment has been terminated and who is subsequently re-
employed by the Employer will, for purposes of this Plan, be considered a new employee.
9. EARLY RETIREMENT
A member may be permitted to retire on the first day of any month for reasons
of sickness or disability as determined by the Employer. The amount of annuity there-
upon payable to the Member will be on a reduced scale.
10.. DEATH BENEFITS
(a) Before Retjrement
(a) Before Retirement (Cont'd.)
death, an amount eg_ual to the contributions he has made under the l'l~n,
without interest, will be paid to his designated Beneficiary in a lump'sum.
(ii) In addition, if at date of death, the member has not terminated his
employment, but has more than 5 years of such employment, the amount eg_ual
to the Future Service Contributions, without interest, paid on his behalf
by. the Employer, will be paid to his designated Beneficiary in a lump sum.
(iii)'br, in addition, if at date of death, the member has terminated his
employment after the completion of at least 20 years of employment an amount
eg_ual to the Future Service Contributions, without interest, made by the
Employer on his behalf, will be paid to his designated Beneficiary in a
lump sum.
(b) After Retirement
If a member dies after the first instalment of his Retirement Annuity has
become due, and before sixty monthlY annuity payments have been received,
the amiuity payments will be continued to his designated Beneficiary as
they become due, until sixty monthlY payments in all have been made.
However, if a member has elected an optional type of annuity, the death
benefits, if a~, will be determined accordingly.
ll. ABSENCES FROM WORK
Authorized absences from work shall not constitute termination of employment
for purposes of ·this _Plan, but will be governed as follows:-
(a) If the member receives pay, contributions will continue and he will
be entitled to all benefits as though he were actuallY at work.
(b) If the member does not receive pay, contributions will cease but any
benefits previously purchased will. not be affected. Upon return to active
service, contributions will be resumed.
12. LIMITATION OF ASSIGNMEnT.
(a) The -Retirement Annuity and other benefits linder the Plan are not assignable,
whether by voluntary action or by operation of law.
(b) A member may not borrow against his contributions nor withdraw them at
any time.
13 . RIGHT TO EMPLOYMENT OR BENEFITS
Participation in this Plan will not give any member the right to be re-
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.
14 . ADMINISTRATION OF THE ·PLAN
The employer reserves the right to decide all matters arising in the
administration and interpretation of the Plan. It will be the obligation of the
Employer to pay over to the Company the contributions collected from the members,
toge.tlier with the contributions reg_uired to be made by the Employer under the Plan,
and it will be the obligation of the Company to pay benefits in accordance with con-
tributions received.
15 . CHANGE OR MODIFICATION
The Emplqyer hopes and expects to continue the Plan indefinitely, but
reserves the right to change or modify it at any time, subject to the approval
of the Department of Municipal Affairs, Toronto. Any change or modification in