For active membership approval June 24, 2023
Plan Updates
The following notice outlines affordable Plan updates that have been approved by the TTC Pension Plan Board of Directors after careful consideration, based on the Plan’s actuarial reports. Please be advised that additional approval is required on these enhancements, which will be presented to the TTC Board on June 12, 2023, and to the members for approval at the Annual General Meeting (AGM) on June 24, 2023, before the updates come into effect.
All active members and retired members are welcome to attend. Only active members of the TTC Pension Plan are eligible to vote on these enhancements.
- For members who have retired on or after Jan. 1, 2023, your pensionable earnings in 2022 will now be included in the base period for calculating your pension benefits. The base-period formula will now be the average of your best four years of pensionable earnings up to Dec. 31, 2022.
- Together with this formula update, the survivor benefit date has been moved to Jan. 1, 2023. This means that for married members, the 60% survivorship option will have no cost for all pension service prior to Jan. 1, 2023.
- Also, members who retired before Jan. 1, 2023, will receive an ad hoc cost-of-living increase (COLA) of 5.35%. If you retired in 2022, your COLA will be prorated for the number of days you were retired in 2022.
On an annual basis, the TTC Pension Plan Board of Directors assesses affordability of benefit improvements and provides them at its discretion.
There is no contractual obligation to provide benefit improvements, and future enhancements are not guaranteed.
Additional bylaw amendments
Aside from amendments required as a result of Board-approved formula improvements, TTC Pension Plan administration and the Board of Directors have undertaken a restatement of TTC Pension Plan Bylaws to incorporate housekeeping and regulatory updates. The last substantive update was done in 2012.
Housekeeping changes include:
- Rephrasing of Bylaw 1, Establishment of the Society
- Addition of new definitions to the following terms to enhance clarity: Administrator, Participating Employer, Protected Leave, and Statutory Leave
- Revised definitions of Interruption of Service and Shortened Life Expectancy
- Removal of requirements for Board approval for members’ Shortened Life Expectancy application and for appointment of Pension Fund Society auditors
Regulatory changes include:
- Removal of “emergency leave” in the Interruption of Service definition and in Bylaw references related to credited service, repurchase of service, and pensionable earnings – to align with current provisions in the Employment Standards Act (Ontario)
- Removal of references to “family medical leave” and replacement with new Statutory Leave definition that will incorporate any leave provided for under the Employment Standards Act (Ontario)