May 25, 2018
We are pleased to report that, as of May 15, 2018, approximately 80% of eligible Plan members or their surviving spouses voted in favour of the Proposal, and as such, the next steps required for the implementation of the Proposal can proceed. The first step, the execution of a formal Surplus Sharing Agreement (the “SSA”) to document the Proposal, has been completed, as required under the terms of the Proposal.
The next significant step required to implement the SSA is the merger of the Plan with the Ontario Municipal Employees’ Retirement System (“OMERS”). Later this summer, the City will be sending you a package containing important information regarding the proposed merger. You should review the package, but no further action on your part will be necessary if you agree with the proposed merger. It is important to note that the merger is subject to the approval of the Superintendent of Financial Services of Ontario (the “Superintendent”), and if the merger does not proceed, no surplus can be distributed from the Plan in accordance with the terms of the SSA.
If the merger proceeds, following the completion of the merger, the City will proceed to wind up the Plan and file an application with the Superintendent for approval of the SSA. Surplus from the Plan cannot be distributed in accordance with the terms of the SSA unless and until the Superintendent has approved the surplus withdrawal application. At this time, we do not expect surplus from the Plan to be distributed before the end of 2019, at the earliest.