CANADA - The Association of Municipalities of Ontario (AMO) said the passage of controversial Bill 206, aimed at providing at supplemental pension benefits for OMERS members, would impose extra costs on municipal budgets and tax payers.
AMO said the Bill’s 2.33% accrual rate benefit alone would cost property tax payers C$50m a year by the time it had worked its way into collective agreements across the Province.
AMO president Roger Anderson said: “Municipal property tax payers will be on the hook for the cost of the supplemental pension benefits that Bill 206 makes available. Pension benefits aren’t free and the public knows that. The Province has created a ticking download that will cost Ontario property tax payers hundreds of millions of dollars over time.”
Anderson also refuted suggestions that fire, police and paramedics would put existing salaries or other benefits on the bargaining table to make Bill 206 ‘revenue neutral’ as “ridiculous.”
“The Province will accept the political credit for providing supplemental benefits, but municipalities will endure their costs and administrative headaches,” said Anderson.
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