The president of CUPE Ontario thinks the lawsuit launched by Toronto Hydro against OMERS that seeks to overturn the decision to limit a newly in force contribution cap is an “outrageous attack on the pensions of hard-working Ontarians.

“That Toronto Hydro executives are using the hard-earned dollars Torontonians pay for electricity to sue the OMERS pension plan because they want their ludicrous and exclusive corporate bonuses to count towards their pensions is outrageous,” said Fred Hahn, president of CUPE Ontario.

CUPE Ontario represents the largest single group of workers in the OMERS Pension Plan. The average pension for a CUPE retiree from OMERS is approximately $14,000 a year.

“The hard-working school secretaries, hydro linepersons, paramedics and child care workers who are members of the OMERS Pension Plan deserve retirement security and shouldn’t have to foot the bill for CEO bonuses,” said Hahn.

“There isn’t a school caretaker in the province who could imagine making the $549,910 that Toronto Hydro CEO Anthony Haines earned in salary and bonuses in 2009,” said Hahn. “They don’t want the hard-earned money they contribute to OMERS paying out pensions based on executives’ massive corporate bonuses.”

He added, “This is another example of high paid CEO’s who feel entitled to ludicrous bonuses and do not care if including them in pensionable income adversely affects hard-working Ontarians. It was this mindset that caused the economic crisis in the first place.”

Related links:
Toronto Hydro sues OMERS over contribution cap: updated

Copyright © 2017 Transcontinental Media G.P. Originally published on benefitscanada.com
See all comments Recent Comments

Andrew Block:

I think OMERS has it right. I tire of seeing obscene compensation packages for senior executives who are in figurehead caretaker-type positions surrounded by layers of staff who do all the work. If an executive truely shows innovative brilliance that affects the longterm viability of an organization, then and only then, should they see large bonuses. Those of us who have worked in big organizations, would probably agree from past experience that brilliance does not shine brightly, if at all, from most top executive office suites.

Thursday, March 03 at 2:08 pm | Reply

Diane Able:

Freedom of speech is great but there should be a law to penalize people for lying and distorting the truth. First, CUPE should take some time to understand how the OMERS pension works. Employees actually contribute to the plan and that includes EXECUTIVES. Second, employees are not contributing to the executive plan. I’m not a senior executive and I agree not all executives are brilliant but then again not all employees add value. Let’s be honest, is CUPE upset because they are creating a highly motivated and high performing culture? It’s disturbing that CUPE posts inaccurate and incomplete information to create hostility within the workplace. Oh, and during contract negotiations, let’s see how CUPE would respond if they were told their Pension plan is changing!!! So CUPE, if OMERS can arbitrarily change the pension plan for Executives who do you think they will come after next? Since you can’t get your facts straight why don’t I spell it out for you – EVERYONE ELSE!!!

Friday, March 04 at 5:39 am | Reply

Mike Murphy:

According to the information included in the update at the bottom of the article, the bonus that can be included as pensionable is equal to 50% of the base salary Executives with Hydro recieve. OMERS voted by 2/3 majority to make this change because it would cost the plan to much otherwise, and all members would have to subsidize the Executives pension. It’s common when pension plans are designed and set up to include provisions for normal salary increases of a percentage per year based on workplace average increases. It’s impossible for a pension plan to be able to determine how bonuses will increase pre year, especially given how much they seemed to increase in the past number of years. To those executives that seem put out by this cap on how much of a bonus will be considered pensionable I would like to ask. Is Overtime pay used to calculate pensions for the workers? If not then why should a pension plan risk insolvency based on extraordinary bonuses being paid to a few executives. What’s next we include stock options, car, home entertainment allowances granted to Executives as pensionable salary too??? Give your heads a shake.

Wednesday, April 06 at 10:44 am | Reply

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