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                From Fred LeBlanc - President, OPFFA                                                                                   

Ontario Professional Fire Fighters Association

An Association Run for and by the Membership            

July 4, 2008 

OMERS Increases Contribution Rate

for NRA 60 Members in 2009

The following overview will provide some background with respect to the OMERS Sponsors Corporation July 3^rd decision to adjust the contribution rates beginning January 1, 2009.

The OMERS Sponsors Corporation (SC) is responsible for setting contribution rates and filing the valuation. The SC had been studying the 2007 valuation which disclosed the plan was relatively healthy with an 8.7% rate of return in 2007 resulting in a small surplus of $82 million.  As well the SC was reviewing the results of two other studies. The first study was done to ensure that NRA 60 rates are proportionally correct to those paid by NRA 65 members. The second study is the projection valuation study which looks at the plan in the long term. It makes forecasts of 30 years but realistically projections outside of five years have little meaning.

The projection value study was positive. The actuaries ran different models based on optimistic and pessimistic returns. They also factor in other possible changes in the assumptions. The news was good in the sense that if all things stay constant then the plan should remain in a small surplus position. So there was no need to alter contribution rates based on the health of the plan.

However changes were needed based on the NRA 60/65 contribution rate study (CS). The last CS was done in 2002 and resulted in a rate adjustment in 2004. The study is done to ensure that both groups are paying their appropriate share.

In a nutshell, the CS concluded that there has been an underlying shift over the last 5 years in cost versus contribution rates between the NRA 60 and NRA 65 groups and between the below and the above YMPE rates.  The main reason behind this according to the actuary's report is the fact that NRA 60 members received greater salary increases than NRA 65 members. The cost centered predominately on the recently negotiated 3/6/9 recognition pay for NRA 60 members. 

It is important to note that the rate adjustment is applied in a manner that assumes all NRA 60 members are in receipt of recognition pay. Given the overwhelming majority of members in both police and fire sectors receiving recognition pay it was not feasible to split the rates into even more categories. 

The SC met on Thursday, July 3^rd and voted to realign the NRA 60/65 rates to ensure that both groups are paying a proportionate amount. The following chart shows the changes that will come into effect on January 1, 2009.

The percentages shown are those paid by members. The employer would pay a matching share.

Note – the CPP earnings limit for 2008 is set at $44,900.  Therefore members pay the percentage noted above for their first $44,900 then the higher percentage on the remaining amount depending on their salary.

The combined rate for employers and employees, NRA 60 and NRA 65 is currently 15% (this is the aggregate total of the four individual rates). That rate will remain unchanged. Despite earlier projections that the current NRA 60 rate (10.7%) needed to be adjusted to 13.4% the SC decided to use the surplus to offset the increase in normal costs so the increase to NRA 60 rates while still substantial at 12.8% is not as large as was first projected. 

Figures provided by OMERS show the following impact:

Normal Retirement Age 60, based on $75K earnings

2008 contributions per pay: $260.30

2009 contributions per pay: $281.16

Difference (increase):                  $20.86  

2008 contributions (annual):         $6,767.80

2009 contributions (annual):         $7,310.10

Difference (increase):                  $542.30

Overall, this represents an 8% increase. Member contributions are matched by the employer. Remember that the contributions members make are deducted from their taxable income and this may lessen the impact of the rate increase.

NRA 65 members will see a slight decrease in their overall contribution rate as a result of these adjustments which better reflects their required rate.

The OPFFA have never been opposed to paying for the true cost of our benefits and these types of studies are essential to ensure that OMERS treats all plan members fairly.  The Sponsors Corporation had both the plan valuation and contribution rate study verified by an independent actuary. 

The decision to adjust the contribution rates for January 1, 2009 was unanimously supported by the members of the Sponsors Corporation. 

For more information please see OMERS communiqué and FAQ document at: www.omers.com under OMERS Updates.

 Respectfully,

 Fred LeBlanc,

OPFFA President and OMERS SC Representative

************************************************************************************

While you may not know this Fire Lieutenant, a medical Line of Duty Death from Boston FD who passed away on Thursday, at least please take time to read DON'T BE ME...below.

It is with regret that we report the Line of Duty Death of Lieutenant Robert T. Kilduff, Sr. who was the Vice President of IAFF Local 718 Boston, and the Legislative Representative of the Professional Fire Fighters of Massachusetts. Lt. Kilduff passed away on Thursday, March 13, 2008 from occupational cancer.

Funeral information is here:  http://www.bostonfirelocal718.org .

The following are excerpts from a letter from the late Lieutenant Bob Kilduff. The entire letter is on the Boston local 718 website.

DON'T BE ME

My name is Bob Kilduff. I have been a firefighter for 34 years. Were it not for some help from above, marvelous medical people and dumb luck I would well be on my way to an early death due to occupational cancer. I am telling my story in the hope that another brother or sister Firefighter will not have to share my experience.
 
Like many of you reading this, I only went to the doctor when hurt. You know the drill: burns, cuts, smoke inhalation and the many orthopedic injuries that come part and parcel with our job. For reasons unknown the thoughts of retirement age prompted me in May of 2003 to get my first physical exam in 30 years. I felt the best I had in years and the test results bore this out. All was well. The doc however advised that I have a colonoscopy due to my age. Not really thrilled, I acquiesced. The procedure was a piece of cake; however, the test revealed a large tumor in my colon which needed to be addressed. Twenty days later a section of my colon was removed. I had to undergo a 6 month chemotherapy program which could have been avoided with early detection. It now appears that my cancer is in remission and the doctors predict these procedures will help save my life.
 
The issue here is why go to the doctor and learn you're very sick when you can go to the doctor and keep from getting very sick. I have learned the hard way that you must act prudently if you want to see your grandkids grow, have a chance to retire, golf, fish, hunt, go to the track or whatever. If you don't have regular medical checkups your odds of enjoying a longer than normal life are greatly diminished. Early detection of cancer is paramount in successful treatment. This will allow you to do what you want to do and not what your doctor will allow you to do.
 
In 1990 a cancer presumption law was passed by the Legislature in Massachusetts. The reason it was signed into law was that it has been shown that firefighters have a serious problem with cancer. Numerous studies have pointed to the fact that there are over a dozen cancers that attack firefighters more often than the general population. Our exposure to the products of combustion and the resultant carcinogens are the reason and we must be more proactive in protecting ourselves through cancer screening. The Boston Fire Department's Medical Examiner Mike Hamrock deals with cancer and firefighters daily. From his observations, firefighter cancer screening should take place if there is a family history of cancer. For example, colon screening normally scheduled for a fifty year old should take place at age forty due to our higher incidence of the disease. Firefighter deaths due to occupational diseases are far more common than the number of line of duty deaths caused by other means and we must take them seriously.
 
I ask that you take a few minutes to examine your efforts to help yourself stay healthy. Think for a moment about my experiences over the last ten months and if necessary take the action necessary to help you avoid my fate. Remember, DON'T BE ME. 

God Bless and stay safe-BK.

Rest In Peace, Lieutenant Kildref
from FirefighterCloseCalls.com
 

Legislative Bill for Presumptive Cancers [May 9/07]