Photo: excerpt of one of the letters sent out by Canadian Commercial Workers Industry Pension Plan to a retired Fairvern employee.
Former and current Fairvern Nursing Home employees are upset over letters they received informing them that their pensions would be reduced effective June 30, 2022, the official date the District of Muskoka took over the operation of the home.
Some reached out to Huntsville Doppler via email while others have expressed their disappointment in Huntsville Doppler’s Speak UP, Huntsville! section, noting that they had repeatedly asked current and former Fairvern administrators whether their pensions would be impacted by the change in ownership and said they were assured they would not be affected.
One of the letters from the Canadian Commercial Workers Industry Pension Plan (CCWIPP), which was shared with Huntsville Doppler by an individual who retired from Fairvern while it was still managed by a volunteer board, states that her pension plan would be reduced by 10 per cent because the nursing home had ceased participation in CCWIPP, which constituted a withdrawal event. The letter states that as per a provision in the plan, a withdrawal event will result in a reduction of accrued benefits for both active and former members.
Those who have written openly about their disappointment are calling the pension reductions disgraceful and shocking.
Huntsville Doppler requested an interview with District commissioner of health services, Norm Barrette, but was asked to pose the questions in writing. Below is a written Q&A exchange with the commissioner on the subject:
Q: Fairvern pensions are changing because of the move to District ownership – why is that happening?
A: Fairvern previously operated as a not-for-profit organization and its Board of Directors requested that the District assume ownership and operation of the home. There were many reasons why this transition was determined to be the best option for the future of Fairvern, many of which are linked to the District’s capacity as a municipality to support the expanded redevelopment of Fairvern into a 160-bed long-term care home. If the transition to the District did not occur, it is highly likely that the pre-existing organization would have ceased operation and the home would have closed.
Prior to the transition to the District, Fairvern staff participated in one of two pension plans: The Nursing Homes and Related Industries Pension Plan (NHRIPP) and the Canadian Commercial Workers Industry Pension Plan (CCWIPP). Both of these plans are multi-employer pension plans (MEPPs), meaning the plans cover multiple organizations that are not affiliated with each other.
Ontario legislation governing municipalities like the District requires that all employee pensions be through the Ontario Municipal Employees Retirement System (OMERS). Fairvern staff became District employees on June 30, 2022, and were enrolled in or offered enrolment in the OMERS municipal pension plan in accordance with the OMERS eligibility rules.
Depending on the previous pension plan and its rules, penalties may be applied by the MEPP when an employer stops participating in a pension plan.
Q: What has the District done to address this pension issue?
A: The District has no control or authority over and does not administer any of the pension plans involved.
However, earlier this year, the District initiated discussions with both the CCWIPP and the NHRIPP about the Fairvern transfer to the District.
In April 2022, we learned that CCWIPP sent notices to the affected employees about how their pensions will be treated and that reductions will be applied to their pension.
The District did not receive any response from either pension plan before the CCWIPP provided notices to employees. Fairvern employees raised their concerns to the District after they received this notice from CCWIPP. Soon after, the District held staff meetings and shared messages about the position taken by the CCWIPP.
The District is working diligently to try to find ways to minimize the impacts on Fairvern staff pensions through discussions with multiple stakeholders, including the pension plans and the pension regulator.
Long-term, OMERS offers a more generous retirement benefit than the CCWIPP and NHRIPP, and it is anticipated that many Fairvern staff will receive a pension that is better than what they would have received had they remained in the CCWIPP or NHRIPP, even with the reduction by CCWIPP.
Q: How have staff been updated about this issue and other transition impacts?
A: The District has been speaking with staff since late March through various communication and engagement activities, including Staff Information Sessions (virtual and online), an online staff portal, FAQs, a staff advisory group, and handouts.
the District understands that decisions of the CCWIPP and NHRIPP are a concern for Fairvern staff, and we will continue to provide updates and share any new information as soon as it is available.
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I wonder what kind of pension the bureaucrats at the District have ?
My thanks to the Doppler for reporting on this. I think that there is more investigative journalism needed here based on the other comments from Fairvern staff. At the least, the decision-makers involved should answer the questions raised here as well as the following: i) How many individuals in total have seen a reduction in their pensions or will (estimate)? ii) What is the projected total loss in income on an annual basis for those affected? iii) What plans did the decision-makers have in place in the event that there was going to be a loss as a result of the change in pension-plan providers and penalties applied by MEPP? iv) What are the courses of action being considered NOW by the District?
Shame on the District if this is where it ends.
If “earlier this year” as stated District was in discussion with CCWIPP, then why would I along with others not have heard about it! I am no longer an employee of Fairvern or District (retired) but I am a CCWIPP member.
I Did Not receive a notice from CCWIPP in April 2022 as the District has stated here. I received No notices of discussion/ intentions/ handouts/ invitation to meetings/ phone call/ email. No communication at all from CCWIPP or District or Fairvern about my pension being effected. I received one letter Aug 20/22
from CCWIPP to inform me of Sept. reduction.
District is saying they are “working diligently” to “minimize impact” on staff pensions. I am not staff of District. The 10% reduction of my pension has already come off my Sept/22 payment along with Many others. District has not reached out to me in any form and OMERS does not help someone already retired.
This response does not adequately address this very serious problem. There are no real answers here for me to explain how local people who have dedicated or are dedicating years of their lives to Fairvern were not part of discussion about reducing their pensions. It is not adequate to say that there were letters sent to me when they were Not sent or to say there were meetings I could have gone to when there were No invitations to me to go to meetings!
Well at the end of the day the Withdrawl Event has happened and the retired FAIRVERN employees have lost 10%. Employees still working at FAIRVERN have lost more then the 10%. Yes the District has a pension plan in place but it really leaves current employees in a pension limbo. We believed Norm Barrette from the District and John Wright Jr from the FAIRVERN board when they told staff there would be no pension loss! . Shame on them for misleading us with false information. Perhaps the District and FAIRVERN should have done some investigation into how the District taking over FAIRVERN was going to impact the retired and current staff. The District has the 160 LTC beds, FAIRVERN staff and all that FAIRVERN has for assets. Paddle money raised for 7 years and donated property. Hmmm.