Executive summary

The Provincial Judges Pension Board (PJPB, Board or PJPBoard) is the trust agency responsible for the administration of the Provincial Judges Pension Plan (PJPP or Plan) and the investment of its Registered Pension Plan Trust Fund (RPP) and Retirement Compensation Arrangement Trust Fund (RCA). Effective January 1, 2020 the PJPP was amended and the Board’s role and responsibilities were transformed by an expanded mandate and a more complex fund structure. At the same time, the Board’s composition changed, increasing the complement from 3 to 5 members including 1 new member appointed as the Association of Ontario Judges (AOJ) representative.

Throughout 2020, the PJPB spent a great deal of time and effort establishing the governance structure and processes to begin delivering on its new legislated mandate. This included taking steps to modify and expand Ontario Pension Board’s (OPB) traditional role from a service provider to an added-value pension plan operations manager and advisor. Since the Board is also responsible for the assets held in the RPP and the RCA, it has been focused on defining its long-term investment strategies. While a short-term investment strategy was implemented in March 2020, implementation of the long-term investment strategy will begin by the end of the first quarter of 2021.

The operation of the Plan continues to stabilize as PJPB develops its oversight standards and capabilities. The 2020/2021 fiscal year was a challenging transition period complicated by the Covid-19 pandemic. As the Board enters its second year of operation under the new Plan design and governance model, the Board expects the workload to continue to be heavy but more manageable as OPB takes on a more proactive role as management.

From 2021 to 2024 the Board will continue to deliver on its responsibilities as Plan administrator and fund trustee by improving/enhancing operations management as well as governance processes to satisfy its obligations as a fiduciary and a provincial agency.

Key deliverables for 2021/2022 include:

  • Developing and implementing the first Annual Pension Statement
  • Developing a Risk Management Framework
  • Defining the Boards new communication Policy

Mandate

The Provincial Judges Pension Board was first established in 1992 to administer pensions and survivor allowances for provincial judges, their surviving spouses, and eligible children. At the time the Board was composed of three members and constituted as a Trust Agency operating at arm’s length from the Sponsor.

At the beginning of 2020, PJPP Funding Redesign came into effect, expanding the Board’s mandate and increasing its size. Funding redesign is a major change to the Plan’s funding framework affecting the applicable legislation, how the sponsor and members make contributions to the plan, where the funds are deposited and how pensions are paid. While the Board remains a trust agency operating at arm’s length from the Plan Sponsor, it is now composed of 5 appointed members and its responsibility for PJPP oversight has grown to include: active members; plan funding; communications; compliance; and asset management.

The amended mandate for the reconstituted Board is taken from the applicable trusts and Regulation 290/2013 as follows:

  1. Execute the Board’s powers, duties and responsibilities as Trustee under the Registered Penson Plan Trust Agreement and the Retirement Compensation Arrangement Trust Agreement.
  2. Be the Administrator of the Registered Pension Plan for Provincial Judges. Accepting and executing the role and responsibilities of a Registered Pension Plan Administrator for the purposes of the Federal Tax Act; and
  3. Oversee the administration of the PJPP entitlements and administrative functions related to active members, pensioners, and survivors including, interpreting the plan provisions, communicating with the Plan’s Beneficiaries, and managing of the investment of RPP and RCA trusts.

In carrying out the duties under its mandate, the Board has a fiduciary obligation to act in the best interests of the judges and other Plan beneficiaries.

Strategic directions

Since the expansion of its mandate and reconstitution, PJPB has focused on establishing necessary infrastructure to support Board oversight and plan operations. The Plan became fully operational on January 1, 2020 and PJPB began overseeing the delivery of pension administration services by Ontario Pension Board. Early in 2020 the Board began work on a series of implementation priorities for the 2020/2021 plan year that included engaging the Investment Management Corporation of Ontario (IMCO) to manage RPP assets.

In the 2021/2022 plan year, four strategies will form the foundation of the Board’s business plan. PJPB will be focused on enhancing the pension governance system, strengthening the Plan’s viability, delivering excellent member service, and building effective stakeholder relations. The PJPB’s four strategic priorities are as follows:

Implement management of redesigned plan and enhanced governance

The Board’s priority in 2020/2021 was on consolidating responsibility for plan management with OPB and on establishing essential governance infrastructure.PJPB will continue giving effect to the new operational management function and building and improving governance infrastructure to fulfill the Board’s expanded mandate obligations. This will be accomplished through ongoing efforts to document Board policy and Plan administration procedures including delegations of Board authority. Efforts to enhance governance will also include review of Board self-assessment approach and instituting Board education programs (e.g. fiduciary training).

Strengthen the Plan’s Long-Term Viability (security of the promise)

PJPB is now responsible for service to active members (sitting Judges) as well as pensioners and for oversight of investment plan assets for the RPP and funding and investment plan for the RCA. The Board will adopt, with the engagement and recommendations of professional expert advisors Aon and IMCO, investment strategies that aim to maximize risk-adjusted economic benefits and keep the Plan affordable for members and the Sponsor. To achieve these goals the Board will monitor the Plan’s funding position and make appropriate recommendations to the Sponsor as needed. In addition, quarterly investment performance reporting will be included in the Board meeting agendas for review and to take any appropriate action.

Deliver Excellent Cost-Effective Member Service

The Board’s responsibilities now include pension service offerings to an additional 300 active members. OPB will start to provide expanded, accountable pension operations management under an updated and revised Service Level Agreement (SLA) that is aligned with the Board’s new Mandate. PJPB is committed to ensuring active members understand their pension entitlements and rights and responsibilities under the PJPP so they can make informed decisions about their pension (e.g. an Annual Pension Statement). The Board will also seek to continue to improve existing services to pensioners while maintaining efficient and accurate pension payroll operations. The PJPP is a relatively small but complex pension plan with limited opportunity to achieve economies of scale regarding operational efficiencies. Going forward the Board with the assistance of OPB, IMCO and Treasury Board Secretariat (TBS), will need to balance costs and anticipated benefits to ensure members receive “value for money”.

Foster effective stakeholder relations

Each of the PJPP’s stakeholders bring important perspectives to any discussion concerning judicial pensions. The AOJ provides insight on member needs and expectations and their presence on the Board is welcome. Administration of the redesigned plan requires regular and ongoing collaboration among all stakeholders to ensure successful delivery of member services and effective plan and fund management. A complete list of plan stakeholders appears in Appendix A. The Board will continue to build its reputation as a trusted partner through regular communication and consultation with the various stakeholders.

Overview of current and future programs and activities

Plan funding redesign added new investment oversight and administrative responsibilities relating to the management of the RPP and RCA trust accounts including, investment of assets, tax administration, member contribution records and associated financial reporting. All preexisting responsibilities and supporting processes under the Plan remain and will not require any significant modifications to ensure stable plan operations.

Major program activities for 2021 include:

Pension calculator automation

Pension plan administrators need capability to quickly deliver multiple pension calculations for individuals and groups of members, both on demand and in planned project settings. Producing pension calculations efficiently can be challenging for a plan administrator if they do not have systems to link member data with their calculator and then the facility to import the results into a communication product. To meet the demands of its expanded mandate, the PJPB needs to automate the existing pension calculator, created as part of redesign implementation to provide individual pension calculations. In addition to supporting a range of valuable member service offerings, automation of the pension calculator will: 1) yield more efficient production of Annual Pension Statements by reducing project resource requirements; 2) help mitigate data entry errors by eliminating need to transpose information; and 3) set up future infrastructure for ongoing production of Annual Pension Statements and other estimate services.

Automation of the existing pension calculator will be completed in time to support production and delivery of the PJPP’s first Annual Pension Statement.

Annual pension statement

Annual Pension Statements (APS) are a cornerstone of an effective member communication program. The statements are valued by members because they offer transparency with respect to the information a plan administrator collects and uses to deliver pension services, and information to help them understand and optimize the value they receive from the Plan.

It is worth noting that APS’s are a long‐standing requirement for pension plans registered in the province of Ontario. Although the PJPP is exempt fom these regulatory requirements, the Board has been an advocate of voluntarily implementing APS’s for sitting provincial judges. The Board is committed to consultation with the AOJ to develop APS content that is useful and valued by the membership.

Maintaining security around the delivery of personal information is a priority for the PJPB and will be a key consideration as the project progresses.

Transition to New Strategic Asset Allocation

The Investment Management Agreement (IMA) between PJPB and IMCO includes a schedule of permitted investments and restrictions to be in place until a Statement of Investment Policies and Procedures (SIP&P) is approved.

The investment objective of the short-term investment strategy is to provide a highly liquid portfolio of money market securities comprising predominantly of Canadian Government T-Bills and high-quality short-term securities. The primary focus is on capital preservation and liquidity given the increased level of market volatility and uncertainty due to the ongoing Covid-19 pandemic economic impact.

Final adoption of the Strategic Asset Allocation (SAA) and SIP&P will enable the Board to begin shifting fund assets from the existing investment portfolio toward its selected long-term optimal investment portfolio. The Board will need to consider the implementation timeframe required to move to the new asset mix based on ongoing advice and consultation with its expert advisors (AON and IMCO).

Implement OPB management roles and responsibilities

A key issue for the Board during the implementation of Plan redesign was the management structure it required to properly carry out its responsibilities as trustee and plan administrator. Rather than adopting the “distributive” management model that was previously in place and would require its members to perform traditional management functions, the PJPBoard favoured consolidating responsibility for plan operations management with OPB. The new SLA between PJPB, OPB and TBS reflects this expanded role. Fees for the new services have substantially increased due to the nature of the responsibilities but continue to be provided on a cost recovery basis. In addition to day-to-day responsibility for managing plan operations, programs and activities that require implementation include:

  • Establishing measures that will allow the Board to assess OPB’s performance;
  • Ongoing policy and procedure development that will document delegations of Board authority and define new administrative processes for OPB;
  • Delivery of regular strategic and priority updates including risk management;
  • Establishing PJPP Communication Policy;
  • Agencies and Appointments Directive (AAD) compliant procurement of required service providers (e.g. actuarial and legal) for the Board;
  • Settling PJPB’s overall direction on internal audit (2021)
  • Ongoing development of governance and operations structures and processes to support to support PJPB oversight of the redesigned Plan and its funds.
  • Ongoing consultation on emerging plan issues and projects.

Review Board self-assessment program

Board self-assessment is considered best practice and the PJPB has engaged in a self-assessment process in prior years. The current program may not be appropriate for the current Board's expanded mandate and the Board will consider what, if any, adjustments are required for the reconstituted Board.

Revise board mission and values statement

The mandate of the plan has changed, and the existing mission and values statements are outdated. A restatement of the mission and values will inform the Board’s Communication policy and will be reflected in the 2022 business plan.

Update performance measurements for service providers according to emerging requirements

The PJPBoard needs to consider the effectiveness of current KPI’s in the redesigned plan setting.

Complete annual actuarial valuation

The PJPBoard is responsible for completing future valuations of the RPP and RCA only. An initial actuarial valuation was prepared for the Provincial Judges Registered Pension Plan as at January 1, 2020. Under the terms of the Plan, valuations must be completed annually so the next valuation should be prepared as at January 1, 2021. The next valuation for the purpose of funding requirements should be filed with CRA no later than December 31, 2023.

Annual review of statement of investment policies and procedures

The PJPB SIP&P document was established voluntarily so the frequency of Board review is not mandated. Plans governed by provincial pension legislation must be reviewed annually as a minimum. The Board will need to clarify its approach.

Resource needed to meet goals and objectives

The Board expects to meet its objectives through the ongoing application and operation of its revamped Service Level Agreement (SLA) with the OPB, particularly OPB’s assumption of the Plan Management function.

For objectives that are not part of the fixed fee services, or where an unanticipated expense occurs, the Board will require a business case and may need to engage TBS for specific assistance and additional resources. The Board expects OPB to deliver two key projects in 2021: Pension Calculator Automation and the Annual Pension Statement. Project cost estimates appear in the annual operating budget and the fees are shared equally across each Fund (i.e. RPP, RCA and Supplementary). These fees are expected to cover all aspects of the project including OPB staff resources.

To meet its expanded goals and objectives, the Board will require the following resources:

  • OPB Facilities, Management, Administrative and Financial Services (OPB fixed fee services).
  • OPB Project Services:
    • Project Funding (e.g. APS development and production).
    • Project management.
    • Business analysis.
    • Subject Matter Expertise.
  • IMCO investment management and performance management.
  • Plan Actuary.
  • PJPB Independent Legal Counsel.
  • Insurance

Note: Related financial information appears in the Table found in Section J - Financial Budget.

Risk identification, assessment and mitigation strategies

OPB manages the development, ongoing monitoring and reporting of PJPB’s enterprise risk framework and has begun work to develop a revised enterprise risk inventory. OPB’s risk management unit continues to work closely with the Board to develop a framework that contemplates the identification of key and significant risks to PJPB’s mandate, their assessment, key controls or mitigations in place, future action plans and reporting.

While work is continuing, risk mitigations and action plans have been identified and will be monitored and reported at quarterly Board meetings. A review of reporting frequency will occur in 2022 to ensure quarterly reporting is appropriate.

The Board has defined its risks, identified mitigations and action plans. Top risks in terms of severity for the Board are:

Environmental scan

The environmental scan below provides a description of the business environment in which the Board is operating.  It identifies and briefly discusses the considerations used to inform the risk assessment reflected in the Table under Section F “Risk Identification, Assessment and Mitigation Strategies”.

Covid-19 pandemic

PJPB contracts its pension administration services through the SLA with OPB and its investment management services through the IMA with IMCO. Both organizations have shown they have strong business continuity plans in place, ensuring PJPB did not experience any disruption of business since the onset of the Covid-19 pandemic. Governments have cautioned Canadians that the effects of the Covid-19 pandemic are expected to continue well into 2021. PJPB will require on-going assurance from OPB and IMCO concerning the effectiveness of their business continuity plans.

Expanded board mandate

Funding redesign expanded the PJPB mandate to include oversight of active members; plan funding; communications; compliance; and investment asset management. During 2020/2021 the PJPB was focused on establishing foundational governance structures and processes relating to these new obligations. The next phase of implementation will need to focus on establishing the remaining processes to support more efficient Board oversight through effective delegation to OPB and IMCO.

IT opportunity and cost

Over the years the relatively small number of Plan members has contributed to limited investment in complex and expensive IT solutions and a heavy reliance on manual processes for pension administration services. The redesigned Plan will require a more urgent timeline to address the lack of automation. While automation is expected to yield improvements in risk mitigation, quality, cost effectiveness and governance there will be a cost associated with establishing access to and modifying existing OPB systems. Any additional cost generated by these changes will require the Sponsor’s consent and approval.

Sponsor’s fiscal constraints

Under Plan redesign the province is now making contributions of almost $40 million annually to the RPP as it copes with Covid-19 pandemic and the related economic impacts. Sponsor fiscal constraints would not affect contributions to the Plan but may create challenges for funding special projects in the future

Stakeholder involvement

Membership of the Plan is composed of individuals who are considered legally and financially sophisticated.  In the past, Board-related pension issues were typically raised by individuals and resolved in that context. Over the past several years the AOJ has signaled a greater interest in the PJPP and its governance framework. As a stakeholder, the AOJ represents sitting and retired Judges who are also members of the Plan. The Board values the AOJ as a key stakeholder and welcomed the appointment of an AOJ representative to serve on the Board. This development should contribute to opportunities for dialogue and improve transparency respecting the Plan’s operations.

On-Going Litigation

Implementation of funding redesign is expected to resolve long standing litigation that began in December 2013. That Application has since been adjourned and the original Standstill Agreement, which was established to maintain administration of the Plan according to the old provisions, was periodically extended over the years. The Board continues to monitor its legal costs associated with the delay and ongoing compliance with the Standstill Agreement.

Provincial Judges Remuneration Commission

Compensation for Judges is determined through a commission process prescribed within the Framework Agreement. The 9th and 10th Judicial Remuneration Commissions have made their recommendations and they include changes to the Plan’s design. The next Judicial Remuneration Commission will consider periods on and after April 1, 2022.

Agency Accountability Requirements

In an effort to strengthen accountability and clarify roles and responsibilities in the Broader Public Sector the government has been providing more frequent guidance to its ABCs.  Many organizations, including this Board, have found the directives helpful in more precisely defining their obligations and government’s expectations.  In spite of this accountability relationship with the government, the Board as Trustee and fiduciary of the PJPP consistently and firmly asserts its independence in all actions and decisions affecting interests of the Plan’s beneficiaries as required by law.

Sensitivity of Judges Data

Personal information belonging to sitting and retired judges is extremely sensitive and if accidentally disclosed could have a serious effect on the privacy and personal safety of the individual judge.  The Board recognizes the special circumstances that apply to judges and requires that OPB ensures personal information is adequately secured at all times and especially prior to transmission by mail or electronic means.  In addition, the Board relies on OPB’s well-established privacy and disaster recovery policies that reduce the risks associated with a major event.

Staffing, human resources, and compensation strategy

The Board has no staff.  There is, as a result, no human resources impact, and no need for a compensation strategy or benchmarking against other public sector bodies.

Outcome and output-based performance measures and targets

PJPB is committed to performance measurement and has established several output measures that are tracked and reported through the Board’s quarterly meetings. Telephone call performance data, exception reporting on case processing as well as compliance status are examples of output measures the Board has implemented over the years to help it assess the delivery of services to beneficiaries of the Plan.

Plan redesign introduced additional responsibilities that require PJPB to consider whether its existing key performance indicators are sufficient and whether it should adopt more sophisticated metrics at this time. The Board is taking steps to ensure it is aligned with the Province’s commitment to evidence‐based reporting through output and outcome‐based reporting. Performance Reporting is identified an on-going priority for the Board in each of the next 3 years. This is an excellent opportunity to improve both: service delivery for clients and the Board’s ability to oversee the Plan’s pension and investment operations.

Financial budget

The 2021/2022 fiscal year is the second year of PJPB operation but first full year of operating with governance and management structures adopted by the PJPB to meet its requirements for oversight. Budget estimates were developed according to the SLA with OPB and support a fixed fee approach for Plan pension operations management. These services are delivered on a cost recovery basis and paid by the PJPB and TBS to ensure Public Service Pension Plan funds are not used to administer another plan.

The Board has committed to delivering a regular APS commencing in September 2021. The Budget estimates for projects include the APS and a related project to automate the pension calculator to permit efficient processing with minimal Client Service resources while mitigating errors associated with manual calculation.

The remaining budget items refer to expected 3rd party services required to support the Board’s governance and oversight responsibilities.

Provincial Judges Pension Plan - Annual Operating Budget (April 1, 2021 to March 31, 2022)

ItemRPP footnote 1RCAfootnote 1SUPPfootnote 2Total
OPB Administration under SLAfootnote 3

491,846

491,846

338,109

1,321,801

Insurance

38,900

38,900

38,900

116,700

Legal

40,000

40,000

40,000

120,000

Actuarial

14,000

14,000

14,000

42,000

Project Costs

349,000

349,000

349,000

1,047,000

Total

933,746

933,746

780,009

2,647,501

Provincial Judges Pension Plan - 3 Year Operating Expense Projection (April 1, 2021 to March 31, 2024)

3 Year Projection – Full Plan2021-2 (as above)2022-3 (2% increase)2023-4 (2% increase)
OPB Administration under SLA

1,321,801

1,348,237

1,375,202

Insurance

116,700

119,034

121,415

Legalfootnote 4

120,000

100,000

80,000

Actuarialfootnote 5

42,000

42,840

43,697

Project costsfootnote 6footnote 7

1.047,000

100,000

100,000

Annual operating expense

2,647,501

1,710,111

1,720,313

Realty

PJPB does not control realty outside of RPP and RCA trusts.

Information technology (IT) / electronic service delivery (ESD) plan

Under Plan funding redesign, the PJPB utilizes OPB IT resources to support plan administration. Since OPB has responsibility for significant systems, the Board has not needed to establish a PJPP specific IT plan. The Board has flagged system responsibility for further discussion in 2021 within the context of its risk framework review.

The PJPP has a small client base spread over a large geographic area and these characteristics would seem to favour some level of electronic service delivery in the future. Care must be taken when designing Electronic Service Delivery to consider how to best mitigate related privacy and security risks. Development of a digital presence and website strategy will need to be considered when the Board establishes it communication policy.

Automation may yield improvements in risk mitigation, quality, cost effectiveness and governance but there are costs associated with establishing access to and enhancing IT systems.

Any future IT projects will need to be prioritized and any additional costs generated by the solution will require Board and Sponsor approval within a business case before proceeding. A decision to adopt an e-service strategy must be supported by client need and deliver measurable value (e.g. expected and actual usage rates) once implemented.

Initiatives involving third parties

The Board does not have staff and must oversee 3rd parties retained to manage and administer the plan and its funds.  The Board delivers services through contracts with OPB, which acts as Plan management and the IMCO which serves as the Plan’s Investment Manager.

From time to time the Board requires advice on emerging legal issues affecting its obligations and the administration of the Plan. Osler, Hoskin & Harcourt LLP (Osler) was retained in 2020 to provide legal services to the reconstituted Board as it implemented plan redesign. This arrangement is expected to continue into 2021 and is funded from the PJPP. The firm of Borden Ladner Gervais LLP (“BLG”) was retained in 2014 to provide legal services to the Board relative to the litigation arising from the government’s restatement of the plan to bring it into compliance with the ITA. The engagement complies with Ministry of the Attorney General’s guidelines for engaging external counsel and TBS is responsible for payment of BLG’s invoices.

AON provides actuarial consulting services under contract to OPB. In the short term, PJPB can access these services according to the terms of OPB’s contract. These services include preparation of on-going funding valuations of the plan and more complex entitlement calculations such as determining the commuted value of individual entitlements for the purpose of family law valuations. The PJPP requires annual actuarial valuations and the next report should be prepared as at January 1, 2021.

Engagement of 3rd parties to perform work for the PJPB must be completed in compliance with the province’s Procurement Directive. 

Implementation plan

See Table at Appendix B.

Communication plan

Delivery of high-quality service offerings starts with effective communication between the Board, the Plan’s beneficiaries, and its stakeholders. The Board also believes that good communications help create an environment of trust and openness that is vital to collecting feedback on how to continually improve the member service experience. The Board will continue to focus on improving the exchange of Plan related information needed to support informed decision-making in all aspects of the Plan’s administration.

Legislative changes effective January 1, 2020 expanded the Board’s communications mandate to include active members in addition to pensioners, survivors, and personal representatives. To ensure clarity of expectations and goals and to facilitate timely delivery of communication programs, PJPB will produce its first communications policy in the 2021/2022 fiscal year. The policy will serve as a resource to help prioritize future communications initiatives and ensure delivery in a logical, well planned, and cost-effective manner.

The Board is committed to delivering its first APS by September 2021. APS’s are a valued source of pension entitlement information for plan members across Ontario. The APS provides plan members with personalized pension entitlement information encouraging responsibility for their retirement planning and financial health in retirement. The AOJ is an invaluable resource for member’s perspectives on content and the Board expects to achieve excellent results through a high level of early consultation on content requirements and the possibility of coordinating digital delivery.

The Board’s approach to communications is shaped by its limited capability for digital communication. Maintaining an independent website is not feasible at this time and while we have had some access to post some communications in the Judges Manual on the Chief Justice intranet site, the Board relies on more traditional oral and written communication platforms to reach its audiences. All communication products are developed in-house and approved, by either the Board or the Chair as appropriate, prior to distribution.

PJPB members need access to knowledgeable staff that can provide timely, personalized communication. The Board plays an active role in the development of administrative policy which is used to guide development of written operational procedures by OPB, our service provider. Documenting procedures and template communications to support staff will ensure PJPP members receive consistent and accurate information each time they contact the Board. In the coming years we will continue to clarify administrative policy with respect to emerging pension issues including future Remuneration Commissions.

Transparency and openness are cornerstones of trust and are hallmarks of the Board’s approach to communications. The PJPB strives to ensure our stakeholders have access to information and an opportunity for dialogue about the Plan’s financial and operational performance.  Public communication and consultation are outside the scope of the Board’s mandate, but each member is committed to consultation with our stakeholders in advance of administration changes that may have a direct effect on them or their constituents.

The Board will continue to identify opportunities for communication that will help active members, retirees and survivors make informed decisions concerning their pensions.  The Board will also create opportunities for stakeholder feedback by consulting the Chief Justice Office and AOJ frequently on these and other pension administration services to assess member satisfaction and suggested changes.

A response to the expectations set out in the TBS agency mandate letter

The government has established government wide priorities that include:

The mandate letter also included the following PJPB specific priorities:

Appendix A - PJPP stakeholder roles summary

StakeholderRole
Government of Ontario
  • Plan Sponsor
  • Makes plan design decisions
  • Prepares plan amendments
  • Shares the cost of funding benefits with members
Provincial Judges Pension Board
  • Plan Administrator and Trustee
  • Oversees all aspects of administration of pensions and survivor allowances
  • Oversees the investments of the Plan’s assets
  • Approves all payments from the fund
  • Oversees member and pensioner communications
  • Ensures compliance with regulatory and agency requirements regulatory reporting requirements are met.
  • Adjudicates appeals
  • Pays expenses associated with running the RPP and RCA plans and Funds.

Treasury Board Secretariat
(Centre for Public Sector Labour Relations and Compensation)

  • Plan Sponsor Representative
  • Oversees implementation of pension design and policy changes
  • Oversees implementation of non-pension benefits design and policy changes (e.g. life insurance, health and dental benefits, long term income protection plan, severance)
  • Pays expenses associated with running the Supplementary plan, including expenses related to legal and actuarial services
Association of Ontario Judges
  • Represents beneficiaries of the Plan in matters affecting remuneration.
  • Nominates a representative to sit on the Board
Ontario Pension Board
  • Plan Management

Delivers secretarial services for the Provincial Judges Pension Board meetings
Monitors member and Sponsor contributions
Manages member, pensioner and survivor information
Prepares member, pensioner and survivor communications
Calculates pension entitlements
Disburses pension entitlement
Develops Plan policy and procedures
Designs and delivers Plan communications
Completes compliance, regulatory and plan financial reporting

Investment Management Corporation of Ontario

Fund Manager
Manages the Plan’s assets on behalf of the Provincial Judges Pension Board

  • Maintains Fund records
  • Supports compliance and regulatory reporting
Ministry of Government and Consumer Services,
(Ontario Shared Services, Pay and Benefits Services Division)
  • Pay and Benefits administrator
  • Completes tax reporting – Issues T4s for sitting Judges (showing pension deductions and pension adjustments)
  • Runs payroll for sitting judges
  • Handles day-to-day administration of non-pension benefits (e.g., life insurance, health and dental benefits, long term income protection plan, severance)
Ministry of Finance
(Income Security and Pension Policy Division)
  • Custodian of the Supplementary Account under the Consolidated Revenue Fund
Chief Justice’s Office
  • Administrator of the Ontario Court of Justice
  • Provides Judicial support for:
  • 1) sitting judges
  • 2) judges appointments and assignment to administrative ranks
  • 3) per diem judges
  • Produces communications for sitting judges with input from PJPB/OPB

Appendix B - implementation plan table

2021-20222022-20232023-2024
  • Adopt revised Risk Management framework
  • Procure independent legal counsel
  • Procure actuarial service provider
  • Deliver Annual Penson Statement program
  • Communication Policy review
  • Revise Board Mission and Values statement
  • Establish Objectives for Internal Audit
  • Confirm business continuity plans with IMCO and OPB
  • Approve PJPP specific privacy policy
  • Complete funding policy feasibility assessment
  • Develop and approve business continuity plan with service providers
  • Finalize Internal Audit Plan with required approvals
  • Develop IT Electronic Service Delivery Plan including proposal for website development.
  • Board training on fiduciary obligations
  • Review Board self-assessment program
  • Internal Audit

On-Going

Appendix C – Provincial Judges Pension Plan organization chart

  • Client Services – IMCO: Risk of not having a strong management structure with respect to IMCO’s role and responsibilities related to PJPP.
    • Action Plans: to mitigate this risk include negotiation of a comprehensive long-term IMA by April 2021 and establishing on-going performance measures for IMCO for ongoing evaluation
  • Client Services – OPB: Risk of ineffective oversight of OPB’s role and responsibility related to delivering superior client service regarding pension related information and annual statement to its members under the PJPP.
    • Action Plans: Documenting operational procedures and obtaining Board approval for delegations of authority.
  • Cyber security: Risk of failure of critical IT systems or a breach with catastrophic consequences.
    • Action Plans: OPB to confirm IMCO’s mitigations in place.
  • Plan funding (investment): Risk that plan funding might be adversely impacted by government funding decisions that are not aligned with the plan’s purpose and goals.
    • Action Plans: assess feasibility of adopting a long-term funding policy
    • Transparency and Accountability – The PJPB will ensure it meets its accountability commitments by maintaining regular reporting on all known obligations and allocating a standing agenda item to address new compliance matters. The Board will maintain its Board member skills matrix updating from time to time and as needed to ensure diverse and complementary Board.
    • Risk Management – The Board is establishing its new risk framework and documenting risk by category, assessing severity, and identifying mitigations and action plans. The Board will reconsider the current quarterly reporting requirements possibly shifting to biannual reporting in 2022. 
    • Data CollectionPJPBoard will consider incorporating outcome objectives into key projects for the coming year including the communication policy and Annual Pension Statement.
    • Digital Delivery and Customer Service – The Board will be examining the feasibility of digital delivery as part of the development of a new communication policy in 2021/2022. PJPB will seek updates from OPB on approaches and tools used to manage Covid-19 in the workplace. 
    • Governance and operations structures and processes that support services and measure performancePJPB has established its foundational governance structure and with the appointment of OPB to the role of operational management it is positioned to begin building performance measurement
    • Risk management including the impact of the pandemic – The Board is building its risk management capabilities and is seeking confirmation of business continuity plans as part of the required actions.
    • Governance relating to oversight of asset management by IMCOPJPB already receives quarterly updates on IMCO performance. The Board has asked for some modifications to meet its needs.
    • Client service including introduction of APS – The PJPBoard is committed to helping members understand their pension entitlements right and responsibilities through regular meaningful communication. The APS is an excellent opportunity to engage clients by combining a discussion of rights and responsibilities with personalized entitlement information.
    • Organizational Chart (Optional)
    • Organizational Chart has been developed and appears at Appendix C.
    • Update performance measurements for service providers according to emerging requirements
    • Complete Annual Actuarial Valuation
    • Annual review of Statement of Investment Policies and Procedures
    • Clarify administration through policy and procedure development
    • Board approval for delegations of authority
    • Consultation on emerging plan issues and projects.
    • Quarterly strategy and priority updates 
    • Development of governance and operations structures and processes to support redesigned Plan and its funds.
    • Plan Sponsor
      Treasury Board Secretariat
      • Plan Administrator and Trustee of RPP and RCA Funds
        Provincial Judges Pension Board
        • Administration
          OPB
        • Plan Funding
          OPB
        • Communication
          OPB
        • Compliance (Legislative, Regulatory and Agency)
          OPB
        • Asset Management (RPP and RCA Trusts)
          IMCO
      • Plan Design
        Provincial Judges Remuneration Commission