Executive summary

The Provincial Judges Pension Board (PJPB or Board) is a trust agency, and its 5 Board members are responsible for the administration of the Provincial Judges Pension Plan (PJPP or Plan) and the investment of its Registered Pension Plan (RPP) Trust Fund and Retirement Compensation Arrangement (RCA) Trust Fund. A chair is selected from the among the 5 members and one member is a representative of the Association of Ontario Judges (AOJ).

The Provincial Judges Pension Plan is a contributory defined benefit plan providing pensions and pension services to 290 sitting judges and more than 335 retired provincial judges and survivors. Since the implementation of fund redesign effective January 1, 2020, pensions and survivor allowances are paid from three sources: the RPP Trust, the RCA Trust, and the Supplemental Pension Account (SUPP). For the fiscal year ending March 31, 2021, the Plan paid a total of $54.4 million in pensions and survivor allowances.

The Board has no employees to carry out its responsibilities. Ontario Pension Board (OPB) and the Investment Management Corporation of Ontario (IMCO) have been named to play key roles in supporting the Board and provide defined services to the Board on a cost recovery basis. Plan expenses related to RPP, and RCA administration are paid from the respective funds. Expenses relating to the SUPP are paid directly by the Province.

In 2021, the Board recommended the Plan’s year end be changed from March 31st to December 31st to support improved governance and efficient Plan operation. By changing the year end, initiatives from the final quarter of last year’s business plan will overlap with this business plan. During the transition we will import those objectives into the first quarter of the 2022 calendar year and report on their completion in 2023 under the 2022 Annual Report.

The operation of the Plan continues to stabilize as PJPB develops its oversight standards and capabilities. In 2022, the Board will be committed to enhancing the pension governance system, cultivating the Plan’s viability, delivering excellent member service, and building effective stakeholder relations. We are also mindful of the Sponsor’s priorities within the Mandate letter and our objectives reflect a shared focus that includes:

  • Providing effective oversight of the operational and enterprise risks encountered by PJPB and the PJPP, including associated risks associated with the COVID-19 pandemic
  • Establishing operational structures and processes that support and measure effective administration and performance of the Plan and its funds
  • Providing strong oversight of both IMCO, and OPB, in their respective roles under the Plan
  • Delivering superior client service to help members understand their pension entitlements, rights, and responsibilities under the PJPP

Although there is still work to be done, the Board has established solid footings for Plan governance and operations. We are looking forward to working with all our stakeholders in the coming year and beyond so we can continue to deliver on the Plan’s pension promise.

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.

PJPP Funding Redesign came into effect January 1, 2020, expanding both the Board’s mandate and its size. Funding redesign had a major effect on the Plan’s governance and operational framework adding broader oversight responsibilities for administration of the Plan and its two new trust funds. 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 Provincial Judges Pension Board (the Board) oversees the management of the Provincial Judges Pension Plan and investment of RPP and RCA funds for sitting and retired judges, and their survivors including eligible children. The Board is the source of reliable unbiased pension information needed to support effective decisions relating to pension operations and how Clients wish to participate and retire under the Plan. Maintaining a sustainable, tax efficient pension plan is vital to ensuring that the Plan’s Members, Pensioners, and Survivors continue to receive a secure, predictable, lifetime income in retirement.

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 expanded 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 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, cultivating 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. In 2022 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 a review of Board self‐assessment approach and instituting Board education programs (for example fiduciary training).

Cultivate the plan’s long‐term viability (security of the promise)

PJPB is 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, with the engagement and recommendations of professional expert advisors AON and IMCO, has developed 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 include pension service offerings to 300 active members. OPB was appointed to provide expanded, accountable pension operations management 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 participation in the Plan. The Board will also seek to continue to improve existing services to the Plan’s 335 pensioners and survivors while maintaining efficient and accurate pension payroll operations. The PJPP is a relatively small but complex pension plan with limited opportunity to achieve the economies of scale associated with high volume operational environments. 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 the presence of an AOJ representative 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.

The Sponsor amended the Plan year‐end to the calendar year and as a result some deliverables that were expected in the quarter ending March 31, 2022 under last year’s Business Plan were moved to the 2022 Business Plan

Major program activities for 2022 include:

Interim e‐communication and fulfillment solution

The APS project highlighted the need for a secure method of electronic communication between the Board and sitting judges. We were grateful to The Chief Justice Office for facilitating electronic delivery of the APS by providing access to their e‐mail system. The Board requires a temporary, secure communication channel until it can establish a permanent solution within OPB’s communication infrastructure. We will need to assess options and decide the matter early in 2022 to permit secure delivery of the next APS in September 2022. Ensuring the Board is in a position to communicate electronically is consistent with government‐wide priorities to adopt digital delivery.

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).

Establish PJPB ESG/Investment Beliefs

Many pension plans have adopted policy to set out how they want to incorporate ESG factors into their investment decision‐making. The Board will consider whether to proceed with documenting its ESG/Investment Beliefs in 2022.

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 Board 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 increased from initial estimates due to the revised nature of the responsibilities (i.e., OPB assuming a management role) 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 (for example actuarial and legal) for the Board
  • Ongoing development of governance and operations structures and processes to support PJPB oversight of the redesigned Plan and its funds
  • Ongoing consultation on emerging plan issues and projects

Revise Board mission and values statement

The mandate of the plan has changed, and the existing mission and values statements need to be modernized. A restatement of the mission and values will inform the Board’s Communication policy and will be reflected in the 2023 business plan.

Establish objectives for Internal Audit and Finalize Internal Audit Plan

Part of the planning for regular internal audits will require dialogue between the Board and OPB to identify audit program objectives and how best to achieve them. Since OPB audits many identical processes used in the administration of both PSPP and PJPP it may be advantageous to leverage audit work that is already being done. The Board considers internal audit to be a vital tool for assessing performance and achieving accountability. This initiative will help schedule resources and overall delivery of the internal audit.

Develop and approve business continuity plan with service providers (OPB and IMCO)

The COVID‐19 Pandemic struck just as the Board was implementing new governance structures and processes to oversee the Funds and Plan. Our ability to carry out our fiduciary obligations to the members of the Plan was not affected due to OPB’s and IMCO’s existing business continuity plans that helped mitigate risk during this challenging period. The Board needs to be certain that it can interact effectively with its key service providers when responding to a risk event affecting the Plan’s investments, and governance and operations. Establishing a more formal mechanism to assess that capability will support the Board’s risk management capabilities.

Develop IT Electronic Service Delivery Plan including proposal for website development.

The Board considers the development of IT service delivery to be vital for improving our service offerings as well as making progress against government priorities for digital delivery and customer service. We believe that creating a service delivery plan will help define the Board’s expectations so we can more effectively explore interim and longer‐term solutions that take advantage of OPB’s system modernization initiative initiatives and deliver a more cost effective PJPP solution.

Review and update 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 needs to be assessed to ensure it is aligned with the Board's expanded mandate. The Board will consider what, if any, adjustments are required for the reconstituted Board.

Assess new Board member orientation needs and develop a formal on‐boarding program

A good Board member orientation program provides new members with important information about the Plan, the Board, and their responsibilities so they can quickly transition into their new role. Currently PJPP Board has several orientation tools available but defining the process will help achieve consistent results for a more efficient transition into their Board role.

Update performance measurements for service providers according to emerging requirements

The Board needs to consider the effectiveness of current Key Performance Indicators (KPI’s) in the redesigned plan setting.

Complete annual actuarial valuation

The Board 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, and the next valuation will be prepared as at January 1, 2022. 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.

Resources needed to meet goals and objectives

The Board expects to meet its objectives through the ongoing application and operation of its restated 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. These fees are expected to cover all aspects of projects including OPB staff resources.

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

  • OPB Facilities, Management, Administrative and Financial Services (OPB fixed fee services).
  • OPB Project Services:
    • Project Funding (for example 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 10 ‐ Financial Budget.

Risk identification, assessment and mitigation strategies

OPB manages the development, ongoing monitoring and reporting of PJPB’s enterprise risk framework and began work in 2021 to develop and adopt 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:

  • 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 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

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 discussion under Section VI “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 some uncertainty relating to variants of concern is expected to continue into the future. PJPB will require on‐going assurance from OPB and IMCO concerning the effectiveness of their business continuity plans.

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 ensure 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.

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.

Staffing, human resources, and compensation strategy

The Board has no employees. 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 as 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 2022 fiscal year will be the third year of PJPB operation. Budget estimates were developed according to the fee schedule under the draft 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 introduced the first Annual Pension Statement for sitting Judges in 2021 and is committed to delivering a regular Annual Pension Statement in the following years. The Budget estimates for projects include the production of the APS in 2022, and a Board initiative to revise its mission and values to align with the expanded mandate under Plan redesign.

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 (January 1, 2022 to December 31, 2022)

ItemRPP footnote 1RCAfootnote 1(SUPP)footnote 2Total
OPB administration under SLA footnote 3, footnote 4

491,846

491,846

338,109

1,321,801

Insurance

39,167

39,167

39,166

117,500

Legal

33,333

33,333

33,333

100,000

Actuarial

15,000

15,000

15,000

45,000

Project costs

50,000

50,000

50,000

150,000

Total

629,346

629,346

475,609

1,734,301

Provincial Judges Pension Plan - 3 Year operating expense projection (January 1, 2022 to December 31, 2024)

3 Year projection – full plan2022 (as above)2023 (2% increase)2024 (2% increase)
OPB administration under SLA

1,321,801

1,348,237

1,375,202

Insurance

117,500

119,850

122,247

Legalfootnote 5

100,000

100,000

100,000

Actuarialfootnote 6

45,000

45,900

46,818

Project costsfootnote 7, footnote 8

150,000

100,000

100,000

Annual operating expense

1,734,301

1,713,987

1,744,267

Reality

PJPB does not control reality 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 development and maintenance of pension and other business systems, the Board has not needed to establish a PJPP specific IT plan. The Board flagged system responsibility for further discussion in 2022 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 (for example expected, and actual usage rates) once implemented.

Initiatives involving third parties

The Board does not have employees 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 will continue into 2022 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 will be prepared as at January 1, 2022.

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 committed to producing its first communications policy by the first quarter of the 2022 calendar year. The policy serves 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 the next APS by September 2022. APSs 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 however the Board will be assessing temporary arrangements to support e‐communication directly with sitting judges. To ensure security, the Board will likely continue to rely on more traditional oral and written communication platforms to reach its retiree and survivor 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 those related to 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.

There are no media or public consultation anticipated in 2022.

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

Each year the Government informs provincial agencies of its high‐level expectations for their governance and operation in the form of a mandate letter from their Minister. The agencies in turn incorporate these priorities into their strategic plans During the 2022 fiscal year the Minister has specifically asked the Board to focus on providing:

  • effective oversight of the operational, strategic, legal, and financial risks encountered by PJPB and the PJPP, including managing and mitigating the continuing impacts or associated risks of the COVID‐19 pandemic;
  • effective governance and operations structure and processes that support and measure effective administration and performance of the redesigned Plan and its funds; and
  • strong oversight of both the Investment Management Corporation of Ontario (IMCO), in its role in managing assets the PJPB is accountable for, and the Ontario Pension Board (OPB), in its role as management and regarding its service level responsibilities in respect of the PJPP.
  • Superior client service that helps members understand their pension entitlements, rights, and responsibilities under the Plan

The government has also communicated eight government wide priorities that apply to the Board. Not all are relevant, and we have identified all that are applicable to the Board’s operations as follows:

  1. Competitiveness, Sustainability and Expenditure Management
    • operating within the Board’s financial allocations
    • identifying and pursuing opportunities for innovative practices, and/or improved program sustainability
    • complying with applicable direction related to supply chain centralization
    • identify opportunities to advance the Ontario Onwards Action Plan

    Comment ‐ The Board continues to build its governance and operations and is committed to integrating these priorities where possible.

  2. Transparency and Accountability
    • abiding by applicable government directives and policies and ensuring transparency and accountability in reporting
    • adhering to requirements of the Agencies and Appointment Directive, Public Service of Ontario Act ethical framework, accounting standards and practices, and responding to audit findings, where applicable
    • identifying appropriate skills, knowledge and experience needed to effectively support the board’s role in agency governance and accountability

    Comment ‐ 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 composition.

  3. Risk Management
    • developing and implementing an effective process for the identification, assessment and mitigation of risks, including planning for and responding to health and non‐health emergency situations such as COVID‐19
    • developing a continuity of operations plan that identifies time critical/essential services and personnel.

    Comment ‐ The Board established its new risk framework, documenting risk by category, assessing severity, and identifying mitigations and action plans. The Board adopted quarterly reporting requirements and will continue to build mitigations to ensure continuity when responding to emerging risk.

  4. Workforce Management

    Comment ‐ Not applicable as the Board does not have employees.

  5. Data Collection
    • improving how the agency uses data in decision‐making, information sharing and reporting, including by leveraging available or new data solutions to inform outcome‐based reporting and improve service delivery
    • supporting transparency of data work and data sharing with the ministry, as appropriate

    Comment ‐ The Board will consider incorporating outcome objectives into key projects for the coming year including the communication policy and Annual Pension Statement.

  6. Digital Delivery and Customer Service
    • exploring and implementing digitization or digital modernization strategies for online service delivery and continuing to meet and exceed customer service standards through transition
    • adopting digital approaches, such as user research, agile development and product management

    Comment ‐ The Board will be examining the feasibility of digital delivery as part of the development of a new communication policy. PJPB will seek updates from OPB and IMCO on approaches and tools used to manage COVID‐19 in those workplaces.

  7. Diversity and Inclusion
    • developing and encouraging diversity and inclusion initiatives promoting and equitable, inclusive, accessible, anti‐racist and diverse workplace
    • demonstrating leadership to an inclusive environment free of harassment
    • adopting an inclusion engagement process to ensure all voices are heard to inform policies and decision‐making

    Comment ‐ The Board does not have employees but will seek assurance through relevant OPB and IMCO reporting that workplace culture and client interactions meet these requirements.

  8. COVID‐19 Recovery
    • Identifying and pursue service delivery methods (digital or other) that have evolved since the start of COVID‐19
    • Supporting the recovery efforts from COVID‐19

    Comment ‐ The Board is committed to supporting measures intended to mitigate the impacts of COVID‐19 on service delivery and work with our service providers to understand and collaborate on our response.

Organizational chart (Optional)

Organizational Chart has been developed and appears at Appendix C.

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
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

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

  • 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 (for example 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

Appendix B ‐ Implementation plan table

202220232024
  • Interim e‐communication and fulfillment solution
  • Revise Board Mission and Values statement
  • Establish Objectives for Internal Audit
  • Develop and approve business continuity plan with service providers
  • Develop IT Electronic Service Delivery Plan including proposal for website development.
  • Finalize Internal Audit Plan with required approvals
  • Remuneration Commission
  • Review and update Board self‐ assessment program
  • Assess new Board member orientation needs and develop on‐boarding program
  • Establish PJPB ESG/Investment Beliefs
  • 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
  • Board training on fiduciary obligations
  • Review of fees as provided in the SLA
  • Internal Audit
  • Remuneration Commission

Remuneration Commission

On‐going

  • Regular production and delivery of Annual Pension Statement
  • Preparation of annual actuarial valuation
  • Monitor Remuneration Commission progress and implement based on accepted recommendations
  • 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.

Appendix C – Provincial Judges Pension Plan organization chart

  • 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