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Pensions - OPSEU. McHayle v. Ontario Labour Relations Board
In McHayle v. Ontario Labour Relations Board (Div Court, 2024) the Divisional Court considers aspects of the OPSEU pension plan:[2] Mr. McHayle’s allegations against OPSEU relate to an amendment to the OPSEU pension plan, of which he was a member. By way of background, when an OPSEU member transfers out of the OPSEU bargaining unit, the person can no longer remain a member of the OPSEU pension plan and, if remaining in the public service, is required to transfer into the Public Service Pension Plan. Before the amendment to the plan, the OPSEU pension plan paid those who terminated their membership and transferred to the Public Service Pension Plan a commuted value excess payment. This payment was the amount by which the member’s credit under the OPSEU pension plan exceeded the amount that OPSEU was required to pay into the other plan.
[3] Effective September 27, 2013, OPSEU and the Crown agreed to amend the OPSEU pension plan. This was called Amendment 22. Under Amendment 22, the OPSEU pension plan was modified to eliminate the payment of commuted value excess payments to transferring members.
[4] Mr. McHayle terminated his membership in the OPSEU pension plan in April 2016 when he accepted a managerial position in the Ontario public service. Because Amendment 22 was in place at that time, Mr. McHayle did not receive a commuted value excess payment.
[5] Mr. McHayle filed his application before the Board on September 28, 2022, alleging OPSEU violated its duty of fair representation by entering into an agreement with the Crown as reflected in Amendment 22.
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