Lake of Bays Council Supports AMO's request to deny government changes to Bill 68

The municipality is pushing back on proposed changes of the municipal retirement system

Lake of Bays Council Supported AMO's request to deny government changes to Bill 68, in the January 13, 2026, meeting.

Council voted to support a request letter from the Association of Municipalities of Ontario (AMO) opposing proposed changes to the Ontario Municipal Employees Retirement System (OMERS).

The resolution and accompanying letter ask the Province of Ontario to reconsider legislative amendments contained in the Bill that would alter the long-standing governance structure of the municipal pension plan.

OMERS serves more than 1,000 employers and over half a million employees and retirees across Ontario, including municipal governments, police and fire departments, libraries, school boards, children's aid societies and utility providers.

For more than two decades, the pension plan has operated under a jointly sponsored governance model overseen by two independent corporate boards, a structure that municipalities say has provided stability, accountability and fairness for both employers and plan members.

According to the AMO toolkit presented to council, Bill 68 would replace the existing OMERS Sponsors Corporation with a new Sponsors Council that would no longer have corporate status or independent resources. AMO argues this change could weaken municipal oversight of pension decisions and allow significant plan changes to be made without adequate input from municipal employers, increasing risks to municipalities and taxpayers.

According to the AMO letter, “In practice, this decision would allow pension decisions to be made without meaningful municipal oversight, increasing financial exposure for local governments and, ultimately, local taxpayers.”

The resolution adopted by Lake of Bays states that municipalities are already under significant fiscal strain due to rising costs, downloaded responsibilities and increasing service demands. Council expressed concern that additional or unfunded pension costs could result in higher property taxes or reductions to local services, outcomes the municipality says it cannot absorb.

Council joined AMO through a resolution indicating the Township does not support the provincial government request and instead urges them to maintain sponsor control over appointments to the Sponsors Council and Administration Corporation, guarantee the Sponsors Council's independence from the plan administrator, and ensure it has the resources required to carry out its duties.

The resolution also urges the province to limit the Minister's regulation-making authority over pension plan design and the internal affairs of the Sponsors Council.

Council also directed that the resolution be circulated to the Ministers of Municipal Affairs and Housing and Finance, local Members of Provincial Parliament, and AMO, reinforcing municipal concerns that the proposed governance changes could undermine the long-term sustainability and accountability of the OMERS pension plan.

Mayor, Terry Glover, referred to the provincial government request as having “some overreach going on.” He added that it’s seen “in a number of areas.”

He expressed concern with workers being impacted by the Bill. He said, “The pension can affect employees.

He added, “Municipalities are under significant fiscal strain,” and can’t afford more.