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HomeMy WebLinkAboutClinton News-Record, 1975-07-31, Page 19rne ereyinee is �� nicely )ois"Men whi c r t has se eely harrowed tocce its deficit position side 1970. Assessing these sources indiytlirally willillustrate fitly that the utateatt period of the Carus Pensiop Plan is prrhg ruse rapidly than ariginaliy anticipated due to the Indexing of befits. The ` platean period is the point at whichbenefits would rise to eitual contributions and . then cozltinue to increase steadily above them. This would rapidly deplete the former excess amounts of capital from which the province mkt borrow. 'fhe plateau period was originally anticipated to occurs' /around 1984, In- the Federal Government's "White Paper on Income Security" published in 1970 proposals were made to increase the scope and generosity of payments from the C.P.P. Should these proposals be approved (and approval must come from two- thirds of the provinces con- taining two-thirds of Canada's. population) it is estimated that the fund's plateau period will occur in the early years of the 1980's. Gross revenue of the C )P.P. carnes fro three sources: (1) Contributions of employees, employers and the self- . employed, (2) provincial in- terest payments on the cumulative amount borrowed and, (3) repayments of prin- cipal as the terns mature or; at the discretion of the Minister of Finance subject to early recall as the funds are needed. The /gross revenue is then reduced by benefit payments andexte!nses of ad- ministratton.''The re i lti ig net revenue is available as in- vestment capital to the par- ticipating p cea ..in. that year. However, (he actual cash flow to the provinces is the net revenue . cess provincial payments of interest and repayments of . principal. So although the fund level may continue to rise the net provincial cash flow is declining and will become negative in the early 1980's. And finally, the government still has not decided what. ac- tion to take to compensate for this eventual loss of ands. Instead they have been borrowing more and more from it Milyear and this yearIt_ accounted for approximately one-half of the province's financing needs. The funds of both OMERS easing the " : l ice' 1t R Of the 3 ntStudy els eb. 14,. 191'4) support finding t if fur. utio s viere to be inv i fuD ramie , of txlatel securities under , the Pension Benefits Act end its regeiutior rather than in the non- madretable Ontario deben- tures, OMERS would receive a higher rate of return on the system's funds; possibly from a minimum of ' percent per annum to a maximum of I percentIyerenrltm. Such a higher return on the basis of funds to be available for investment would con- siderably increase the System's investment income. As a result of the impact of inflation - (pensions are being determined on the basis of earnings at or near retirement and the purchas:aug power of pensions is protected by in- creasing the 'pension each year by an index such as the CPI) - OMERS requires additional revenue to increase its benefits. Therein lies the significance of investments increasing in- vestment income. At this point,a prime question is; should the funds of OMERS be dedicated to:. (1) a reduction of the impact of Ontario's borrowing onthe public capital market; (2) a reduction 'in the cost of Ontario's long term money; (3) the enhancement of Ontario's credit; OR II) the exclusive interests of the employees and members of °VIERS. With OSIERS acceptability assured (in early 1970's), as OMERS actuaries ac- cumulated reliable data with regard to members' age, sex, disability, retirement, mor- tality etc., and as the System matured and stabilized, the need for support from its custodian, the Province of Ontario which was essential in year one, was no ' longer essential and in fact was less adequate now ten years later. (i.e. Ontario had initially issued 40 year debenlures which the IUItId catild not ham' obtai d:' elsewhere and guaranteed the fund's pension benefits.) However, even though the funds are supposedly guaranteed by ` the province, t sere--ris _no---sectrian---in- --the OMERS Act that stag that the province is to provide monies to pay OMERS Pensions if the system were unable todo so. In fact, Section 10 of the Act. provides that "the con- tributions of the employees shall be such an amount as is required in addition to the contributions of the members and interest earned to provide for the payment of benefits and expenses". In other words, the municipalities and dotal boards of Ontario as "employers" under the OMERS Act are obliged to discharge OMERS' liabilities. The probability of pmt rote) is 01 #Ie em td ...served if ere to he 'wed in marketable securities of the Canadian caspital. market! Knowing the anticipated growth oft PIKERS, if 20percent of itsfunds were. to be invested in marketable Ontario provincial bonds (the average for a Cdn. pension fund is 25 percent In provincials), then the additional sums the province of Ontario would have to borrow in the public market would be as follows: 1974 - $96,0+0,000; 1975 -5110,00%000; i; I976 - $122,000.000; 1977 - $134,000.000; 1978 - $159,00Q,000; 1979 - $170,000,000; 1980 - 8185,000,000; 1981 - $201,000,000; 1982 - 8217,000,000; 1983- 8232,000,000 The sequences of Ontario being required to borrow such sums in the public market rather than frgrn OMERS would be an -increase in the supply of the province's securities in the market and, an increase in the price of money to theprovince. It is clearly a matter of time before the province loses this source ofincome. The Teachers° Superan- nuation Fund appears to be headed in the same direction since all of its investments are presently held in Ontario debentures with coupons ranging from 6 percent to 8.57 percent. Pension Funds must 'out df necessity try to obtain the highest rate of return possible on their investments in order to comply with demands for in- .. creased benefits brought on by unyielding inflation. So fax this rxnon-public borrowing - accounts for- 63 percent of the net financing requirements. We are Left with 8648 million still to be found to baiting the 1975 bud... The proKince pas alnead a to the mark+ 'ul gone million. Over half -way through, the year and we still have another $498 million to find. How do they propose ,to ob- in this with interest rates remaining at all time highs woe m oyer '. ' maxi wit them keys on his chain w r uee . well and thetik ith the moat change in his ticket Way Rathwell. and M rs. ►'Arc , .t athwell found to be the couple wl#h thea grandchildren. Helen Stewart, was the lady with .the biggest earrings, and 'ody Horton was judged the • youftgest" child present. Cela Slom�an was the oldest person with fai>de teeth and Tina Bruinsma was the person with the most letters in her name. Verna Rathwell was the person with the most buttons on her shirt. In running races, Kent Rath - well was the winner in the preschoolers; Becky Rathwell won the 5-8 years of age and Brenda Miller and Craig Miller were the winners of the 16 and under. Dodgeball for men over 16 was won by Bruce Rathwell; Don Rathwell took the kick the slipper and Verna Rathwell caught the ladies' throw the football. The balloon and • ergeant Thomas R. Redpath (right) of the Goderlch Ontario Provincial Police was a proud nun on July 17 when be and Corporal R. Lindsay of Walkerton were presented with the Long Service and Good -Conduct Medal. The medal Is awarded to a mfr of the O.P.P. force of • the fast l0 of which have been irreproachable character who his served not less than �;, with good conduct end satisfactory servicer The award d reelpients were -honoured at a luncheon at the Cardinal Motel in Varney near Mount Forest, Where Asssistant CCcnunlssloner N. K. McCombe of No. tDlstric* Headquarters in Mount Forest presented the medals. Geis pictured above with Sergeant Redpath after the presentations. The Huron Country Playhouse new Barn Theatre is now officially open and the last half -of -its 4th season expects to draw more and more en- thusiastic crowds. The Playhouse has seen record-breaking audiences for the last two shows Dames at Sea and The Importance Of Being Earnest, This week, by popular request, Jacques Bret Is Alive And Well And Living In Paris is playing. The popularity of this:. show is indicated by the number of requests that have been received to stage Jacques Bret. His music and evocative poetical commentary are unique. One and all will want to listento his views on love and life - this is a show no one should miss. Charlene Shipp' who char- med audiences in Dames at Sea, will return to lend her talents to this production, Robert Landar, her stalwart hero .in-tfames, wrul alsoobe ons stage to capture the humor and sadness of Jacques Bre!'s music. Christopher Spence makes his first appearance with the Thum Country Playhouse Moments like these are what the forests of Canada afford us. d► PROTECT THEM. this production. He has worked extensively as an actor. the most recent role being that of Richard III for Theatre Calgary. He has also appeared in several films, including A Clockwork Orange, If, The Last Detail, The Paper Chase and most recently on television in Norman Campbell's production of She Stoops To Conquer for CBC. Brel marks Christopher's first singing engagement. Making her debut on the Playhouse stage is Mary Neville an apprentice on the Playhouse staff. She has studied' at the University of Windsor and has performed in The Matchmaker and Ring Around the Moon during her studies there. The last two weeks of the season will 1* special return engagements of the best play and the best musical of this season. For everyone who has missed their favourite play, these two weeks will give them their opportunity. But don't miss this week's show, starting Wednesday - Jacques Bret Is Alive And Well And Living In Paris. FOR ALL YOUR LUMBER & BUILDING SUPPLY NEEDS Bats are beneficial Batsfeed on mosquitoes and other night -flying insects, many of which are annoying and' destructive pests. For this reason, it is best not to destroy bats, but to keep them out of. buildings. Illumination ofattic' areas with spotlights or safety lamps during June, July and August will discourage bats from roosting there. They may also be repelled by naphthalene or paradichtorobenzene (moth flakes or crystals). Three 'to five pounds of moth crystals sprinkled in an average -size attic during warm weather should drive bats out. OPTOMETRY INSURANCE :'aaa.,we anun- 1.E. LONGSTATT OPTOMETRIST CLINTON—ION. ONLY r ISAAC ST. 4112-7000 SEAFORTH BALANCE OF WEEK GOVENLOCic ST. 527-1240 R.W. BELL OPTOMETRIST The Square. GODERlCH Sts -7661 K.W. COLQUNOUN INSURANCE a REAL ESTATE Phones: office 482-9747 Ras. 482-7804 HAL HARTLEY GENERAL INSURANCE— GUARANTEED INVESIMENTS Clinton . .a Office: 411 BOX 1033 212 JAMES 5T. HELEN R. TENCH , a.A. PUBUC ACCOUNTANT TEL. 02452 • CLINTON ONTARIO NORM WHITING UCEHSED AUCTIONEER APPRAISER Prompt. Courteous. Efficient ANY TYPE. ANY SIZE, ANYWHERE WO glen complete este service PROFIT BY EXPERIENCE Pim Convict 22549114 EXETER MAN !AVIS INSURANCE ALUMINUM PRODUCTS kir Air -Master Atuminua. Doors and Windows and AWNINGS and RAILINGS. JERVIS SALES 4 • The all Ontario Trust Company begun in 1889 Member Canada Deposit insurance Corporation Pumps and injectors Repaired Per Alt Popular Mass. limn Fuel Injection Equipment ezyfield Rd.. Clinton -4 •971 Your provincial government has recently established the Ontario Beef Calf Income Stabilization Program -a voluntary program designed tic • stabilize the.income of recognized beef calf producers in Ontaryio. • encourage a continuing steady supply of Ontario -produced beet stocker calves It will establish a floor on the amount of money a producer may expect to receive in years of poor calf paces. Every producer of beef calves"in the province (including cream shippers) is eligi- ble to participate in this program. which forms the first part of an overall Farm In- come Stabilization policy. You can partici- pate: by contracting to join theprogram for a five-year period and by paying an annual fee for every eligible beef"caw you enrOII in the grog am: urthi - overnment will iso contribute to the program. For 1915 your fee will be $5 per cow, however. for this year fees are deferred until payments to producers are made. The provincial government contracts to make a grant per cow to participating producers if the average market price for Ontario - produced stocker calves fates below the stabilized price of 50e per pound in 1975: • Payments will be made in December or .as soon as possible there- .dr. The enrolment p...riod for eligible produc- ers in 1975 ends August 31 Complete information on the program. as well as enrollment formiand contracts. are available at your local office of the Ontario • Ministry of Agriculture and Food. Ministry of Agriculture and Food t8liitiam Stvmart, Minister Rata "iiYLIST COMPANY SINCE 1180 iNA;t+iAGER. J.p. (DAVE} GROSS Chartsrad Accountants a 25a 'Main 81., E*.tar ARTHUR W. READ Resident Partner BUS. 235-0120 RES. 2354075 Government of Ontario William Davis, Premier