Ontario Launches Consultations on New Public Sector Benefits Pooling Model

Province responding to employer and bargaining agent feedback to explore new system, access economies of scale and save up to $115 million

The Voice of Canada News

The Ontario government is working with the broader public sector to manage compensation growth in a fair, reasonable and sustainable way by consulting on a new benefits pooling model for broader public sector (BPS) participants.

During recent consultations with the BPS about how to achieve reasonable public sector compensation growth, both employers and bargaining agents expressed an interest in exploring a centralized benefits pooling model. According to estimates, a fully-realized pooling of benefits model in the public sector could realize up to $115 million in savings by accessing economies of scale, driving cost savings and identifying administrative efficiencies.

“We are a government that listens,” said Peter Bethlenfalvy, President of the Treasury Board. “We have consulted with the broader public sector in good-faith and have considered all ideas that have been put on the table. With public sector compensation representing approximately half of all spending, the government is working collaboratively with employers and bargaining agents to protect front-line services, public sector jobs and make Ontario fiscally sustainable.”

Consultations will explore stakeholders’ needs, find common objectives, define participant parameters, and develop a viable governance framework and strategy for implementation. Participation in any arrangement would be voluntary.

Through benefits pooling, government can spend smarter, address inefficiencies and duplication and make it easier to leverage group buying power.