Ontario Expert Commission on Pensions
OMERS President and CEO, Michael Nobrega, appeared before the Ontario Expert Commission on Pensions on October 19, 2007 to present OMERS submission, Closing the Gap Between Pension Regulation and Best Practices. This is a joint submission of OMERS Administration Corporation and Sponsors Corporation boards.
OMERS recommendations
OMERS is a leading example of a successful multi-employer defined benefit pension plan. The success of the plan stems from its unique structure of being jointly funded, jointly governed and jointly sponsored by the employers and members who contribute to the plan. The OMERS model (and its 40 years of experience) could serve as a template for solutions to many of the issues the Commission is considering. OMERS is making four recommendations:
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Recommendation |
Reason |
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1 |
Amend the Pension Benefits Act to consist of the fundamental principles applicable to all pension plans in Ontario. |
A principle-based approach to legislation is more flexible and enables regulation to evolve in step with industry best practices. |
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2 |
Exempt public sector jointly sponsored plans from the quantitative restrictions on pension fund investing |
Rules are outdated and impose complexities and costs that ultimately reduce investment returns. |
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3 |
Exempt public sector jointly sponsored plans from the solvency funding requirement. |
Contribution rates and taxes will not need to increase to fund a wind-up scenario with negligible probability. |
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4 |
Enhance the regulatory relationship by moving to a more co-operative model and providing the regulator with additional tools and resources. |
A consultative approach will result in more proactive oversight and enable plan administrators to act with greater certainty to the benefit of their members. |
OMERS submission 