Ontario Expert Commission on Pensions
OMERS response (February 2009)
The report from the Ontario Expert Commission on Pensions was released on November 20, 2008. The Government of Ontario set up the Commission more than two years ago in order to review the province’s pension system.
Overall, OMERS is pleased with the report’s direction and with many of the individual findings and recommendations aimed at strengthening the security, affordability and fairness of pension plans in Ontario. The Commission’s report represents a positive, and long awaited, first step in the crucial task of reforming the current pension system in Ontario.
OMERS also agrees that maintaining momentum is crucial to this initiative’s success. Pension reform will require a phased implementation approach. We believe that the time for action is now and the Ontario government must move quickly to prioritize and execute the first phase of pension reform.
On February 26, 2009, OMERS submitted Turning Recommendations into Action – our response to the report from the Commission.
Our response highlights recommendations where action can and should be taken immediately, including the five following actions.
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Immediate Priority Actions | |
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1 |
Exempt public sector jointly-sponsored pension plans from the Quantitative Investment Restrictions by immediately amending the Pension Benefits Act (PBA) regulations. Suggested wording is provided in Section 2.1 of our response. |
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2 |
Exempt public sector jointly-sponsored plans from the solvency funding requirement by immediately amending the PBA. Suggested wording is provided in Section 2.2 of our response. |
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Other Priority Actions | |
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3 |
Make change happen by establishing an effective regulatory framework – begin the creation of an effective structure for pension reform by establishing the Pension Champion and the Ontario Pension Regulator. |
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4 |
Adopt a principles-based approach, wherever possible, to drafting legislation – starting with a principles-based “prudent person” approach for investment of pension funds. |
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5 |
Implement the Commission’s recommendations supporting consolidation of the pension industry. Consolidation can bring significant and widespread benefits to Ontario’s pension system. The current economic crunch is putting extreme pressure on small plans and there is an immediate need for consolidation to allow smaller pension plans to remain sustainable and larger plans to grow. |
OMERS response
OMERS Submission (October 2007)
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 was the first submission of OMERS Administration Corporation and Sponsors Corporation boards to the Commission.