Bill 206 (An Act to Revise the Ontario Municipal retirement System Act) was proclaimed on June 30, 2006. This legislation established an independent dual governance model for OMERS and gives employers and employees control over the pension plan. The Provincial government was replaced as sponsor by the Sponsors Corporation (the “SC”), which represents employer, employee and retiree members of the plan.
The SC has responsibility for plan design. This means that the Sponsors Corporation determines benefit changes, contribution rate adjustments and any amendments to change the reserve to stabilize contribution rates. The SC is also charged with setting compensation levels and amending the appointment protocol for both the SC and the Administration Corporation Board.
The OMERS Administration Corporation (the “OAC”), acting as the other side of the dual governance structure, is responsible for the day-to-day administration of the pension plan, including the management of investments and pensions.