On June 25, 2014, the OMERS Sponsors Corporation (SC), which sets contribution rates and benefits for the OMERS Primary Pension Plan (OMERS Plan), approved a change to contribution rates for normal retirement age 60 members. The rate change does not affect contribution rates of normal retirement age 65 members.
The newly approved contribution rates fully reflect the methodology approved in 2012 and result in a 0.1% reduction in the normal retirement age 60 rates.
Normal retirement age
On earnings up to CPP earnings limit*
On earnings over CPP earnings limit*
*The CPP earnings limit in 2014 is $52,500; the limit in 2015 will be higher.
In 2012, the SC approved a methodology for allocating the overall contributions into the four rates (for each normal retirement age and earnings above and below the CPP earnings limit). The method strikes a balance for different member groups among the various contribution rate setting principles. As part of the approach, the SC approved interim contribution rates with a commitment to fully implement the new methodology by January 1, 2015.
For a description of the methodology for allocating contribution rates, see the Statement of Plan Design Objectives and Strategy (see 5(iv) on page 7).
The decision marks the end of the annual Specified Plan Change process for 2014 to review contribution rates and consider benefit changes. The SC will continue to carefully monitor the OMERS Plan’s funding outlook through its annual planning cycle.