Meeting Summary 

OAC Board – May 16, 2019

Debrief – Joint OAC/SC Strategy Session

In 2015, OAC and the SC approved a single OMERS 2020 Strategy (the Strategy), fulfilling a key recommendation of the 2012 Review by Tony Dean.  In 2018, Management of both corporations began working on a Strategic Framework (2030 Strategy) & Five-Year Strategic Priorities (2025 Strategy) (together, the Strategy), keeping the Boards apprised of their progress.  At the Joint OAC/SC Strategy Session on May 14, 2019, the Boards provided feedback to be incorporated into the Strategy.

The Board Chair advised that both Boards need to approve the Strategy and encouraged the OAC Board to approve the Strategy at this meeting, with the condition that approval of the Strategy was dependent on similar approval by the SC Board at its meeting to be held on May 21, 2019.

Following discussion, the OAC Board approved and endorsed all the elements of the Strategy related to the business and operations of OMERS Administration Corporation and authorized the Board Chair to make such non-material amendments as he deemed appropriate, on the recommendation of the CEO.  The OAC Board also authorized and directed the CEO to take all the necessary actions to implement the Strategy and report back on the progress against the Strategy at least semi-annually.

Review Appeals Rules, Appeals Manual and By-Law No. 4

The Appeals Committee work plan directs the Committee to review and consider amendments to the Rules Respecting Practice and Procedure for Appeals (the Appeals Rules), the Appeals Manual and By-Law No. 4.  OAC Management recommended several amendments to the Appeals Rules and no changes to the Appeals Manual or By-Law No. 4.

As recommended by the Appeals Committee at its meeting held on May 14, 2019, the OAC Board approved the amended Rules Respecting Practice and Procedure for Appeals, effective May 16, 2019.

2019 Supplemental Plan Contribution Rate Study

The Supplemental Plan is a stand-alone jointly-sponsored pension plan that provides enhanced benefits on top of those provided under the Primary Plan.  Supplemental Plan benefits are available only to police officers, police civilians, firefighters and paramedics.  To date, none of these groups have negotiated membership under the Supplemental Plan; however, because of the potential for bargaining of supplemental benefits, the SC needs to set the contribution rates for this Plan.

OAC is responsible for setting minimum contribution rates and the actuarial assumptions and methods which underpin their determination for all OMERS pension plans.  Based on the advice of OAC’s external actuary, Willis Towers Watson, the Audit & Actuarial Committee recommended that the OAC Board approve an updated set of actuarial assumptions, methods and the resulting minimum contribution rates for the Supplemental Plan.

As recommended by the Audit & Actuarial Committee at its meeting held on May 15, 2019, the OAC Board approved and transmitted to the SC without any recommendation the following information:

  • the actuarial assumptions and methods to be used to determine the minimum contribution rates under the Supplemental Plan; 
  • the 2019 minimum contribution rates under two potential membership level scenarios for consideration by the SC in setting future Supplemental Plan contribution rates; and 
  • the 2019 minimum rebound contribution rates under the Primary Plan for consideration by the SC in setting future Primary Plan contribution rates.

Governance Principles

In 2013, in response to the 2012 Review of the OMERS Act conducted by Tony Dean, OAC adopted a set of Governance Principles that provided a public demonstration of its commitment to governance excellence in order to best meet its obligations to plan members, employers and other stakeholders.  The Governance Committee conducted a review of the Governance Principles in 2016 and added an additional principle relating to “Privacy and Confidentiality” to reflect the concerns of the OAC Board at the time.

Each year, the Governance Committee considers a report on how OAC is managing against the Governance Principles.  At its February 21, 2019 meeting, the Governance Committee considered the 2018 report and was advised that Management would bring forward a review of the Governance Principles and any recommendations for changes to the Governance Principles at its May 2019 Committee meeting.

Management recommended that an additional principle entitled “Stewardship” be added to the Governance Principles.  Stewardship contemplates the long-term management of the assets of plan members over the life cycle of their participation in the Plan.

Following questions and discussion, and as recommended by the Governance Committee at its meeting on May 15, 2019, the OAC Board approved the revised Governance Principles, effective June 1, 2019.

Proposed Investment

The OAC Board considered a pending investment transaction; however, due to legal and contractual reasons, the decision is required to be kept confidential.