The OMERS Sponsors Corporation (SC) has completed its annual decision-making cycle and made a decision related to its 2015 Plan change review. For 2015, the SC will not consider benefit or contribution rate changes to the OMERS Pension Plans. The SC will consider the matter again in 2016 under its annual decision-making process, including Plan change suggestions that have been submitted by stakeholders.
The SC, which is made up of equal numbers of employee and employer representatives, is responsible for the benefits and contribution rates of the OMERS Pension Plans.
In 2014, the SC adopted its Funding Management Strategy, which outlines how benefits and contributions will be modified as the OMERS Primary Plan (the Plan) cycles through periods of funding deficit and surplus. The Funding Management Strategy and related decision-making process provide stakeholders with a clear understanding of when Plan changes may be considered and why.
Although the Primary Plan is currently in the Deficit Management zone of the Funding Management Strategy, the funded status improved in 2014. Under the Funding Management Strategy, there is no requirement to make changes to the Plan, and the SC has decided not to consider changes this year. The measures introduced in 2010 remain sufficient to manage the financial health of the Plan. As part of the annual valuation cycle, the SC will consider the issue again in 2016.
Beyond managing the financial health of the Plan, there are other reasons to change and evolve benefits, such as pension legislation developments or minor administrative matters. In 2014, the SC received related input from stakeholders but will defer its decisions on these ideas until 2016. In the meantime, the SC will consider whether the issues raised can be addressed appropriately and practically. If the SC feels changes are warranted, it will communicate well in advance of deciding on the issues.
The SC will continue to monitor the health and sustainability of the OMERS Pension Plans. The SC is committed to being transparent in its decision-making and to providing clarity on how the Plans are managed.