What are the latest developments in the pension world?

December 01, 2013

Recent important developments include a draft report from the Canadian Institute of Actuaries (CIA) Study on Canadian Pensioners Mortality, and pension reform initiatives at both the provincial and federal levels.

CIA Study – The soon to be released CIA study shows increasing longevity and suggests the trend will continue into the future. We are diligent in monitoring OMERS plan member experience and are confident that we are accurately reflecting today's mortality in our valuations and projections. We do not yet know the extent to which our assumptions for future longevity improvements will need to be revised, as the study has not yet been finalized. Any such changes could potentially increase costs which may have to be addressed through contribution and/or benefit changes. We will provide more information when we are able.

Pension Reform - This topic continues to be on the agenda of provincial and federal governments. Discussions range from enabling Pooled Retirement Pension Plans (PRPP), development of an Ontario based supplemental plan, to enhancements to the Canada Pension Plan (CPP). As you know, OMERS benefits and contributions are linked with CPP. Current proposals vary considerably and it is too early to determine how they would impact OMERS, or how OMERS would adapt to any changes to the CPP. We will continue to monitor these developments.

As these and other events unfold, we will communicate with OMERS stakeholders when there is more definitive information available through our website and the e-newsletter.

Please forward any suggestions, questions and comments to stakeholderrelations@omers.com. Future issues of this e-newsletter will feature a selection of your questions and our responses in our “You asked us...” section.

 
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