The OMERS Sponsors Corporation (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.
Although the Primary Plan is currently in the Deficit Management zone of the Funding Management Strategy, the funded status improved in 2015. Under the Funding Management Strategy, there is no requirement to make changes to the Primary Plan, and the SC has decided not to consider changes to the Primary Plan this year. The measures introduced in 2010 remain sufficient to manage the financial health of the Primary Plan. As part of the annual valuation cycle, the SC will consider the issue again in 2017.
However, the SC has decided that it will consider changing the contribution rates of the Supplemental Plan. Although there continues to be no members in the Supplemental Plan, it is necessary to ensure the contribution rates reflect our current expectations about the future. A recent study conducted by OMERS external actuary provided an updated outlook on future trends in longevity improvements, salary expectations and retirement patterns. As a result, the SC has decided it will consider changing the contribution rates of the Supplemental Plan, (see Current Year Cycle).
Beyond managing the financial health of the Plans, there are other reasons to change and evolve benefits, such as pension legislation developments or minor administrative matters. In 2015, the SC received related input from stakeholders and is still considering 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.
Click here for more about the SC's Funding Management Strategy and the related decision-making process.