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.
Earlier this year the SC announced that it would be considering two changes to the OMERS Pension Plans. At its June Board meeting the SC made related decisions:
- The SC agreed in principle to change the Additional Voluntary Contributions (AVC) program of the Primary Plan to allow members to retain their non-locked-in AVC funds in the Primary Plan past the age of 71. Currently, plan members are required to withdraw any AVC funds from the Primary Plan once they turn age 71. The change will allow them to retain non-locked-in funds in the Primary Plan, subject to the minimum withdrawal requirements of the Income Tax Act.
The new option will be rolled out in the coming months.
- The SC agreed to change the contribution rates of the Supplemental Plan effective January 1, 2017. Although there are currently no members in the Supplemental Plan, it is necessary to ensure the contribution rates reflect our current expectations about the future.
The contribution rates are noted as follows:
In addition, effective January 1, 2017 the “rebound costs” in the Primary Plan for the 2.33% accrual rate supplemental benefit will increase to 0.3% from 0.2% and 0.25% respectively for NRA 60 and NRA 65. The rebound costs in the Primary Plan only apply to members of the Primary Plan who are participating in the Supplemental Plan with a 2.33% accrual rate. Rebound costs are meant to ensure that the Primary Plan is not negatively impacted by participation in the Supplemental Plan.
As of December 31, 2015 there are no participants in the Supplemental Plan.
Click here for more about the Supplemental Plan.