2017 Annual Reporting

2017 Annual Report

We are OMERS,

the defined benefit pension plan for almost half a million active, deferred and retired employees of nearly 1,000 municipalities, school boards, libraries, police and fire departments, and other local agencies in
communities across Ontario.
The interests of OMERS members, employers, sponsors and other stakeholders are represented by two corporations with separate and distinct mandates:

OMERS Sponsors Corporation (SC) provides strategic and risk oversight and decision-making with regard to designing pension benefits, setting contribution levels, and determining the composition of the two OMERS Boards.

OMERS Administration Corporation (OAC) provides strategic, risk and operational management in serving Plan members and employers, collecting contributions and paying pensions, and investing the Plan funds.

This bicameral (two-part) structure provides for the effective operation of OMERS as a whole. Specifically, it helps to ensure broad input into decision-making by considering the interests of a large number of stakeholders – and focused expertise in key areas, including Plan design, member and employer service,
and investments.

The two corporations and their Boards work together, closely and collaboratively, to meet a singular goal: the delivery of secure, sustainable and affordable pension benefits that address the needs of both members and employers.

2017 Highlights

Picture of Michael Latimer

Michael Latimer

President and CEO, OMERS Administration Corporation

Our 2020 Strategy continues to serve us well as a roadmap, leading us to another year of strong results. Looking ahead, we are developing a 2030 Strategy that will prepare us for the challenges we anticipate.
Picture of Paul Harrietha

Paul Harrietha

Chief Executive Officer, OMERS Sponsors Corporation

The conversations we are having now will set the course for the next 20, 50 and even 100 years for our Plan. It’s all about preserving the pension promise for generations to come.
Picture of George Cooke

George Cooke

Board Chair, OMERS Administration Corporation

We are committed to the long-term sustainability of our defined benefit pension plan, recognizing not only the value it creates with retirement security for our members, but also the broad economic and social value for our communities.
Picture of Frank Ramagnano and Marianne Love

Frank Ramagnano and Marianne Love

Board Co-Chairs, OMERS Sponsors Corporation

We continued to strengthen our outreach in 2017 – and consider a wide range of perspectives – as we take steps to ensure the OMERS Plan remains sustainable and meaningful over the long term.

OMERS made strong progress in 2017 toward our 2020 Strategy

In 2017:
  • Our funded ratio increased to 94%, reflecting improvement for the fifth consecutive year
  • Our investment return was 11.5%, exceeding our benchmark of 7.3% and our 2016 investment return of 10.3%
  • Member satisfaction remained high at 92%
  • We made progress on our employer satisfaction, improving to 85%, from 80% in 2016
  • Member account balances in the Additional Voluntary Contributions program grew to
    $817 million
Since the first year of our 2020 Strategy in 2015:
  • We achieved our objective of reducing the real discount rate, used to calculate our future pension obligations, by 25 basis points, three years ahead of our 2020 Strategy target
  • Our investment teams have generated $7.6 billion of net returns above our discount rate
  • Net assets have grown by $18 billion to $95 billion
We are pleased with these results and yet are mindful of the risks that may lie ahead. Accordingly, in 2017, the Sponsors Corporation launched a Comprehensive Plan Review of the design of the OMERS Pension Plans to ensure OMERS is well-positioned to deliver secure and sustainable defined benefit pensions that meet the needs of members and employers at a stable and predictable cost.

Contribution rates remain unchanged for 2018.

Progress on 2020 Strategy

  • Funded

    94%

    Funded

  • Member Satisfaction

    92%

    Member Satisfaction

  • Net Rate of Return

    11.5%

    Net Rate of Return

  • Members

    482,000

    Members

  • Billion in Net Assets

    $95

    Billion in Net Assets

  • Billion in Pension Payments
    Members

    $4.0

    Billion in Pension Payments

Our 2020 Strategy: Driving Plan Sustainability

The 2020 Strategy reflects our vision to make OMERS a leading model for defined benefit pension plan sustainability.

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