Plan Risk Assessment
What is plan risk assessment
OMERS Sponsors Corporation (SC) is responsible for determining benefit levels and setting contribution rates for the OMERS Pension Plans, collectively “the Plans”. Our objective is to ensure that the Plans remain sustainable, affordable and meaningful for current and future members. Plan risk assessment is part of our ongoing responsibility to review the risks and opportunities facing the Plans and to evaluate what action, if any, needs to be taken to improve their long-term resiliency.
The SC has not yet made a decision as to whether changes to the Plans are necessary at the current time. The plan risk assessment may well conclude that no plan changes are necessary. If a decision is ever made to amend the Plans, sponsors, members and employers will be given notice well in advance of any change.
As the SC has previously communicated in December 2022, there will be no increases to contributions or changes to benefits through 2025. In addition, the SC has committed to not invoking Shared Risk Indexing (SRI) in 2024 or 2025.
Why is the SC conducting plan risk assessment?
As the Plans continue to mature, it is important to regularly assess our resiliency to future risk and uncertainty. In doing so, the SC reviews funded status of the Plans through a long-term lens over a range of possible outcomes and assesses the Plans’ ability to manage through these outcomes. More information on funding considerations can be found here.
Key milestones in 2023
May / June
OMERS is meeting with Sponsor and Stakeholder organizations in the spring to get their perspectives regarding plan risk assessment.
September
In September, the SC Board intends to determine whether changes are needed to build additional resilience in the Plans.
If changes are deemed necessary, the SC Board will identify which changes they intend to consider over the fall.
The SC Board’s direction (i.e., changes or no changes) will be shared directly with members, employers, sponsors and stakeholders.
December
If the SC Board proposes to make changes, members, employers, sponsors and stakeholders will have the opportunity to provide their perspectives in the fall.
The SC Board expects to make a final decision on the outcome of plan risk assessment in December 2023. A change to the Plans requires approval from two-thirds (2/3) of the SC Board.
Who to contact
As we progress through our current plan risk assessment, and work towards a decision in 2023, OMERS will update this page to provide relevant and up to date information. If you have any questions pertaining to this review or would like to provide us with feedback, you can contact OMERS Sponsors Corporation here.