Sponsors Corporation Passes Five Amendments in Recent Vote
Following the 2020 Plan Review process, on June 24, 2020, the OMERS Sponsors Corporation Board (SC Board) approved five amendments to the OMERS Primary Pension Plan (Plan).
“The OMERS Sponsors Corporation Board of Directors is made up of representatives of sponsor organizations. The SC Board is charged with the annual responsibility of reviewing Plan design, and making changes to ensure the Plan remains sustainable, affordable and meaningful for the OMERS community long into the future,” said Michael Rolland, CEO, OMERS Sponsors Corporation.
“The changes announced today, including ones that will support our members who have been impacted by the COVID pandemic, are important to fulfilling that responsibility. On behalf of the SC Board, I would like to thank the sponsoring organizations, stakeholders, employers and members who provided important input in this review process.”
Based on the recent review, the SC Board approved the following amendments -- the first three were considered because of the exceptional circumstances presented by the COVID-19 pandemic and are effective immediately. The final two amendments were part of the annual Plan review and are not effective until January 1, 2023.
Extending leave purchase deadlines
Extends the deadline to complete a leave purchase by one year for members who return from a leave of absence in 2020 or 2021 (i.e., extending to December 31, 2022, or December 31, 2023, depending on the return date). This change is effective immediately and will be implemented over the coming weeks.
Reducing or eliminating the 36-month employment requirement for purchases of periods of reduced pay
Reduces or eliminates the 36-month employment requirement for purchases of periods of reduced pay, subject to changes to the Income Tax Regulations. This change is effective immediately but will only be implemented if and when the employment requirement under the Income Tax Regulations is amended.
Permitting temporary layoffs as purchasable service
Allows members to purchase credited service for periods of absence due to temporary layoff that were initiated in 2020 or 2021. The service can be purchased at two times contributions (member only). This change is effective immediately and will be implemented over the coming weeks.
Non-full-time expansion
Removes the current eligibility requirement for non-full-time employees to join the Plan so that all non-full-time employees may elect to join the Plan at any time. Enrolment in the Plan would take effect on the first day of the month after the employee’s election is received and would remain in place as long as the member continues working with their current employer.
This change is effective January 1, 2023, which means that until then, the current eligibility requirement continues to apply. More information will be available closer to the implementation date.
Shared Risk Indexing
Provides the option for the SC Board, based on its annual assessment of the Plan’s health and viability, to reduce future inflation increases on benefits earned after December 31, 2022.
This change is effective January 1, 2023 and does not affect benefits earned before that date. This means that when you retire, the benefits earned on or before December 31, 2022 will be granted full indexation. Benefits earned on or after January 1, 2023 will be subject to Shared Risk Indexing, meaning that the level of indexation will depend on the SC Board’s annual assessment of the financial health of the Plan.
More information will be available closer to the implementation date.
In addition to the amendments listed above, a minor housekeeping change to the Plan was made to align section references. This change does not impact Plan members.
There will be additional communication with respect to the administration of the first three amendments, which are effective immediately, in the coming weeks. Further communication with respect to the administration of the final two amendments, which are not effective until January 1, 2023, will be developed over the coming months well in advance of the implementation date.