Reviewing The Plan
The OMERS Defined Benefit Pension Plan is our promise to our members – today and into the future. As part of this responsibility, the OMERS Sponsors Corporation (SC) Board, half of whom are appointed by employer groups and half of whom are appointed by unions and associations, reviews the health and viability of the Plan every year to ensure it remains sustainable, affordable and meaningful for the OMERS Community.
The SC keeps a close eye on the OMERS Plans to see if changes are either required or desirable due to its assessment of the long-term health of the Plan, changes in the pension environment or a desire to evolve the plan. In that case, the SC will generally, at a minimum, communicate any proposed plan change that is being considered by the SC Boardthrough its website at least 21 days before any decisions are made.
With a focus on leading governance practices and disciplined decision-making, we are committed to supporting the financial health, relevance and long-term viability of the OMERS Plans. Proposed changes are examined carefully, with due consideration to the health of the plan. The SC also considers the interests of the sponsors, stakeholders, employers and members – current and future when making decisions.
The SC continues to welcome ideas and input from stakeholders on ways to make our pension Plan better, but please be aware that on June 23, 2021, the SC suspended regular the OMERS Plan change process outlined in By-Law No.12 pending a review of this by-law. The SC will be consulting with sponsors and stakeholders in 2023/2024 on the proposed changes to the by-law. While the review is underway, individual stakeholder requests for plan changes submitted to the SC this and next year will not be considered until a new By-law No. 12 is implemented which will be the earlier of a new By-Law No. 12 and December 31, 2024.
As part of the role outlined above, SC management is currently engaged in plan risk assessment conversations with sponsors and stakeholders to discuss the long-term health of the Plan. These are important discussions, and the SC is taking the time to ensure that it is thoughtful and thorough. The insights from these sessions will help to inform reporting to the SC Board, with an expectation the Board be in a position to consider any recommended actions before the end of 2023. For more information, please refer to Plan risk assessment.
The SC Board has made a decision that there will be no changes to contributions or benefits in 2023, 2024 or 2025. In addition, the annual inflation adjustment to pensions in pay will not be impacted by Shared Risk Indexing (SRI) in 2024 and 2025.