The “funded ratio” is the ratio of net investment assets to
long-term pension obligations. It is an indicator of the long-term financial health of the Plan. It can be
calculated on a “smoothed” or “fair value” basis:
“Fair value” uses year-end values of OMERS assets, without any adjustments. Because our
investment returns vary each year, this calculation results in a funded ratio that may also vary year over year.
“Smoothed” evens out the variations in annual returns over a five-year period. In this way,
contribution rates and benefits are set using a more stable, long-term view of investment performance.
The “discount rate” is the interest rate used to estimate the dollar value of OMERS long-term
pension obligations. It includes two components: a “real” rate before inflation and net of a margin for risk,
and an inflation estimate. Setting the discount rate is key to managing the Plan and addressing risk. Lowering
it increases the dollar value of our pension obligations and therefore decreases our funded ratio but makes the
Plan more resilient. Lowering the discount rate also ensures that contribution rates are set to properly fund
“Jointly sponsored pension plans” are those in which decision-making and contributions are
shared by both members and employers.
For employers, we launched our Employer Monthly newsletter – a collection of timely,
plan-related content. We provided personalized training, aimed at enhancing employers' understanding of Plan
administration. We listened to feedback on how to improve our employer web portal, which will be a focus area in
And we implemented a new method for measuring employer satisfaction, providing us more meaningful
information about the employer experience.
We achieved 92% employer satisfaction in 2019.