March 18, 2014

 

Plan Changes

The Board received further technical information related to the annual Actuarial Valuation for the Primary Plan and RCA. Various scenarios and analyses were discussed as they relate to the projected funded status of the OMERS Pension Plans.  This information assists the SC in managing the long-term health and sustainability of the Plan.

For the RCA, the annual update of the allocation threshold was presented and discussed.

(The RCA pays benefits over and above the maximum pension payable under the Primary Plan and it is currently funded on a modified pay-as-you-go basis to minimize the tax inefficiencies of such plans. The earnings level at which contributions are made to either the Primary Plan or the RCA [the ‘allocation threshold’] will vary each year based on the actuary's projections, within a certain corridor, to ensure that the RCA maintains a fund of sufficient size that it would not be expected to be fully depleted for at least 20 years.) 

 

Specified Plan Change (SPC) Process Amendment

SC By-Law #12 (SPC Process & Protocol) sets out the timelines with respect to tabling and decision-making with regard to SPCs.  The SC passed a resolution to implement the change agreed to in January regarding the postponing of decisions on SPC proposals until June for this year’s (2014) cycle.

 

Governance

Budget & Expense Management

In accordance with legislation, SC expenses are reimbursed by the OAC on a regular basis for ‘expenses legitimately payable by the Plan’.  Initial start-up funds and any items not covered by the Plan have historically been covered by a funding agreement with the Ministry of Municipal Affairs and Housing (MMAH).  The agreement, first entered into in 2006, was revised in 2008 when an alternate funding mechanism was developed (i.e. a by-law to allow for a levy on Plan members and employers).  The agreement with MMAH expires at the end of March, 2014, and the SC has authorized alternative, interim funding until such time as it is determined how future funding will be secured (i.e. extension of funding agreement with MMAH, implementation of the levy, etc.)