June 25, 2014

 

Specified Plan Changes

This meeting concluded the current year’s consideration of Specified Plan Changes.  Decisions about the eight SPCs were made after several months of review and analysis of available information, including stakeholder views and suggestions.  The OMERS Sponsors Corporation (SC) approved the proposed change in contribution rates.  Six of the remaining SPC proposals did not receive the necessary 2/3s support of the SC Board and failed, and the NRA 60 – Police Civilians proposal was withdrawn by its proponent.  None of the SPC proposals were referred to arbitration.

The newly approved contribution rates fully reflect the new methodology and result in a 0.1% reduction in the (Normal Retirement Age) NRA 60 contribution rates with no change to the NRA 65 contribution rates. 

In 2012 the SC approved a methodology for allocating the overall contributions into the four rates (for each NRA and earnings above/below the CPP earnings limit).  As part of the approach, the SC approved interim contribution rates with a commitment to fully implement the new methodology by January 1, 2015.

The contribution rates effective January 1, 2015 are as follows:

 

    NRA 60   

    NRA 65    

Below CPP earnings limit        

  9.2% 

 9.0%

Above CPP earnings limit 

 15.8%

 14.6%

(More information about decisions)  

 

Governance - Strategic Planning

The SC reviewed a number of issues related to plan sustainability and will continue to consider and discuss this issue at its August strategic planning session.

Posted June 26, 2014