September 19, 2014

 

Strategic Planning

The OMERS Sponsors Corporation (SC) and the OMERS Administration Corporation (OAC) Boards participated in the third annual joint strategic planning session for two days prior to the SC Board meeting, to address issues related to contribution rate allocations and membership growth, as a further step towards creating a joint strategic plan.  The two Boards are scheduled to meet again in November to further their work on this important initiative.

 

SPDOS/SPC Process & Communications

As noted last month, the SC approved, in principle, a revised Statement of Plan Design Objectives and Strategy (SPDOS). Key components include a cap on contribution rates, a revised distribution between contributions and benefit changes should an increase in contributions be required, as well as ensuring the plan is sufficiently funded before benefits are improved or contributions reduced.

The SC is also strengthening the relationship and linkage between the objectives and strategy articulated in SPDOS and the process by which plan change decisions are made (the SPC process).  Funding decisions will be driven by SPDOS (objectives and strategy) and implemented through a revised SPC process.

The SC is continuing to work through implementation-related issues.

 

Supplemental Plan Valuation Filing

Although there are no current members of the Supplemental Plan, the Board agreed that the 2013 Valuation of the Supplemental Plan should be filed with the regulators, as has been past practice.

 

OAC Board Appointments

One of the most important responsibilities of the SC is the appointment of directors to the OAC Board.  In 2013 a new nomination and appointment process and philosophy were adopted, designed to create a higher capacity OAC Board with a range of important skill sets and competencies.  A related transition plan was agreed to, with the first phase completed by January 1, 2014.

The recruitment and nomination process began again in February of this year for five sponsor organizations which have term expirations on December 31.  The affected sponsor organizations were encouraged to submit up to three candidates for consideration. In late August of this year, the Corporate Governance Committee (CGC) conducted interviews with nine individuals that were nominated by sponsor organizations, with the participation of the OAC Board Chair, George Cooke.  Following the interviews, the CGC continued its assessment of current and complementary competencies of the entire OAC Board before providing its recommendations to the SC for approval.

Two new directors will join the OAC in January:  David Tsubouchi representing the Retiree Group and Cliff Inskip representing the Ontario Catholic School Trustees' Association (jointly nominated by them and the Ontario Public School Boards' Association, as per By-Law #13).  Three current OAC directors were reappointed:  Monty Baker, Gene Swimmer and John Weatherup (representing Ontario Association of Police Services Board, Police Association of Ontario and CUPE Ontario, respectively). All terms are effective January 1, 2015 for periods of two, three or four years.

Revised October 29, 2014