On August 31, 2016, the OMERS Sponsors Corporation (SC) approved two amendments to the OMERS Pension Plans to reflect plan changes agreed to in June. In addition, other technical amendments were made, which do not impact Plan members.
New AVC Income Option for Members Past Age 71
In response to member and stakeholder requests, the Sponsors Corporation Board approved a Plan amendment to change the Additional Voluntary Contributions (AVC) program. The amendment allows members to keep non-locked-in funds in an AVC account after the year they turn age 71. This part of the AVC program is called the “AVC Income Option”. For more details on the AVC Income Option, visit omers.com.
The SC approved changes to the contribution rates of the Supplemental Plan effective January 1, 2017. Although there are currently no members in the Supplemental Plan, contribution rates must be adjusted periodically to reflect our current expectations about the future.
In addition, effective January 1, 2017 the “rebound costs” in the Primary Plan for the 2.33% accrual rate supplemental benefit will increase to 0.3% from 0.2% and 0.25% respectively for NRA 60 and NRA 65. The rebound costs in the Primary Plan only apply to members of the Primary Plan who are participating in the Supplemental Plan with a 2.33% accrual rate. Rebound costs are meant to ensure that the Primary Plan is not negatively impacted by participation in the Supplemental Plan.
Both the introduction of the AVC Income Option and the changes to the Supplemental Plan contribution rates were made through the SC’s annual process for Plan changes. Click here for more information about 2016 Plan change decisions.