It is the responsibility of the OMERS Sponsors Corporation (SC) to decide when it’s appropriate to change benefits, adjust contribution rates or some combination of both. The level of benefits and contribution rates are the two levers which the SC has available to it for managing the financial health of the OMERS Pension Plans. The SC adopted a Funding Management Strategy in October, 2014, which outlines how benefits and contributions will be modified as the Primary Plan cycles through periods of funding deficit and surplus.
There are other reasons to change and evolve benefits, such as pension legislation, administration matters, etcetera. While OMERS monitors these things very closely, our stakeholders often have a front-line view on administrative and other issues and bring them to our attention.
The decision-making process for dealing with both of these types of change is noted below.
The Funding Management Strategy provides the framework for how and when benefits and/or contribution rates will be changed in order to manage the plans' financial health.
There are other reasons that benefits or plan terms might need to change, such as changes in pension legislation or when administration matters arise.
Decisions made through an annual Decision-Making Process
Any Stakeholder wishing to submit a request for a plan change can do so, bearing in mind that there is a Funding Management Strategy that drives plan change decisions that impact plan funding.