July 13, 2010

Specified Plan Changes

Contribution rates are currently established through four categories, above and below the annual maximum pensionable earnings for NRA 60 and 65 members; there was considerable discussion about the most equitable way of allocating the 2011-13 increases, and a decision to authorize a new contribution rate study (to be completed in 2011), which might indicate a future change in the categories. A decision on the specific allocation was deferred to August, pending further review, with agreement on the overall distribution for communication to plan members and employers.

OMERS Investment Management (OIM)

The CEO of OIM, Wendy Forsythe, presented updated information on the OIM initial product offerings and business plan. The SC requested further information on risk and governance matters and deferred making decisions pending review of an external business analysis.

Growth in Membership

The OAC Pension Group requested SC support for recommendations to amend the OMERS Act to allow for future potential growth in plan membership. Discussion followed about pension reform and the Expert Commission recommendations, with reference to how other multi employer pension plans are responding. Members deferred decisions on the matter to allow for additional time to review the concept with sponsors.

Board Administration

Terms of office for eight of the SC Members had concluded on June 30th; five were reappointed by their sponsoring organizations, and three new Members joined the SC effective July 1st, reflecting the ‘alternating seats’ and other composition guidelines set out in By-Law #4 PDF [84.5 KB]. The outgoing SC Members, Brian Cain, Ann Dembinski and Glen Mills, had each made significant contributions to the SC from its inception in 2006. Incoming Members Paul Bailey, Mark Ferguson and Wayne McNally were welcomed by their colleagues and agreed to assume the committee seats left vacant by their predecessors until December 31st of this year. As noted in the February summary, all current SC Member terms will run to December 31st, either in 2013 or in 2012 (for the six who were reappointed on July 1st of 2009.)

Three joint educational sessions with the OAC board were confirmed for the balance of 2010, and the first SC governance advisory program was approved for completion in the coming months.