The Canadian Institute of Actuaries released a draft report in July 2013 indicating that Canadians are living longer, particularly those working in the public sector and at higher income levels. The final report on Canadian pensioner mortality is expected to be released later in 2013 or early 2014.
The fact that Canadians are living longer will increase the cost of paying future pensions and it could impact OMERS, says Jennifer Brown, Chief Pension Officer.
OMERS conducts a detailed actuarial valuation every year to assess the long-term financial health of the OMERS pension plan by comparing the value of assets to the estimated cost of pension obligations to members. To estimate future pension costs, assumptions are made about a number of demographic factors, including mortality and life expectancy.
"We continually monitor and assess factors affecting future pension costs and we have been aware of potential future changes to the mortality assumptions." says Jennifer, adding that OMERS is studying the draft report to determine if adjustments to its mortality assumptions are required and how and when the resulting changes would affect the funded status of the OMERS Plan.