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Decision-Making Process

Changes made to the OMERS Pension Plans must be approved by the SC Board.

Early in a given calendar year the SC receives the valuation results and projections which provide the current and projected funded status. This information helps the SC define the management zone which is relevant for the particular calendar year. Having made that determination the SC will proceed with decision-making as follows:

Steps

Process

Step 1

(March/April)

By early April the SC will communicate:

  • The funded status and relevant management zone for the year

  • Whether or not actions need to be taken

  • If action needs to be taken - what kind of action

If it is determined that no actions are required, then no changes will be made for funding management purposes – although there may be other reasons to consider plan changes.

Step 2

(May)

By the end of May, the SC will communicate and provide the following information for any type of plan change being considered:

  1. Annual Funding Change Considerations (assuming action is required/desired)
  • Information about each option being considered

  • The impact of each option and how it enhances the sustainability, affordability and meaningfulness of the plan.

  1. Other Proposed Changes (assuming any are under consideration)
  • Information about each change being considered

  • The rationale and objective behind each change o Information on the impact of each option

These changes would have different purposes – it could be to address a change in pension legislation, an administrative matter, etc.

Step 3

(June)

At its June meeting the SC will make decisions about the changes. Note that the SC may refine the changes if it is appropriate.

Current Year Cycle

2020 Plan Review

Following the 2020 Plan Review process, on June 24, 2020, the OMERS Sponsors Corporation Board (SC Board) approved five amendments to the OMERS Primary Pension Plan (Plan).

Every year, the SC Board reviews the health and viability of the Plan to ensure it remains sustainable, affordable and meaningful for the OMERS community. Based on the recent review, the SC Board approved the following amendments. The first three amendments were considered because of the exceptional circumstances presented by the COVID-19 pandemic and are effective immediately. The final two amendments were considered as a part of the annual Plan review and are not effective until January 1, 2023:

  • extending leave purchase deadlines;

  • reducing or eliminating the 36-month employment requirement for purchases of periods of reduced pay;

  • permitting temporary layoffs as purchasable service;

  • non-full-time expansion; and

  • Shared Risk Indexing.

Learn more