July 3, 2018

At its June 22, 2018 meeting, the AMO Board adopted the attached resolution, calling on all OMERS Plan sponsors to support and participate in the current OMERS Sponsors Corporation Comprehensive Plan Review (CPR).  The involvement and cooperation of all sponsors in the Review is essential to ensure Plan sustainability, affordability for employers and employees, and meaningful benefits for current and future contributors and Plan members.   
 
The CPR is the first fundamental review of the OMERS Plan in 50 years.  A lot has changed since the inception of the Plan, and anticipating and actively managing these developments is a pension stewardship best practice. Every municipal employer and employee should welcome the review. AMO supports the review as the responsible thing to do.  

Potential Plan design options are based on an assessment of key economic and Plan demographic developments that will impact the long-term viability of OMERS. These developments are affecting all comparable, broader public sector (BPS) Ontario pension plans. In fact, the Teachers’, HOOPP and CAAT plans have already made changes in order to ensure they can continue to provide meaningful benefits to their members. It’s time for OMERS Plan sponsors to follow the lead of these plans to implement similar sustainability measures


Pat Vanini
President MEPCO
 

Whereas OMERS is a Jointly Sponsored Pension Plan with equal representation of employer and employee groups on the Sponsors Corporation Board; and

Whereas all OMERS Sponsors have a responsibility to ensure that the OMERS Plan remains sustainable, meaningful and affordable for current and future contributors and plan members; and

Whereas Plan demographics, member longevity, work practices, social norms and economic conditions have evolved since OMERS was established in the 1960s, impacting Plan funding, liabilities and actuarial assumptions; and

Whereas the OMERS recent strong annual investment performance alone cannot not ensure that the Plan will be fully funded by 2025 or in the future; and

Whereas comparable Ontario public sector pension plans have already made changes to return to full plan finding or surplus to continue to provide meaningful benefits; and

Whereas the OMERS Sponsors Corporation is focused on the equitable treatment of members within and across generations; and

Whereas the OMERS Sponsors Corporation has duly initiated a Comprehensive Plan Review that will consider options for prospective and/or temporary changes, that together with the OMERS Funding Management Strategy, will enable future Plan benefits to be sustained;  

Whereas the Sponsors Corporation Board is assessing the viability and impacts of specific Plan design changes as basis for consultation with Plan stakeholders to inform future decision-making;

Therefore, be it resolved that AMO calls on all Plan Sponsors to support and participate constructively in the Comprehensive Plan Review.