AMO Submission on Proposed OMERS Governance Regulations
OMERS helps municipalities attract and retain the skilled employees needed to deliver essential public services. But pension contributions are also a significant ongoing cost for municipal employers, funded in part by property taxpayers. Strong governance is essential to keeping the plan affordable, sustainable and well managed over the long term.
The Province is consulting on proposed regulations to implement a new governance framework for OMERS. As one of the plan’s largest sponsors, AMO has submitted feedback focused on protecting municipal representation, strengthening sponsor oversight and avoiding unnecessary additional costs for municipalities.
What AMO is supporting
AMO recognizes important progress in the proposals, including preserving its existing representation on the new Sponsors Council, with two representatives and four votes, and maintaining the Council’s authority over appointments to the OMERS Administration Corporation (AC) Board. AMO also supports the decision not to allow the AC Board to determine its own compensation.
Where further changes are needed
AMO is recommending several refinements to ensure the new framework works effectively for municipal employers and OMERS members:
- Protect municipal representation: Confirm that AMO will retain its two existing appointments to the AC Board. Municipal employers and their employees account for approximately 40 per cent of total contributions to OMERS.
- Avoid additional costs: Ensure independent professional advice, appropriate insurance and indemnification for Sponsors Council members are funded through the plan, rather than through additional levies on municipalities and plan members.
- Support effective decision-making: Allow confidential, in-camera discussions when sensitive issues require them and establish clear approval requirements for public communications issued in the Council’s name.
- Maintain sponsor-led governance: Protect the Sponsors Council’s authority to appoint and reappoint the independent AC Board Chair, implement the new Council promptly, and consider reducing the Province’s ongoing regulatory role once the transition is complete.
What this means for municipalities
Municipalities have a significant financial stake in OMERS and need a meaningful voice in decisions affecting the plan’s long-term affordability and sustainability. Strong sponsor oversight supports both municipal employers and the retirement security of their employees.
Given the significance of these changes, AMO encourages municipalities and other interested stakeholders to review our submission and consider providing their own feedback to the Province. The submission outlines key issues and recommendations that may help municipalities prepare their own submissions.
Read AMO’s full submission.