Proposed Regulations Impacting OMERS

A new governance model for OMERS is taking shape, and MEPCO and AMO have been working to ensure the municipal voice remains strong through the transition.

The provincial government has proposed regulations that establish the initial composition of the new OMERS Sponsors Council, set requirements for its by-laws and establish a framework for appointments to the OMERS Administration Corporation (AC) Board.

This transition has been underway since the OMERS Sponsors Corporation moved into caretaker mode on March 31. Since then, there has not been a fully functioning Sponsors body representing the interests of OMERS employers. MEPCO continues to believe that having a functioning Sponsors Council is important to ensuring employers have appropriate oversight of the plan, particularly as OMERS operates in an evolving economic environment.

Over the past several months, MEPCO and AMO have worked closely with other OMERS Sponsors and OMERS AC staff to provide advice to the provincial government on the regulations and the by-laws needed to establish the new Council.

A strong municipal voice remains in place

The proposed regulations preserve several important elements of OMERS governance that are critical to municipal employers. In particular:

• Sponsors retain an important role in decisions affecting the plan, including plan design, contribution rates and benefits, as well as oversight of the OMERS AC Board.
• AMO retains a leadership role on the new Sponsors Council as the official representative of municipal employers. AMO is the only Sponsor with two seats and four votes on the Council, helping ensure that the interests and perspectives of municipal employers are represented in plan governance.

These outcomes are significant for municipalities. Decisions about plan design, contribution rates and benefits can have direct implications for municipal employers and their employees. Maintaining a strong employer voice helps ensure those decisions continue to reflect the interests of the municipalities that participate in OMERS.

The proposed governance model will also introduce non-voting observer organizations, including Canadian Union of Public Employees (CUPE) Local 79 (rotating seat), Metrolinx, Amalgamated Transit Union (ATU), Association of Municipal Managers, Clerks and Treasurers of Ontario (AMCTO), and The City of Toronto Administrative, Professional, Supervisory Association (COTAPSA).

New transparency measures will also provide employer and employee groups with additional information about Sponsors Council business and certain plan changes.

What MEPCO is watching

OMERS reported a 4.8% net investment return at mid-year. At the same time, the plan is operating in a changing environment, including geopolitical uncertainty, tariffs and wage pressures.

MEPCO is also monitoring wage growth and its potential implications for the plan's liabilities and overall funding position. MEPCO remains focused on better understanding the risks facing the plan and what they could mean for municipal employers as economic conditions evolve.

A fully functioning Sponsors Council will be an important part of ensuring employers have a strong voice as these issues are considered.
MEPCO and AMO will continue to monitor the governance transition and keep municipalities informed about developments that could affect the plan and municipal employers.

The proposed regulations are available below. The government is accepting written feedback until October 23, 2026.

• Minimum Requirements for the Initial By-Laws of the OMERS Sponsors Council
• Initial Composition of the OMERS Sponsors Council
• Appointments Framework for the OMERS Administration Corporation Board
• Consequential OMERS Amendments to the Municipal Act, 2001 

New OMERS Contribution Rates Start January 1, 2027 

Starting on January 1, 2027, OMERS contribution rates are changing. These changes were approved by the Sponsors Corporation in 2024 to more equitably  distribute contributions across member groups. This decision was based on an actuarial study that showed lower-paid members were contributing relatively more  to the plan compared to higher-paid members. 

The OMERS Administrative Corporation has created an information handout providing more information on the change.

MEPCO Board in Action – AMO Conference

The Emergency Services Steering Committee sponsored a well-attended breakfast at the 2026 AMO Conference in Ottawa, bringing together municipal leaders and pension stakeholders to discuss recent changes to OMERS governance. The event featured a panel of experts who provided insights into the reform process and its implications for municipalities.

MEPCO Board Member Janice Baker participated on behalf of MEPCO to represent the municipal perspective on the governance changes, and what municipalities can expect when the transition to the new governance model is completed.