Join teletown hall on OMERS pension plan changes
Publication DateMonday, October 22, 2018 - 10:15am
We strongly encourage all OPSEU members who currently belong to the OMERS pension plan to join President Warren (Smokey) Thomas, OPSEU Pension Liaison Committee members Len Elliott and Gareth Jones, and OPSEU staff for a teletown hall to discuss proposed changes to the plan and have your questions answered.
Tuesday, October 30 at 2 p.m. and 8 p.m.
How do I connect?
You will be called at 2 p.m. and 8 p.m. (if your updated number is in our database). If you just remain on the line, this will connect you wth the teletown hall.
In 2017, OMERS performed a “health check” of its pension plan by reviewing its vitality and long-term viability and sustainability.
In November 2017, OMERS’ plan sponsors were presented with 12 potential options for review or change. These were brought to the Sponsors Corporation board (SC).
Some of these changes were enhancements, while others were concessions. The full list can be found in the OMERS presentation at 10:06.
In June 2018, the SC was presented with six items for potential change, which had been consolidated from the original 12 options.
OPSEU and other sponsors have been engaging with the SC and OMERS’ Sponsors Corporation executive team, asking that they reconsider voting to implement any changes without further consultation.
Despite our request, the SC board will vote next month on whether to implement any or all of these plan changes.
Proposed changes include:
- replacing guaranteed indexing (inflation protection)with conditional indexation
- integrating the pension formula with the year’s additional maximum pensionable earnings (YAMPE)
- changes to normal and early retirement
- removing the 35-year credited service cap
- mandatory participation for non-full-time employees (optional for low-salary employees)
- allow for Paramedics to negotiate NRA 60
In 2017, OMERS earned an 11.5 per cent return on investment and had a 94 per cent funded ratio at the end of last year.
OPSEU sees no immediate financial need to act at this time. Further, the time frame for identifying and communicating these change items was too short. They should not have been moved forward to a vote so quickly and without appropriate sponsor consultation.
Throughout this process, OPSEU’s Pension Liaison Committee leadership and staff have been, and remain, in constant dialogue with our Sponsors Corporation board member, other unions’ SC board reps and top leadership.
OPSEU has been, and remains, strongly opposed to any changes to the plan that would remove or reduce OMERS’ promised retirement benefits. We aim to defeat any proposed concessions.