The OAC and SC developed a joint Strategy in 2015, which sets out a five-year roadmap to advance OMERS toward our vision of being a leading model for defined benefit pension plan sustainability.
Our Strategy recognizes that the Plan is maturing. By the end of 2018, the ratio of active to retired members was less than 2:1. As the ratio of contributing members continues to decline, defined benefit payments exceed defined benefit contributions flowing into the Plan. With fewer contributing members to make up for potential investment losses, mature plans are more vulnerable to economic downturns.
In addition to Plan maturity, other broad challenges include:
- longer life expectancy
- changing demographic and workplace trends
- an increasingly uncertain economic environment creating pressure on investment returns
- technology and other developments that could impact jobs in the Ontario municipal sector
- legislative developments, including CPP enhancements that begin to come into effect in 2019
Our 2020 Strategy begins to address these challenges and other headwinds through four pillars of focus: