Decision-Making Process

Changes made to the OMERS Pension Plans must be approved by the SC Board and are not made automatically based on the Funding Management Strategy.

Early in a given calendar year the SC receives the valuation results and projections which provide the current and projected funded status. This information helps the SC define the management zone which is relevant for the particular calendar year. Having made that determination the SC will proceed with decision-making as follows:

Steps Process

Step 1

(March/April)

By early April the SC will communicate:
  • The funded status and relevant management zone for the year
  • Whether or not actions need to be taken
  • If action needs to be taken - what kind of action
If it is determined that no actions are required, then no changes will be made for funding management purposes – although there may be other reasons to consider plan changes.

Step 2

(May)

By the end of May, the SC will communicate and provide the following information for any type of plan change being considered:
  1. Funding Management Strategy Proposed Changes (assuming action is required/desired)
    • Information about each option being considered
    • The impact of each option and how it achieves the relevant objectives of the Funding Management Strategy
  2. Other Proposed Changes (assuming any are under consideration)
    • Information about each change being considered
    • The rationale and objective behind each change o Information on the impact of each option
These changes would have different purposes – it could be to address a change in pension legislation, an administrative matter, etc.

Step 3 

(June)

At its June meeting the SC will make decisions about the changes. Note that the SC may refine the changes if it is appropriate.