The SC and the OMERS Administration Corporation (OAC) were established, pursuant to the Ontario Municipal Employees Retirement System Act, 2006 (the OMERS Act). Under the OMERS Act, these two independent corporations share responsibility for the governance of the OMERS pension plans; OMERS Primary Pension Plan, OMERS Supplemental Pension Plan for Police, Firefighters and Paramedics and the Retirement Compensation Arrangement for the OMERS Primary Pension Plan (the RCA).
The OMERS pension plans provide pension benefits to hundreds of thousands of Ontarians employed by close to a thousand employers in the municipal sector from across the entire province. Over one hundred thousand pensioners receive pensions from the OMERS pension plans. Under the OMERS Act, the plan is funded via equal contributions from members and employers.
The SC’s key responsibilities are:
- Making decisions about the design of the OMERS pension plans, including benefits to beprovided by, and contributions to be made.
- Deciding whether to establish a reserve.
- Deciding whether to file a valuation more frequently than is required under the Pension Benefits Act.
- Establishing the composition, remuneration and expense reimbursement for the members the SC and OAC Boards.
- Appointing members of the OAC Board, on nominations from sponsoring organizations
The OAC’s key responsibilities are:
- To act as administrator of the OMERS pension plans and as trustee of the pension funds, including paying pensions, making payments under retirement compensation arrangements, establishing investment policies, managing and allocating the assets of the pension plans, and provide for the actuarial valuations;
- To advise and assist the SC, including reasonable technical and administrative support to the SC.
The SC provides for strategic oversight and decision-making by the sponsors of the OMERS pension plans on major policy directions including benefits, contributions and reserves. The decision-making of the SC and OAC impact each other and therefore co-ordination between the Boards and corporations is very important.