Retirement ~ OMERS Changes December 31, 2022

We wanted to take this opportunity to remind members of the changes coming to OMERS for January 1, 2023, which were approved by the OMERS Sponsor’s Corporation (SC) on June 24, 2020. Please see attached communication shared at that time by OSSTF. Approved Changes https://mcusercontent.com/fd92d8e08ce1d6b287b53b308/files/e271eb54-bca3-0d7b-864b-472f93b78ef5/152_OMERS_Plan_Design_Changes.pdf OMERS Plan Changes https://mcusercontent.com/fd92d8e08ce1d6b287b53b308/files/d8fc120d-f4d0-333d-4bdc-86354c84b4fc/154_OMERS_Plan_Changes.pdf If you are eligible to retire on or before December 31, 2022 you may want to consider these changes in making your decision. If you have questions related to your OMERS pension we suggest reaching out to OMERS directly, their number is 1 800.387.0813


I am retired:

  • Nothing changes;

  • Your pension payments will never go down;

  • Your pension payments will increase every year based on inflation as it does now, with no change in how it is calculated;

  • Your pension plan would be more sustainable over the long-term.

I am retiring on or before December 31, 2022:

  • Nothing changes;

  • Your pension payments will never go down;

  • Your pension payments will increase every year based on inflation as it does now, with no change in how it is calculated;

  • Your pension plan would be more sustainable over the long-term.

I am retiring after December 31, 2022:

  • Your pension payments will never be less than the year before;

  • The pension benefits you earned while working on or before December 31, 2022 will increase every year based on inflation;

  • The pension benefits you earn while working after December 31, 2022, might not grow as fast as inflation;

  • Your pension plan would be more sustainable over the long-term.

Why did this change happen?

  • The number of retirees is increasing faster than the number of active members joining the plan. This is called “plan maturity” and it is significantly changing the ratio of active to retired members;

  • Plan risk is carried by contributions made by active members and employers. This group is not growing as fast as the retired members;

  • In 1979, there were seven active members for each retiree, now the ratio is 2-to-1. Soon, the ratio will be 1-to-1. This reduces the plan’s financial resiliency, and increases the risk faced by future generations of plan members;

  • As the plan matures, it becomes more vulnerable to market downturns as the ratio grows smaller;

  • As the proportion of contributing members continues to decrease, annual contributions will become less than annual pension payments. In 2019, OMERS paid $400 million more to retirees than contributions coming in. That differential is made up by investment returns.

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