In 2015, the funded ratio, a key indicator of the long-term financial health of the Plan, increased to 91.5%, up from 90.8% in 2014. The deficit of $7.1 billion was reduced by $0.1 billion and now stands at $7.0 billion. In addition, benefit design and contribution levels did not change.
Our long-term goal is to return the Primary Plan to full funding with 100% of the assets required to cover accrued pension obligations. Our five-year Strategy advances our funded status to meet full funding by 2025, and today, we remain on course.
Making good, long-term decisions to protect the Plan’s funded status is critical to keeping the Plan healthy over the long term. There are three levers available to manage the Plan’s funded status:
Responsibility for implementing strategies to manage these three levers is shared between OMERS Sponsors Corporation and OMERS Administration Corporation.
OMERS Sponsors Corporation sets contribution rates and benefit levels - taking into consideration the Plan’s funded status (surplus, reserve or deficit). Decisions are guided by a clear framework - a Funding Management Strategy - that protects the Plan’s funded status and supports pension security and sustainability for current and future retirees.
OMERS Administration Corporation determines the actuarial assumptions and methods used to calculate pension obligations - including the Plan’s discount rate, based on advice from an independent actuary - and sets minimum funding requirements in accordance with pension laws and regulations. OMERS Administration Corporation is also responsible for investments on behalf of the Plan.
To protect our funded status, we have a comprehensive funding management strategy in place, as well as other tools to ensure the long-term sustainability of the Plan.
Current assessments of OMERS creditworthiness by third-party credit rating agencies: