Associated Employers

Participation

Through the Associated Employer provision, OMERS can provide membership to employees who are not directly employed in the municipal sector, but whose organization provides a municipal service or program.

In order to be eligible to participate in OMERS as an Associated Employer, an organization must be:

(a) under an agreement with a municipality or local board or under an Act, to provide a service, program or thing to a person that the municipality or local board is authorized to provide to the person; or

(b) incorporated in accordance with section 142 of the Electricity Act, 1998 for the purpose of generating, transmitting, distributing or retailing electricity.

Covered Employment

If an employer is eligible to participate in OMERS as an associated employer under definition (a) or (b) above, they have the ability to define classes of employees for participation purposes - as long as the employees within the classes satisfy the "covered employment" definition.

Covered Employment -
Provision (a):

"Covered employment" for employers eligible to participate under provision (a), includes employees whose duties relate primarily to the service, program or thing provided by your organization on behalf of a municipality or local board.

"Primarily" means at least 51% of an employee’s regular duties must relate to the service, program or thing that your organization is providing to a municipality or local board. Any administrative activities relating to the service, program or thing are considered "covered employment".

If an organization provides other services not covered by the agreement with the municipality or local board or under an Act, the employees providing those services are not in covered employment and not eligible to participate in OMERS.

Covered Employment -
Provision (b):

"Covered employment" for employers eligible to participate under provision (b), includes employees whose duties relate primarily to generating, transmitting, distributing or retailing electricity. "Primarily" means at least 51% of an employee's regular duties must relate to generating, transmitting, distributing or retailing electricity. Any administrative activities relating to generating, transmitting, distributing or retailing electricity are considered "covered employment".

If the organization provides additional services not related to generating, transmitting, distributing or retailing electricity, the employees providing those unrelated services are not in covered employment and are not eligible to participate in OMERS.

Other requirements for Associated Employers

On an annual basis, a letter of credit is required in an amount equal to 4 months of employee and employer contributions.

Every year OMERS will request an attestation that all your employees enrolled in OMERS continue to satisfy the covered employment definition where your organization participates in OMERS as an associated employer under definition (a) or (b). In the event a member no longer satisfies the definition, his/her participation in OMERS will end and pension termination options will be provided.

Current permanent full-time employees

These employees must be given the option to join OMERS on the date the employer elects to participate in OMERS. In the event they decline to join (a signed waiver is required), they will continue to have this ability to join at any point in the future as long as they continue to be a permanent full-time employee of the organization.

Current part-time employees

These employees must be given the option to join OMERS on the date the employer elects to begin participation in the OMERS if, during each of the two immediately preceding calendar years:

  • the employee has worked at least 700 hours (including overtime) with your organization or any participating OMERS employer or
  • the employee has earned including overtime and vacation pay, at least 35% of the Year’s Maximum Pensionable Earnings (YMPE) with your organization or any participating OMERS employer.

Permanent full-time employees hired on or after the participation effective date

As a condition of employment, these employees must enrol in OMERS on their date of hire. There is no probationary or waiting period for enrolment in OMERS.

Part-time employees hired on or after the participation effective date

These employees have the option to join OMERS on date of hire or January 1 of a given year if, during each of the two immediately preceding calendar years:

  • the employee has worked at least 700 hours (including overtime) with your organization or any participating OMERS employer or
  • the employee has earned including overtime and vacation pay, at least 35% of the Year’s Maximum Pensionable Earnings (YMPE) with your organization or any participating OMERS employer.

Note: An employer could also choose mandatory participation for all or class(es) of part-time employees
hired on or after the participation effective date.

Associated Employer Process Overview

Step 1: Participation Questionnaire

A potential Associated Employer is required to complete an Employer Participation Questionnaire (included) and submit it to OMERS for review.

Step 2: Eligibility Reviewed / Confirmed

OMERS reviews the completed questionnaire and supporting documentation to determine whether the potential employer satisfies the eligibility requirements.

Step 3: Resolution & Required Documents

OMERS provides the employer with a draft resolution appropriate for their circumstance (sample included). The employer completes the draft resolution, including an effective date of participation, and submits it to OMERS for review. Once approved, the Board of Directors of the employer will pass the resolution and return a certified copy of the resolution to OMERS along with the following required documents:

  • Employer Duties
  • Letter of Credit (covering four months of employer/employee contributions)

Step 4: Employer set up

OMERS will establish a new employer group number and partner with the employer in the administration of the pension plan. To support administrative requirements, OMERS provides best-in-class online tools and customer service to help the new employer administer the plan.

Step 5: Member set up

The new employer enrols members in OMERS and begins remitting contributions. An assigned OMERS representative will be available to assist the employer throughout the process.

Step 6: Pension Administration

The new employer provides annual data to OMERS going forward, and works with OMERS on other aspects of administration including future enrolments, member events (e.g. retirements), leaves and communications. OMERS provides ongoing employer/member education and communication. This can include presentations to employees, as well as administrative training for payroll and human resources representatives.

Contact us to find out more.