Meeting Summary

OAC Board - May 18, 2017

Q1 2017 Operational Risk Report

The SVP, Risk Management, presented a high-level overview of the Q1 2017 Operational Risk Report which was updated to reflect recent developments.

Following a question and discussion period, the OAC Board approved the Q1 2017 Operational Risk Report.

Proposed Changes to Appeals Process

In the last two years, OAC Management and the Appeals Committee have gained insightful experience on the appeals process, due to an increased number of oral appeal hearings, novel issues and the participation of OAC as a party in some appeals.  Based on this experience, OAC Management undertook a review of the current practice and considered ways to improve the efficiency, transparency and fairness of the appeals process.  The recommended changes to the appeals process require revisions to the governing appeals documents.   

The Chair of the Appeals Committee provided a high-level overview of the proposed changes to the Appeals process and responded to questions from the Board.

Following discussion and with no further questions, and as recommended by the Appeals Committee at its meeting held on May 15, 2017, the OAC Board approved the changes to By-law No. 4 for implementation effective May 18, 2017, and approved the changes to the Appeals Rules and the Appeals Manual for implementation effective January 1, 2018.

Competency Framework Process

At its meeting on May 16, 2017, the Governance Committee reviewed the key takeaways from the April 11, 2017 Joint Education Session of the OAC/SC Governance Committees, including the Competency Framework of the OAC Board, the respective roles of the two Boards in developing a high capacity OAC Board and enhancing the ability of the SC to provide feedback to facilitate timely discussion with Sponsor Organizations and decision-making by the Sponsors Corporation Board on the appointment and reappointment of Directors to the OAC Board.

The Governance Committee had discussed a process to provide an updated approach to the Sponsors Corporation Corporate Governance Committee (“SC CGC”) at its June meeting to continue with discussions on its role relating to building a high capacity OAC Board based on a new template for the Competency Framework.  The Committee proposed that the final Competency Framework would be brought forward to the August meeting of the Governance Committee for further discussion and recommendation to the OAC Board for approval in August.  In the interim, the Board Chair and the Chair of the Governance Committee would discuss the preliminary document with the SC CGC at its meeting in June.   

Following a question and discussion period, and as recommended by the Governance Committee at its meeting held on May 16, 2017, the OAC Board:

  • approved and authorized the Board Chair and/or the Chair of the OAC Governance Committee to review and discuss the proposed Competency Framework document with the SC CGC at its meeting in June 2017; and
  • approved and directed the Chair of the Governance Committee to report any substantive feedback from the SC CGC to the Governance Committee as part of the Governance Committee’s consideration of the Competency Framework at its August 2017 meeting.

Appointment of External Actuary

The Audit & Actuarial Committee Mandate requires the AAC to recommend, at least once every five years, the appointment of the external actuary to the OAC Board. OMERS last Request for Proposal (RFP) for actuarial services occurred in 2012. The current five-year letter of engagement with Willis Towers Watson expired on June 30, 2017.

As recommended by the Audit & Actuarial Committee at its meeting held on May 17, 2017, the OAC Board approved the reappointment of Willis Towers Watson as the external actuarial firm to the OAC Board effective July 1, 2017 for a five-year term.