The goal of the Comprehensive Plan Review is to cut benefits because employers just want to reduce their contributions.

The goal of the Comprehensive Plan Review is long-term sustainability, including affordability for both members and employers. 

Here are the facts: 

  • The intent is not to cut benefits. Rather, the intent is to determine if there is a better and more equitable way to deliver the pension promise in a changing world.
  • From the outset of the review, Board members (both employer and employee representatives) have worked together to determine appropriate benefit changes and financial impacts, including contribution levels.
  • While some members may be willing to increase their contributions, many members have indicated that they would prefer to see contribution levels drop.
  • More importantly, if we don’t take action, future generations of Plan members are at risk of paying substantially more – not just for their own retirement, but for prior generations and future retirees.
  • These are Plan-friendly changes. And member-friendly changes. They are designed to ensure that the Plan remains sustainable, meaningful and affordable over the longer term.
  • This situation is heightened now that Canada Pension Plan (CPP) contributions are set to increase beginning in 2019. Higher CPP contributions mean higher contributions for employers and members. That also means less take-home pay for members.
  • For example, as it stands, many lower-paid OMERS members will receive more in retirement (highernet income) than they do as active workers (OMERS pension, plus CPP and OAS). Why would they choose to defer additional wages and reduce their current standard of living to secure a disproportionate income at some later date?
  • Of interest, the initial set of recommended Plan changes included a range of possible improvements, such as better survivor benefits for single members and enhanced pensions for lower-paid members. While these innovative changes have been set aside for this round of potential Plan changes, the Board may study them further during the next change cycle.
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MYTH #7 - The vote for proposed changes is being pushed forward ahead of schedule.
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