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Setting the record straight

Addressing the top myths about the Comprehensive Plan Review

In light of materials that have been circulating about the change proposals, here we set the record straight to address some of the recent myths about the Comprehensive Plan Review.

OMERS is manufacturing a crisis and exaggerating the challenges facing the Plan today. 
While there’s no immediate crisis, the Plan faces some longer-term challenges that will increase the cost of the Plan in the future and reduce our long-term sustainability.
OMERS is doing better than any other major pension plan.

Despite our strong investment returns in the past few years, we continue to lag our peer plans when it comes to full financial health. 

If conditional indexing is adopted, indexing will only be provided if the Plan is fully funded or in surplus.

Under the proposed changes, the granting of indexing, in full or in part, would not depend on full funding. The intent is to grant the maximum, sustainable level of indexing – provided it doesn’t materially reduce the Plan’s financial health.

Changes to how your pension is calculated would mean a substantial loss in benefits.

The actual impact of any Plan changes will vary from one member to the next based on their personal circumstances and choices. Many members will have the opportunity to earn larger pensions when combined with the enhanced CPP pension.

Moving to conditional indexing is just a way to cut benefits.

Conditional indexing is used as a risk-management tool that has allowed many of our peer plans to restore their plans to full health, while still providing indexing when affordable – which these plans have been able to do to date. 

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. 

The vote for proposed changes is being pushed forward ahead of schedule.

The vote has been deferred by almost 18 months to allow additional time for consultation with sponsors and other stakeholders, including members.

Provincial pension laws can change any time and the proposed changes could ultimately affect current retirees.

By making the Plan more meaningful, affordable and sustainable, the Comprehensive Plan Review protects the interests of current retirees. The proposed changes would reduce the need for a provincial government to intervene.