Plan Funding Overview - Managing the Funded Status

Protecting our funded status using a robust approach to funding management

In 2016, the funded ratio, a key indicator of the long-term financial health of the Plan, increased to 93.4%, up from 91.5% in 2015. The improvement in OMERS funded ratio for the fourth year in a row is due mainly to a combination of increases to contribution rates put in place in 2010, as well as positive investment returns. OMERS 2020 Strategy aims to return the Plan to full funding by 2025 and, today, we remain on course.

Managing the Plan’s funded status

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:

  • contribution rates
  • benefit design
  • investment returns

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. 

Financial strength rating

Current assessments of OMERS creditworthiness by third-party credit rating agencies:

  • AAA from DBRS
  • Aaa from Moody's Investors Service
  • AA+ from Standard & Poor’s.