Managing Funding Pressures OMERS Primary Pension Plan

Slides:



Advertisements
Similar presentations
Revaluation of USS Pension Scheme – Staff Briefing April 2014 Richard Benson, Jo Brake-Oakes, John Garnham Improving health worldwidewww.lshtm.ac.uk.
Advertisements

THE ROLE OF THE ACTUARY IN THE ECONOMY
THE PENSION LAUNCH PASBO Annual Conference March 18, 2011 Mr. Patrick Sable, PRSBA Chief Financial Officer Allegheny Intermediate Unit #3 Are You Communicating.
Romano (1993): Public Pension Fund Activism n 1996: Public pension funds own over $300 billion; 30% of corporate equity. n Political pressure on Public.
York University Pension Plan Terisa Ducharme Associate Director, Pension & Benefits Annual Pension Meeting, April 16, 2010.
ORP Contribution Concepts IFS-Sponsored Presentation Denise Yunker, Benefits Director Human Resources Division, OUS
COUNCIL OF ONTARIO UNIVERSITIES Council of Ontario Universities Working Group on University Pension Plans Presentation for Briefing Meeting on Solvency.
Pension Accounting Chapter 17
Communicating the Facts on GASB 68
January 18, 2011 Howard Bicker, Executive Director, SBI Dave Bergstrom - Executive Director, MSRS Mary Most Vanek - Executive Director, PERA Laurie Fiori.
GASB Technical Update Mark Thomas KPMG LLP Year-End GAAP Training April 18, 2014.
Pension Funding Risks & Possible Method Changes Alan Milligan Chief Actuary.
COH PENSION SYSTEMS STATUS UPDATE BUDGET & FISCAL AFFAIRS COMMITTEE December 7, 2010 Craig Mason Chief Pension Executive.
CWU PENSIONS SEMINAR. History of Pensions and Royal Mail Pension Schemes.
8 th Atlantic Connection Public Pensions Assumed Rate of Return & Pension Deficits: New Ideas, New Solutions Jeanna M. Cullins, Partner.
City of Hallandale Beach Professional/Management Retirement Plan Actuarial Review March 17, 2014.
P 3 Actuaries you can understand 1 Introduction to the Actuarial Valuation: Funding and Assumptions January 12, 2006 P.
1 Statewide Retirement Systems Funding Updates Presentation to the Legislative Commission on Pensions & Retirement Dave Bergstrom, MSRS Executive Director.
IAS 26 – Accounting and Reporting by Retirement Benefit Plans Wiecek and Young IFRS Primer Chapter 36.
TMRS for City Managers and City Officials 2007, Texas Municipal Retirement System Annual Training Seminar.
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
March 9, 2006www.psers.state.pa.us1 PSERS An Update on the State of the Fund, the Employer Contribution Rate and Pending Legislation.
Presented by: G.S. Curran & Co. GASB 68 FOR COST SHARING EMPLOYERS OF THE ASSESSORS’ RETIREMENT FUND.
12 February 2015 Defined benefit pension schemes – What next for Trustees?
Covered Employer Training Program Introduction to the Retirement Systems FY 2016.
Cambridgeshire Pension Fund Investments Anthony Olaniyi.
Regina Civic Employees’ Superannuation and Benefit Plan April 14, 2011.
Copyright © 2016 by The Segal Group, Inc. All rights reserved. Unfunded Actuarial Accrued Liability (UAAL) Presentation to the Joint Board of Supervisors.
History & Update of the City of Fort Worth Employees’ Retirement Fund Presented by Laetitia Brown, Senior Assistant City Attorney, Department of Law May.
Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 4/09/09.
Regional Transportation District Salaried Employees' Defined Benefit Pension Plan Presented by: Terry Bright January 13, 2015  Foster City, CA  Denver,
PERS Education and Retirement Planning Welcome ! The Oregon Public Service Retirement Plan (OPSRP) Updated: 4/22/08.
New Member Mid-CareerNearRetirementAfterRetirement Municipal Pension Plan Operations and Financial Review December 31, 2002.
STRATHCLYDE PENSION FUND ANNUAL GENERAL MEETING 14 JUNE 2013.
Jack JonesSheila Vandenberk OMERS Sponsors CorporationOMERS Administration Corporation OSSTF/FEESO Leadership 2010 Conference August 2010.
Actuarial Status Update of the Employees’ Retirement Fund of the City of Fort Worth May 4, 2010 Presented by Doug Anderson, EA, ASA, MAAA Gallagher Benefit.
GASB’s OPEB Changes - Will they impact public sector health care benefits? November 7, 2014 Eric Gary, FSA, FCA, MAAA Chief Health Actuary.
Ian Kinross, OMERS Manager, Client Services
Opening Remarks Moderator R. Kinney Poynter Executive Director NASACT
Local Government Pension Scheme in England and Wales AN UPDATE
Presentation to Portfolio Committee on Public Service and Administration as well as Performance Monitoring and Evaluation 1 March 2017.
OMERS Modified Inflation Indexing (MI2) Proposal
Director, Center for Workers’ Benefits and Capital Strategies, AFT
Managing Funding Pressures OMERS Primary Pension Plan
Presentation to Standing Committee on Finance 12 April 2016
TOWNHALL PRESENTATION Queen's University
Establishing and Maintaining an OPEB Trust
California Employers’ Retiree Benefit Trust
Annual General Meeting December 15, 2017
Texas’ Retired Employees Obligations: Case Study – City of Houston
Comprehensive Plan Review and the Fight to Protect Guaranteed Indexing
HRM Pension Plan Town Hall Information Sessions
Carleton University Retirement Plan Update Carleton University Retirees Association February 2, 2018 Betsy Springer Director, Pension Fund Management.
Teachers’ Pension Scheme
City of Houston Retired Employees Obligations
Communicating the Facts on the MERS Experience Study
National Society of Institutional Investment Professionals Public Plans – Plan Design and Funding Issues Good Morning My name is Cheryl Clemons and I.
Senate E-12 Finance March 19, 2018
Queen’s University Presentation for Pensioners On the University Pension Plan (UPP) This is a presentation prepared by Queen’s University for its employees.
Slide Deck: Local Governments
William B. Fornia, FSA April 11, 2019
Retirement 101 James Wilbanks, Ph.D. Retirement Administrator
Queen’s University Information Session University Pension Plan (UPP)
City of Phoenix Employees’ Retirement System
Pension Regulations Presented by David Maccoux, CPA, Shareholder
City of Palos Verdes Estates Pension Overview
Legislative Update: SB 2224 and SB 322 October 1, 2019.
2018 COLA Presentation June 28, 2018 Thomas Hartwell.
CalPERS Update & Discussion
Presentation transcript:

Managing Funding Pressures OMERS Primary Pension Plan DRAFT DRAFT Managing Funding Pressures OMERS Primary Pension Plan OMHRA April 2010

“OMERS” An Overview OMERS Governance Bodies OMERS Plan serves 390,000 active and retired members; 921 employers and has over $40B in net investment assets. Province passed legislation in 2006 divesting it as the Plan sponsor and established a dual governance structure. Province identified initial sponsor representatives to both Corporations’ Board of Directors. www.omers.com “OMERS” An Overview Association of Municipalities of Ontario (AMO) AMO was mandated to represent municipal OMERS employers and other sponsors for example are CUPE, Firefighters, Police, OPSEU. All municipal governments are not OMERS employers; those that are represent almost 50% of total active members in the Plan. In 2008, AMO directed the creation of a separate corporation (MEPCO) to be its voice on pension matters and to support AMO’s representatives to the OMERS governance bodies. AMO/MEPCO Appointees to OMERS OMERS Sponsors Corporation (SC) Responsible for plan design, determination of changes to benefits and contribution rates, reserve policy and appointment protocol for both OMERS Boards. Seven Employer and Employee Representatives from the Plan’s major sponsor groups with weighted voting. Municipal Employer Pension Centre of Ontario (MEPCO) MEPCO undertakes research and analysis on pension matters from review of legislation, ideas for funding strategy, develops proposals for Plan changes and reviews other sponsors’ proposals in order to provide advice to its OMERS representatives on impacts to municipal employers. It requires leading pension expertise, legal counsel and qualified representatives. MEPCO Board has a broad range of competencies including pension industry. It is funded entirely by municipal employer voluntary contributions. It updates members and issues an annual report. www.mepco.ca Marianne Love Bruce Stewart OMERS Administration Corporation (AC) Responsible for day to day administration of the pension plan, including investment strategy, valuation and pension benefit administration. Seven Employer and Employee Representatives from the Plan’s major sponsor groups with equal voting. Bill Aziz Michael Power January 2010

Investment and Funding DRAFT Investment and Funding DRAFT Investment Returns (total) 2008 – negative 15.3% 2009 – positive 10.6% Funded Status 2008 - $279M deficit (99.4% funded) 2009 - $1,519M deficit (97.2% funded) Deficit expected to grow significantly Actuarial smoothing of 2008 losses over a period of time means $5B of deferred investment losses to be accounted for in the next four years Smoothing cushions plan’s funding from volatile market conditions

Towers Watson Projections DRAFT DRAFT Towers Watson Projections

Towers Watson Projections DRAFT DRAFT Towers Watson Projections A Funding Target of 3% to 4% per side over the next few years is required

Addressing Pension Deficits DRAFT Addressing Pension Deficits DRAFT Superior investment returns Current assumption is 6.5% Investment strategy OAC responsibility Increase contributions and/or change benefits SC review of possible contribution and/or benefit changes

Specified Plan Change Timeline DRAFT DRAFT January March April May June July August February SC Member SC Member Valuation Receipt ±March 1 Stakeholder May 1 May 14 July 1 1. Concept & Evaluation Tabling/ Formal Proposal 3. 4. 5. Arbitration/ Mediation Decision Proposal/Final Diligence

2010 Specified Plan Changes 3 Proposals tabled at March SC meeting 3-year managed approach to balanced funding (contribution increases and benefit changes) Rescind the cap on contributory earnings NRA 60 for Police Civilians Proposals tabled at April SC meeting Decisions in May and June – www.omerssc.com

Moving Forward Continue to review plan valuation and projections Determine action needed to address deficit Develop an Objectives Statement Partner with OAC on pension reform and growth initiatives

Managing Funding Pressures OMERS Primary Pension Plan DRAFT DRAFT Managing Funding Pressures OMERS Primary Pension Plan OMHRA April 2010