OMERS’ employer members have submitted a proposal to reduce pension payouts to retiring members.
Representatives of the Association of Municipalities of Ontario, the City of Toronto and the Electricity Distributors Association have proposed reducing the multiplier in the pension formula for earnings above the year’s maximum pensionable earnings (YMPE) to 1.85%, starting in 2015, from the current 2%.
Under the proposal, members having contributory earnings more than the YMPE will accrue a slightly lower amount of benefit. However, all members will continue to be able to earn an OMERS pension of 70% (before integration) should they choose to accrue additional years of service beyond the current 35 years.
The board will vote on the proposal in late June. For any proposal to pass, it must receive a two-thirds majority vote of the OMERS Sponsor Corp. board, which is made up equally of employer and employee representatives.
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