The OPFFA Executive Committee unanimously endorses the two OMERS proposed plan changes.
In our deliberations both now and of past proposed changes, we have determined that these are fair and reasonable for current and future members of the Plan.
After review of the current and predicted make-up of the plan, longevity and other evidence we are confident that limiting the response to just increasing contributions is not sustainable. Sharing the obligation when times are tough will allow the Plan to withstand economic shocks and keep it strong and valuable for retirees, members and employers. There is simply not enough money generated by contributions alone to allow the Plan to withstand a significant economic shock. This is highlighted now more than ever as the post-COVID reports on the global economies are emerging.
Our OMERS SC Representative and Co-Chair of the Board, Frank Ramagnano, is knowledgeable and a valued team member of his peers. The recommendation from the board members and our representative demonstrates their tangible support and action for the sustainability of the Plan. As any additional details flow, the OPFFA Board will be apprised and have our voice heard at the table so that the interests of fire service members are represented.
Other supporting sponsor groups include;
- The Police Association Of Ontario (PAO)
- The Police Association of Ontario supports the proposed changes as they are necessary to make the Plan more equitable between current and future members.
- Link to the PAO OMERS information page
- The Ontario Secondary School Teachers Federation (OSSTF)
- the proposed changes are supported by our employee colleagues the OSSTF.
- Other Employee Groups are announcing their support and will be listed
Past Plan Change Announcements are available at the OMERS.COM site - CLICK HERE
Q - The OPFFA has explained Shared Risk Indexing, but why now, why can't it wait and be introduced when a crisis hits?
A - The fact is, this should have been introduced earlier, Plan changes are not simple to make. The time is now and the strength of Shared Risk Indexing is not realized immediately but grows over time.
- Shared Risk Indexing would begin the slow process of expanding the number of members who will collectively share the impact by changes to inflation increases
- In our current structure, when a crisis hits, the SC Board will only be able to change the Plan for active members
- By acting now, a pool of future retirees with employers and active employers can share the risk of a crisis
Over time, the risk of supporting the Plan would be shared across employers and a larger number of members, reducing the overall impact for any one individual.
Q - In the future, if they reduced my OMERS pension cost of living increase, and the plan became healthier, would the SC Board bring inflation increases back?
A - OMERS recognizes inflation increases are a valued benefit, which it intends to provide,
- If inflation increases were to be reduced, annually the Board would assess whether the Plan’s health would allow inflation increases to resume
- Restoring inflation increases would take priority over contribution rate decreases
Q - If I have a question or want to submit feedback, what should I do?