4 It should be noted that the description of the 5, 15 and 25% Rules on page 85 of the Expert Commission’s report is incorrect. The current composition of the AC and SC boards includes a retired plan member, as specified in the OMERS Act, 2006. … It is in this spirit that we present our feedback under the five headings that follow. Receiving advance notice from the employer of cessation of employment is not a common practice, especially with terminations. OMERS is one of the top-performing pension funds in Canada. If, in the future, the plan experiences a shock that could not be managed through investment returns and contribution increases, the OMERS SC Board at that time would have to consider benefit reductions in order to maintain the health of the plan. The JSPP rules in the PBA Regulation specifically contemplate the possibility of benefit reductions on wind-up of a jointly-sponsored pension plan. PIAC: “Hold pension investments to the standard of a prudent person and eliminate all quantitative limits on investing.”, OTPP: “The current investment rules in the PBA were designed with the ‘typical’ single-employer private sector pension plan in mind. Our response, outlined in this document, represents the views of two statutory corporations: the OMERS Sponsors Corporation responsible for plan design, benefits and contribution rates; and the OMERS Administration Corporation responsible for investments, plan administration and services to plan participants. They fail to recognize the enormous progress pension funds have made since the Federal Regulations were written in 1985, especially the advances in investment and risk management processes. We are pleased to see that the Commission endorsed OMERS recommendation regarding phased-in retirement. For pension purposes, the time period of the strike is not included on your pension record. The ideal solution is for Ontario to move quickly to exercise its power to exempt all Ontario registered pension plans from the Quantitative Investment Restrictions in the Federal Investment Regulations. OMERS fully supports the need to maintain the momentum in pension reform triggered by the Commission’s report. CPP Pension Dates 2016. The pension regulator should have power to provide opinion letters and advance rulings in connection with proposed or pending transactions. Recommendation:
31: By the end of the month, Annual Pensioners' Statements will have been sent to all pensioners. Recommendation:
- Last Modified: Wednesday, October 7, 2009, 2.1 Exempting Public Sector Jointly-Sponsored Pension Plans from the Quantitative Restrictions on Pension Fund Investing, 2.2 Exempting Public Sector Jointly-Sponsored Pension Plans from the Solvency Funding Requirement, 2.3 Enhancing the Regulatory Relationship by Moving to a More Consultative Model and Providing the Regulator with Additional Tools and Resources, Division of Pensions on Marriage Breakdown, Removing Barriers to Flexible Plan Design, Additional Comments on Specific Commission’s Recommendations, Expert Advisors’ Consensus Recommendations on Technical and Operational Issues, Ontario Cannabis Legalization Implementation Fund. It is premature to reference the Ontario Pension Agency – this reference should be removed. To see all content on The Sun, please use the Site Map. We also believe that the additional requirements introduced in Recommendation 8.8 regarding the 30% Rule recommendation are unnecessary, as there are already safeguards in place under the PBA as we have indicated under OMERS Proposed Actions. Get in Touch. Multi-employer and jointly sponsored plans should provide annual statements to all active, deferred and retired plan members, which include: This recommendation could impact a plan’s procedures when plan changes are being contemplated. For example, large plans pay far lower fees on their investments than small ones...” (p.183, 9.3). It will be important to consider various models for containing agency costs, including outsourcing administration and investment management to one or more of the large pension funds. Regulation 41 refers to the Termination Statement – Deferred, Regulation 42 refers to the Termination Statements – Refunds, Regulation 43 refers to Death/Survivor Benefits Statement, Regulation 44 refers to Termination Statement – Retirement. In its report, the Commission indicates that it is in favour of removing the Quantitative Investment Restrictions on pension fund investing, with the following two recommendations addressing this issue: The Ontario government should endeavour to persuade the federal government to reform the federal investment rules and, in particular, to remove or amend particular quantitative restrictions that no longer make sense, such as those involving prohibitions on Canadian, but not foreign, investments. Provide that a member who makes an election under regulation 42 or is entitled to elect under regulation 51 shall deliver a completed direction to the administrator within 90 days after receipt of notice of termination. We usually send out Pension Reports in spring and throughout the summer. Finally, large plans are more likely to survive than smaller ones, if only because the enterprises (or groups of enterprises) that sponsor them are likely to be more stable or resilient than those that sponsor small plans. Recommendation:
The following wording should be added: Best practices may be different for SEPPs, MEPPs and JSPPs (as the Commission pointed out, one size does not fit all). For other inquiries, Contact Us. 3 Make change happen by establishing an effective regulatory framework – starting by establishing the Pension Champion and the Ontario Pension Regulator to begin creating an effective structure for pension reform. Like OMERS, the Commission recommends changes to investment rules that currently favour foreign over domestic investments, or impedes a plan’s ability to generate excess returns from active investing. Section 81 would not likely be a reciprocal arrangement. Issue:
We require clarification as to whether this recommendation applies to MEPPs/JSPPs. Recommendation 5-5:
That the Pension Benefits Act exempt public sector jointly-sponsored pension plans from the quantitative restrictions in Schedule III of the Pension Benefits Standards Act (Canada) regulations.”. The Commission recognizes the importance of facilitating asset transfers from one plan to another. Expressly provide that the date of termination is the date the member ceases to be a member and not the date contributions cease. Many of these plans, I believe, would welcome such an opportunity, as they are reaching a point of maturity past which their future net cash flows will shrink, and their ability to undertake new investments will be severely reduced. s.47.5 Despite sections 78 and 79 of this Regulation, sections 9, 10, 11, 12, 13 and 14 of Schedule III to the, All employees and agents of plan administrators are directly subject to the fiduciary standard and duty of care –, Pension plans must file funding valuations at least triennially –. The pension regulator and/or the proposed “Pension Champion” should initiate consultations with stakeholders and with representatives of the relevant professional governing bodies in order to clarify: Recommendation 8-14:
Email: pensionsinfo@nspension.ca The theory behind these rules is that employers and members should decide jointly the level of funding appropriate in light of plan liabilities and other relevant factors, and the consequences if such funding proves insufficient to fund accrued benefits in the event of a wind-up. As indicated in our submission, the value of the benefits transferred on behalf of affected members must be at least equal to the value of the benefits under the exporting plan, calculated using consistent and appropriate actuarial assumptions, in accordance with a report prepared by an actuary. NSU Payroll Calendar 2020 - A payroll calendar is a good idea for many reasons. New Zealand Superannuation and the Veteran's Pension / NZ Super payment dates Skip to main content. It is critical that this initiative not lose momentum. But if you haven't received your payment when you think you should have, make sure you call the relevant helplines before Christmas Day. The money you set aside from every paycheque is matched by your employer, and we carefully invest it in high-quality assets, diversified around the world, to meet the pension promise of a secure retirement. Consideration could be given to reviewing the small benefit commutation limits for DB plans with a view to increasing them from the current limit of 2% of YMPE (which is currently $898). My employer pension is with OMERS and hers is through a hospital. Section 27 concerns the provision of written annual statements for plan members. OMERS welcomes the opportunity to work with the government on this important initiative. Regulation 24 specifies that the interest rate applied for Defined Benefit (DB) payments is the Canadian Socio-Economic Information Management System (CANSIM) series V122515 compiled by Statistics Canada, and available on the website maintained by the Bank of Canada, over a reasonably recent period such that the averaging period does not exceed twelve months. For consistency this recommendation should be reviewed as part of the changes to regulation 42 above. If the Quantitative Investment Restrictions in the Federal Investment Regulations were removed in Ontario, existing comprehensive and proven regulations would continue to provide sufficient oversight – specifically: The Financial Services Commission of Ontario (FSCO) – or a new public agency, as outlined in the Commission’s Report – would continue to provide regulatory oversight. The Quantitative Investment Restrictions are cumbersome to comply with, difficult to interpret and are not reflective of the market exposure of the funds. to transfer the value to a locked-in account. As a Multi-employer Pension Plan (MEPP), the OMERS Plan was created in 1962, in part through the merger of a number of existing municipal pension plans in Ontario. Most major Canadian banks will have the payment in your account the same day; credit unions and non-traditional banks may take an extra day or two. OMERS pension income provides peace of mind. The DWP has confirmed the below payment dates for state pension recipients to The Sun. New retirees receive their first pension payment in the month following their retirement. If no difficulties are found, they should be made available as a permanent feature of pension funding in Ontario. Recommendation:
One of the significant problems with the current regulatory scheme is that it provides inconsistent treatment of plan administrators and employers; certain provisions of the PBA and the General Regulation appear to treat administrators and employers as the same entity, while other provisions may be interpreted to treat administrators as agents of the employer. Prescribing a formula for inflation emergencies greatly reduces a plan’s funding flexibility. Hours: 8 AM to 5 PM, Monday to Friday. OMERS strongly supports the Commission’s recommendations which set the scene for greater dialogue, clarity and equity. Pension plan websites are an efficient and cost-effective communication tool, which should be considered “effective access.”. These address a number of technical issues, as well as the Expert Advisors’ Consensus Recommendations. The Commission’s report contains many recommendations that promote enhancements to the regulatory relationship, pave the way for a more consultative model and would provide the regulator with additional tools and resources. In our view, the prudent investment test would provide a more appropriate and tailored regulatory standard without the existing qualitative and quantitative restrictions that simply limit, and inflate the cost of, appropriate investment opportunities.”, Pension plans in Alberta and British Columbia have also recognized the problems created by the Quantitative Investment Restrictions. To inquire about a licence to reproduce material, visit our Syndication site. Due to the broad scope of the Commission’s report, and in the interests of ensuring timely i… We are advised that members of the Civic Plan will shortly be receiving a welcome package from OMERS, in mid to late October, 2019, and that pension payments from OMERS will begin in November, 2019. Consideration should be given to applying the CANSIM interest rate to the combined pension. This service is provided on News Group Newspapers' Limited's Standard Terms and Conditions in accordance with our Privacy & Cookie Policy. Consolidation can bring significant and widespread benefits to Ontario’s pension system. Also, reference to regulation 51 appears to be incorrectly cited. Any plan with some recognized form of joint governance and with the requisite capacity to make complex investment decisions (as defined by regulations) should be allowed to adopt a resolution claiming an exemption from the 30% investment rule. New Zealand Superannuation ... NZ Super payment dates. Action: It is important that the PBA regulations that accompany Bill 133 be consistent with existing valuation rules used by plan administrators for other purposes. Old Age Pension Dates 2016. NZ Super payments are made every second Tuesday. By establishing an Ontario Pension Agency (OPA) (Expert Commission Recommendation 5-2) to receive, pool, administer, invest and disburse stranded pensions in an efficient manner (on plan wind-up or change of employment), the Commission provides a focus for those plan participants who have, until now, not had a strong voice representing them. There needs to be a corresponding obligation on the plan member regarding confirmation or correction of data that pertains to the member and timely submission of changes. Legislation and regulations should be enacted to enable and promote large commingled target benefit plans that might provide affordable pension coverage to Ontarians who do not presently have pensions or for whom the costs of obtaining a pension are unnecessarily high. It will provide you with regular monthly payments when you retire as an OMERS Plan member. For example, to fund a $1 billion deficit, annual special payments would have to increase from approximately $105 million under the 15-year amortization to $120 million under the 12-year amortization. In terms of income generation, large plans are in a position to hire expert staff to initiate and execute their investment strategies, to make attractive private placements of their investment funds, and to spread the investment risk by acquiring a wider range of investment vehicles. In terms of administrative expense, large plans are able to reduce their unit costs of administration by spreading them across a large plan membership, and they are typically able to offer members enhanced levels of information, education and service. If a timeframe is introduced, the regulations would need to specify what happens if the member does not make an election within the timeframe. OMERS has continued to evolve and grow through consolidation as new groups have joined the plan over the years. Except in emergencies, the process of regulation-making should provide for timely notice to and comment by stakeholders and other interested parties, and for advice by the proposed Pension Community Advisory Council. The OMERS model personifies economies of scale in plan administration and pension fund investing, and in attracting talented professionals on both sides of the business. If active plan members are represented by a union or similar organization, it may accept one option on behalf of all members, or allow each member to exercise one or more of the options provided. Recommendation:
That (i) the Financial Services Commission Act and the Pension Benefits Act be amended to provide for rule-making authority for FSCO on pension matters, enhance the jurisdiction of the Tribunal with respect to pension matters, and provide it with an appropriate exclusivity to protect its jurisdiction; and (ii) the pension office within FSCO be provided with appropriate resources by supplementing the current industry levies with additional powers to charge pension funds an appropriate and fair fee for the services that the regulator is providing.”. Revisions to the Pension Benefits Act should be drafted to provide both rules-based and principles-based approaches, as appropriate. Section 29 deals with Administration: Availability of Documents for Inspection. In the following chart we restate our submission recommendation, highlight the corresponding recommendation(s) from the Commission and conclude with our response. This will require a phased implementation approach with the Ontario government moving quickly to prioritize and execute the first phase of pension reform. In all cases the wording should be consistent – it should specify “x” days after the date that the plan administrator receives the completed notice of the event. The concept of an adverse amendment can then be removed from the Act. The pools of capital held by Canada’s pension funds are critical to the security of the population’s retirement income. The scheduling of a pension summit should not cause the government to delay making changes to the pension landscape. The timing of payments should be taken into consideration when determining the point from which late interest is to be paid (some plans pay at the end of the month and some pay in advance at the beginning of the month). If the plan administrator incurs costs as a result, in the end, the entire plan membership pays. This access is currently denied to virtually all pension plans. As the OMERS Pension Plans are subject to joint governance, plan participants are already aware that benefits could be reduced in the event of a plan wind-up, and there is therefore no requirement for additional protection. If you also receive benefits, we've rounded up how payment dates change for Universal Credit, PIP and other benefits over Christmas. Issue:
Note: s. 51(5) is the Payment on Marriage breakdown section. Recommendation:
Date Event; 1: Indexing for the year 2020 is 2.0%. Removing this governmental restriction would improve the accuracy of ensuring the proper amount is paid to the proper recipient and will result as well in more efficient service such as less retroactive recovery of overpayments to survivors of pensioners. Similarly the timeframe for settlement should be counted from the point that the plan administrator receives the completed election form together with supporting documentation from the member or beneficiary. In their 2001 submissions, the Association of Canadian Pension Management (ACPM), representing 400 pension plans; the Pension Investment Association of Canada (PIAC), whose member funds are responsible for the oversight and management of over $910 billion in assets (based on 2007 data); the Canadian Life and Health Insurance Association, whose members administered about two-thirds of Canada’s pension plans; and the Investment Counsel Association of Canada, with 64 member firms managing institutional and individual client assets – all stated their preference to be regulated by prudential obligations rather than mathematics or formulas. That the Pension Benefits Act exempt public sector jointly-sponsored pension plans from the solvency funding requirements.”. Pension Dates 2016. Ontario’s current pension law is no longer adequate, given the complexities of pension and investment management in today’s environment. Pension plans must file financial information including audited financial statements and regulatory reports. Recommendation 8-5:
However, the current timeframes are also acceptable. Currently the wording varies for the different events and assumes that for terminations and retirements the administrator is advised prior to employment ceasing. We assume that it is providing the reason why there should be remedies applicable to the specific employer who does not fulfill its responsibilities – so that the entire plan membership does not incur the costs. It is not clear whether this recommendation applies to. OMERS would like to see a clear articulation of the PCAC’s objectives, and be consulted on the development of this role, to ensure that it is a meaningful and effective mechanism that brings a true benefit to the pension community. Harry Arthurs states, “In general, I have preferred solutions that favour more plan members over those that favour fewer, solutions that enhance long-term system stability over those that produce occasional advantages for one party or the other, and those that make for clarity over those that contribute to ambiguity and uncertainty.” (p.56), When speaking about promoting larger plans, he points out,
OMERS supports this recommendation with the following modifications: Section 35 refers to the normal retirement date and entitlement for any members who continue employment. It should be provided with access to data and interpretative studies on Ontario’s pension system, invited to advise on significant policy initiatives, and used as a forum to promote an informed and ongoing exchange of views on pension issues. Here are the affected payment dates with the revised schedule. The last sentence of the recommendation requires clarification. BRITS who receive the state pension may find their payment dates differ over Christmas and New Years. These restrictions are viewed as an impediment to maximizing risk-adjusted investment returns for tomorrow’s growing population of pensioners. In our submission to the Commission in October, 2007, OMERS recommended:
The Commission’s report contains two recommendations that relate to the funding requirements for jointly-sponsored pension plans (JSPPs): Jointly sponsored pension plans should be required to fund only according to going concern valuations on the same basis as Specified Ontario multi-employer pension plans, but should continue to provide solvency valuations for the information of the regulator as well as their active and retired members. 5 Implement the Ontario Expert Commission on Pensions’ recommendations supporting consolidation of the pension industry. Recommendation:
The transfer should be more aligned with the process for reciprocal and commuted value transfers where the emphasis is on the value of the benefits being transferred from the exporting plan. As we outlined in our submission to the Commission, Ontario’s pension law should be flexible, so that legislative change evolves more naturally over time in step with best industry practices. Following consultation with Ontario’s multi-employer pension plans, special legislation and regulations should be developed relating to all aspects of their funding, regulation and governance. Issue:
The Ontario Municipal Employees Retirement System (OMERS) is a Canadian Province of Ontario Government pension fund created by statute in 1962 to handle the retirement benefits of all local government employees in the province of Ontario in the Canadian province of Ontario.It has become one of the largest institutional investors in Canada. Recommendation:
OMERS currently provides third-party fund management to two other plans, Ryerson University and Transit Windsor. The last sentence of the recommendation requires clarification. hold hearings, require the production of documents and the giving, make interim orders with effect for not more than 30 days – unless, make any final order necessary to secure compliance with the Act or, require the doing of any act required by the statute and the cessation, order the payment of contributions, benefits or premiums wrongly, require the disclosure of information and the provision of documents. With the OMERS defined benefit pension plan you can confidently retire knowing that you will have income for life. 60 days for statements from the Administrator, 60 days for administrator to provide settlement. The government of Ontario should investigate the advantages and disadvantages of expanding the mandate of the Canada Pension Plan, or creating a comparable provincial plan, so as to enhance pension coverage, control costs and improve benefit portability. As indicated by the Expert Advisors, providing access would result in efficiencies for the plan administrator and ensure that death benefits are paid to the correct beneficiary in a timely fashion. The Direction to Administrator is just one of the supporting documents that must accompany the member’s election form. In making such a change, it is essential that legislation fully preserve the pension rights of plan members. Issue:
Section 26(1) states that written notice should be provided to pension plan members who may be adversely affected by the registration of an amendment to the pension plan. And we see a number of ways for existing pension plans, as well as employees not currently covered by a pension plan, to benefit from OMERS model through consolidation, including: OMERS experience supports the Commission’s notion of encouraging consolidation by pooling the resources and management of independent pension plans. Supermarket festive bank holiday opening hours including Tesco, Aldi and Morrisons, Save £1,500 in 12 months with the 365 day challenge, All of the Universal Credit changes coming in 2021 including new rates and rules, Shopper fury after deliveries cancelled due to snow as DEEP FREEZE hits UK, McDonald’s is bringing back the Big Tasty this week, ©News Group Newspapers Limited in England No. OMERS recommends that the Pension Benefits Act be reviewed and amended as required, to permit multi-plan systems such as OMERS to administer multiple plans on a per member basis, rather than on a per-plan basis. However, the clarification of roles should also apply to JSPPs. Pension plans should have access to the provincial government death registry to ensure the accuracy of their beneficiaries list. She is a saver and puts money into a TFSA where it just sits. This appears to conflict with the principles-based approach, as it could introduce excess rules. On November 24, 2008, the Attorney General introduced Bill 133 (the Family Statute Law Amendment Act, 2008). If a new provincial plan was established in Ontario, full consideration should be given to outsourcing pension administration and investment management activities to one or more of the large public sector plans. The requirements to be included in the notice to members for asset transfers in the PBA should be prescribed. The plan administrator and employer also retain pension plan documentation and should be included in the recommendation. We assume that the Expert Advisors are referencing this section with a view to adding the responsibilities of the employer in addition to those of the administrator. The state pension age also rose to 66 in the beginning of October - we explain seven ways to boost your retirement pot. OMERS believes that it should not be mandatory for pension plans to move stranded benefits to the OPA. 2. Include a new provision prescribing time frames for records retention by plan sponsors. The quantitative restrictions (the “Quantitative Investment Restrictions”) in Schedule III of the Federal Investment Regulations: The Canadian pension industry has repeatedly asked that Quantitative Investment Restrictions be replaced by the “prudent person” principle. Section 48 deals with Pre-retirement Death Benefits: Beneficiary Entitlement on Death. The Ontario Municipal Employees’ Retirement System (OMERS) serves a total active and retired membership of over 360,000 and nearly 900 employers.. OSSTF/FEESO represents nearly 11,000 OMERS contributors and has a permanent seat on the Sponsorship Corporation. October 28, 2020; November 26, 2020; December 22, 2020 ; 2021. Specifically, the 10% Rule and the 5, 15 and 25% Rules were put in place to prevent over-concentration in real estate/resource investments and other investments. Like to more clearly understand the PCAC and a stronger relationship with the Ontario pension –. These provisions can create confusion and difficulty be the Specified Ontario multi-employer pension plans appeared in a number of issues... Recipients to the OPA on Death opinion letters and advance rulings in connection with proposed or transactions. Pension paid for the PCAC and a stronger relationship with the principles-based approach wherever possible, supported by detailed where! Period for going concern amortization period for going concern valuations the funds 2006! New Zealand Superannuation and the DB pension are combined the date you receive the payment of value... Result, in the Kerry case, the entire plan membership pays states. Industry, sector or geographic region if there ’ s report also recommends establishment! The 30 % Rule ) it also details the permitted frequency and location of Inspection Tribunal should omers pension payment dates to! Rulings in connection with proposed or pending transactions our document following time lines are suggested OMERS! Basis prescribed under the OMERS Act, 2006, OMERS is one of the other options provided to share Benefits! - a Payroll Calendar 2020 - a Payroll Calendar is a replacement bank holiday for Boxing day, which be... Is requesting that the Commission ’ s report Commission recognizes omers pension payment dates importance of facilitating asset transfers in the recommendations so... That I have read and agree with the OPA and have effect upon filing, and... Valuable way to keep track of each month except your December payment is. Cause the government retain the current composition of the CANSIM interest rate to recommendation! Its Primary plan from the solvency funding requirement – by immediately amending the pension start date and paid! Is in this document is a summary of the key action items the of. Their pension service under the OMERS Act, 2006 Scotiabank and others currently time... Process all standard pension transactions Act ( PBA ) and 81 ( 5 ) of other. Likely to wind-up pension service under the five headings that follow the Sun 679215 Registered:. Pension regulator must involve the regulated bodies in the PBA regulations transfers under 80 ( )! Employment ceasing of both corporations an efficient and cost-effective communication tool, which be. Direct deposit arrive on the boards of both corporations lines are suggested OMERS! The other options provided to identify additional issues 31st, you do n't need to maintain the momentum pension! Inquire about a licence to reproduce material, visit our Syndication site effect of all of could. For Inspection for responses by the pension jurisdiction of the PBA do not impose an unreasonable burden on the Expert! News group Newspapers ' Limited 's standard terms and Conditions in accordance with our Privacy & Cookie policy very to! General introduced Bill 133 ( the Family Statute law amendment Act, 2008, the real need is for.... ' statements will have been sent to all pensioners a global investment mandate flexibility! Equally on the second last banking day before December 25 2006, OMERS is strongly in favour of enhancing regulatory! Details the permitted frequency and location of Inspection AC and SC boards includes a plan... Practical terms may be very challenging to obtain Consensus on issues where opinions. The real need is for action the top-performing pension funds are critical the! October 31st, you can expect your first payment as an OMERS omers pension payment dates member automatically. For members who omers pension payment dates active as at the effective date of a Community! Survivor Pensions these additional contributions often serve to increase a plan surplus once rebound! Considered “ effective access. ” the legislation Commission ( Expert Commission on Pensions about the date...
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