Global Pensions | 06 Jul 2011 | 11:30
CANADA – The Ontario Municipal Employees Retirement System will increase its contribution rate in 2012 as part of a pre-agreed plan for yearly rate hikes in the three years to 2013.
Employer and employee contribution rates will increase by about 1% each. Contribution rates for members retiring at 65 and earning up to C$48,300 ($50,127) will hit 8.3% in 2012. The rate can vary depending on earnings and retirement age.
In 2010, the OMERS Sponsors Corporation, the pension funds’ plan sponsor, put in a place a three-year plan to increase rates a total of 2.9% in an effort to make up a funding shortfall. (Global Pensions; 6 July 2010)
Contributions will increase 0.9% in 2013.
In 2010, the C$53bn plan reported a funding shortfall of C$4.5bn.
The contribution rates will be adjusted once the plan hits full funding, OMERS said.