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.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.