THE OMERS MODEL :

A JOINTLY SPONSORED PENSION PLAN

OMERS Primary Pension Plan is a jointly sponsored pension plan (JSPP) that provides defined benefits (DB). A DB pension is determined – or defined – by a formula involving years of service and earnings.

You contribute a set amount and your employer matches those contributions.

We expertly invest those funds.

When you’re ready to retire, we use your earnings and years of service to calculate your benefit.

Our jointly sponsored structure means members and employers share the responsibility of decision-making and funding. There are many advantages to participating in a JSPP like OMERS. Here are just a few benefits of our model:

1. Risk Sharing
Shared responsibility eases financial pressures and promotes fair governance.

2. Joint Governance
Joint decision-making promotes diversity of thought, which is better suited to represent a diverse member base.

3. Economies of Scale
Large pension plans attract top talent to actively manage a portfolio of diverse assets. Canada’s largest pension plans benefit from professional asset management and a low-cost structure.

4. Access to Expertise
Employing large teams of specialized professionals, the expertise within large pension plans like OMERS allows for disciplined, high-quality investing.

5. Sustainability
Large DB pension plans invest in people, communities, the province, and beyond. The impacts of DB pension plans are wide-reaching, since pension payments translate into billions of dollars of consumer spending across the nation.

6. Economic and Social Value
DB pension plans strengthen economies by empowering their members to be financially independent. Compared to members without a DB pension plan, OMERS members show more self-reliance, both financially and non-financially, feel more prepared for unexpected expenses, and rely less on government support in their retirement years.