OMERS released their much awaited financial results for 2008. As anticipated the markets pummeled the fund and along with it the taxpayer.
The Ontario Municipal Employees Retirement System is the 3rd largest pension fund in Canada. These pension funds have been the largest diversion of taxpayer’s money since the secound world war. This money has gone into public sector plans to prepare for the retirement of those society used to call public servants and now refers to as public masters.
On a positive note to the members of the OMERS plan, in a statement from the President and CEO of OMERS “I know that the global financial downturn has raised concerns among some of our OMERS members, especially those approaching retirement as well as retirees who are now relying on their pension income to make ends meet. The first and most important thing I want to do is to assure all members that their pension benefits are secure. They are based on an individual’s years of service and earnings – not on the performance of the stock market.”
This statement is designed to comfort the public sector employees that no matter what the markets do in the end the plan is guaranteed by the taxpayers for the promised pension income. Furthermore any enhancements over the years have been determined by the courts to be an unbroachable contract between you (the taxpayer)and the public sector employee for these benefits.
These plans are guaranteed by you the taxpayer to provide a guaranteed stream of income to the public sector employee for the rest of their lives. Generally the income stream to be guaranteed is based on 70% of the last 5 year’s income of working salary. Recently several members of OMERS in Ontario increased the income to the last 3 years of working income, congratulations. You have also guaranteed to increase their pension income every year and pass along 60% to a surviving spouse regardless of whether or not they have their own public sector pension.
Thanks for your appreciation to the hard work and service of Canada’s public sector. Thanks to you they will have a gold-plated pension plan.
For an excellent analysis of the details of the financial report on the plan please read the Pension Pulse by LEO KOLIVAKIS
I will be watching the progress on the reports of this situation as they are analyzed by the media over the next few days. But in the meantime get back to work we need your tax dollars to fund these things!
Here is a list of Canada’s top pension plan – Top Plans PDF.