OMERS Earns 12% in 2010 But Deficit Swells
Tara Perkins of the Globe and Mail reports, OMERS boosts return, funding deficit swells : The Ontario Municipal Employees Retirement System has posted a 12.01-per-cent rate of return for 2010, up from 10.6 per cent in 2009. But its funding deficit has tripled to $4.5-billion as its pension benefit obligations have increased. OMERS released a summary of its financial results Monday, with detailed information to follow later this month. The fund, which provides pension services to more than 400,000 people, is grappling with a shortfall in the wake of the recession. Temporary contribution increases and benefit reductions are part of the strategy to return it to balance. It requires a 6.5-per-cent annual return to bring itself back into a surplus position in 2025. “Based on our asset mix policy and active investment strategy, we believe we can generate average returns of 7 per cent to 11 per cent annually over the next five years,” said chief financial officer Patrick Crowley.