OMERS' Economic Contribution to Ontario Grows to $15.3 Billion
OMERS latest economic and social value analysis reveals that pensions do far more than support retirees; they fuel local economies, drive job creation, and provide lasting stability for communities across Ontario.
New data from the Canadian Centre for Economic Analysis (CANCEA) shows OMERS added $15.3 billion to Ontario’s GDP in 2025 and its activities benefitted 1 in 11 households, confirming its importance to the province’s economy. The research into the social value generated across Ontario by OMERS in 2025 – a year marked by global economic uncertainty - demonstrates the meaningful positive impact delivered to Plan members and their communities.
With more than 665,000 members, OMERS continues to deliver strong economic value through the spending of pension benefits, ongoing operations, and investments in communities across the province.
“OMERS is a powerful economic engine for Ontario,” said Jonathan Simmons, OMERS Chief Financial and Strategy Officer. “In 2025 alone, our activities generated billions in GDP and helped support more than 135,000 jobs across the province. These results underscore how pensions don’t just support retirees—they help strengthen local economies, create jobs, and provide a stable foundation.”
Beyond its economic impact, the research highlights the growing social value of OMERS defined benefit pension, particularly in today’s challenging economic environment.
CANCEA’s social value survey found that OMERS retirees report significantly high levels of life satisfaction, financial security, and overall well‑being, a difference researchers describe as the “stability dividend.”
“Every month, OMERS pensions reach communities across Ontario, providing reliable income that retirees can count on,” said OMERS Chief Pension Officer Celine Chiovitti. “This report demonstrates just how meaningful that stability is, not only for our members, but for the local businesses, services and communities they support. These findings reaffirm the value of a secure, defined benefit pension and show how OMERS continues to make a positive impact across generations.”
The study found that Defined Benefit (DB) pension members are significantly more likely to support their communities through charitable giving, with 61% of non-retired DB members donating $100 or more annually to charity. OMERS active members have higher workforce retention, with 90% citing their pension as a key reason for staying with their employer.
“By supporting local jobs and helping retirees enjoy greater dignity and confidence, OMERS plays an important role in Ontario’s social and economic fabric,” said Ms. Chiovitti.
“These findings highlight why defined benefit pensions are so valuable to current retirees and to the province’s continued well-being,” adds Dr. Paul Smetanin, President and CEO of CANCEA.
For more information, explore Essential Stability: OMERS continued impact on Ontario's Economy and members' lives.
A growing economic impact
The new report shows that OMERS activities contributed to:
$15.3 billion in provincial GDP (an 11% increase from 2023 and a 28% increase from 2020).
135,200 jobs across Ontario, including almost 40,000 jobs in rural communities.
Nearly $4.2 billion in combined federal and provincial tax revenue.
In total, more than 832,000 Ontarians - the equivalent of 1 in 11 households - benefited from OMERS activities in 2025.
Impact across all regions of Ontario
OMERS contribution to economic activity is felt across every region:
Greater Toronto Area: 71,500 jobs; $7.9B GDP contribution
Southwestern Ontario: 25,800 jobs; $2.7B GDP
Eastern Ontario: 16,800 jobs; $1.7B GDP
Central Ontario: 14,900 jobs; $2.4B GDP
Northern Ontario: 6,200 jobs; $0.6B GDP
Social value and essential stability
The social value of DB pensions has shifted from offering a 'lifestyle advantage' in 2020 to providing 'essential stability' in 2025, highlighting the OMERS role as a stable part of Ontario’s social infrastructure.
OMERS retirees scored high in life satisfaction. This reflects the well-being associated with retirement support programs like OMERS.Health and well-being
DB retirees are more likely to report lower stress, positive mental health, and good physical health.
Community impact
Charitable Giving (Not Yet Retired): Active DB members are more than twice as likely to donate $100 or more each year to charity.
Charitable Giving (Retired): 75.7% of DB retirees donate significant amounts to charity.
Volunteering: 61% of OMERS retirees volunteer in their communities.
Workforce retention
Keeping employees: OMERS active members have higher workforce retention, with 90% citing their pension as a key reason for staying with their employer.
Retirement planning confidence
DB Members: 93% say their pension plays a meaningful role in their retirement planning.
About OMERS
OMERS is a jointly sponsored, defined benefit pension plan, with more than 1,000 participating employers ranging from large cities to local agencies, and 665,000 active, deferred and retired members. Our members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers, and originating and managing a diversified portfolio of high-quality investments in government bonds, public and private credit, public and private equities, infrastructure and real estate.
Alright, I was going to talk about OMERS again but today is Pension Awareness Day in Ontario and Don Peat at OMERS sent me this press release which is worth highlighting.
Worth noting again what Jonathan Simmons, CFO & CSO at OMERS states above:
“OMERS is a powerful economic engine for Ontario,” said Jonathan Simmons, OMERS Chief Financial and Strategy Officer. “In 2025 alone, our activities generated billions in GDP and helped support more than 135,000 jobs across the province. These results underscore how pensions don’t just support retirees—they help strengthen local economies, create jobs, and provide a stable foundation.”
There is no question OMERS and other large defined benefit plans in Ontario do their part in helping that province's economy over the long run and it's important to highlight this.
OMERS quantifies it and while it and other top Canadian pensions get criticized in the media for not investing enough in Canada relative to the US, the truth is they do invest across public and private companies and have a material impact on the economy.
By the way, Vincent Morin, President of Trans-Canada Capital shared this with me after reading my post earlier this week on top pension funds investing in the US:
I don’t usually comment publicly on these issues, but this one matters to me.
Many are missing an important point. Yes—fiduciary duty, diversification, and strong risk‑adjusted returns must drive pension investing. And I also agree that adding constraints is not a good idea. But beyond where assets are invested, we should also look at where management fees go. When Canadian pension plans hire managers with a strong local presence, the fees flow back into the Canadian economy through jobs, business activity, and taxes. When plans hire foreign firms with no real Canadian footprint, those profits, salaries, and taxes go offshore. With the rise of alternatives, a large share of fees paid by Canadian plans now ends up abroad, amounting to billions annually.
Where a firm is based also influences where capital ultimately gets deployed and which ecosystems grow. A Canadian PE firm with a global mandate is still more likely to invest in Canadian projects than one based in Texas or California. Location shapes networks, deal flow, and future Canadian headquarters.
There is also an asymmetry in regulation. Under ERISA, U.S. pension fiduciaries face personal liability if they hire a non‑SEC‑registered foreign manager, which discourages them from hiring Canadian firms (SEC registration is quite a burden for small firms). Canada has no equivalent barrier; foreign firms can compete freely here. The protectionism is one‑way.
Of course, I am biased—we are trying to win clients. But at equal talent and expected returns, Canadian allocators should consider firms with a strong domestic presence. In our own large plan, the Canadian based alternative managers we hired have performed just as well as foreign ones. We must remain global investors, but even a marginal shift toward local providers—when mandates can be managed from Montreal, Toronto, Calgary, Vancouver, or Halifax—strengthens the Canadian ecosystem and economy.
I thank Vincent for his wise insights and agree with him.
Maple 8 funds have allocated to Canadian private equity and venture capital, not so much to Canadian alpha managers (hedge funds).
In fact, apart from La Caisse which has a seeding/ growth mandate in Quebec to all asset managers, no other Canadian pension fund has an explicit mandate to invest in Canadian hedge funds.
Vincent rightly notes that those fees go right back into the Canadian economy.
I'll publicly plug Trans-Canada Capital here because I think they do excellent work and their absolute return fund is second to none. Well worth looking into them.
That's all from me, the main message here is OMERS does a lot to support the Ontario economy through direct and indirect jobs, through its retired and active members.
And if you really want to appreciate all that OMERS and other large DB plans across Canada do to bolster the domestic economy, listen to the podcast below where Avis Favaro discusses 'aging without dignity', it's sobering.
From going without electricity to relying on food banks, Canada’s seniors are struggling to age with dignity. Data shows that 1 in 5 live at the poverty line, with rent and housing eating up their meagre incomes. As well, 91% of seniors say they want to live at home, but the support isn’t always there — for example, home care may not reach seniors in rural communities.
All of this is leaving our stressed health systems to fill the gap. And the pressure is only growing. In fact, in 2026, Canada officially became a super-aged nation — meaning that at least 20% of the population (1 in 5 people) is age 65 or older.
In this episode, host Avis Favaro speaks with seniors across Canada who are struggling to make ends meet, as well as with Dr. Samir Sinha — a geriatric specialist at the Sinai Health System and an advisor to Canada’s National Institute on Ageing — on why, despite decades of warning, our country seems wholly unprepared to care for our aging population.
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