Young workers are the most impacted by the OMERS proposal to eliminate guaranteed indexing. We have the most to lose.
Indexing is like getting an annual raise in retirement. It protects our pensions from cost-of-living increases.
If “Shared Risk Indexing” is passed, our service after December 31, 2022 would only have conditional indexing – meaning indexing could, and likely would, be cut. For young workers, that would mean the majority of our working career will have conditional, not guaranteed, indexing. For future young workers that get hired in 2023 and on, they won’t get any guaranteed indexing.
How is this fair, reasonable or equitable? Why don’t we deserve the same pension security?
We’ve been counting on getting a pension with guaranteed indexing to protect against inflation. This would be a huge blow to our future retirement security.
We’ve been paying more, and now we could get less. Young workers have been paying significant OMERS contributions for years so that the Plan will be 100% funded. And OMERS is responding by trying to eliminate guaranteed indexing in the middle of a pandemic.
The vote is June 24th. It will be up to the OMERS Sponsor Corporation Board of Directors to decide. The Board members should answer to OMERS members.
Young workers – speak out! Take action now.