(January 18 – 11:50 ET) – OMERS announced today that its investment assets grew by almost $1 billion last year, according to preliminary results.

Dale Richmond, OMERS president and CEO, announced that the fund’s assets grew to $ 36.4 billion in 2000. Since members and employers paid no contributions last year and over 80,000 pensions were paid from the fund’s investment program, growth can be fully attributed to the plan’s successful investment strategy.

Based on preliminary results, OMERS annualized return over the last five years is about 13%, well above the 7.25 % actuarial rate of return needed to pay future pensions.

“Even in a very volatile year for the markets — and after paying out over $900 million in pensions — the fund grew by close to a billion dollars,” said Walter Borthwick, chairman of the OMERS board. ” Coupled with the excellent returns of prior years, the fund is well-positioned to continue to provide competitive pension benefits and keep contribution rates low. In fact, since August 1998, members and employers have paid no contributions, saving them and Ontario taxpayers about $1 billion a year.”

Final 2000 results will be available upon release of the plan’s annual report, expected in April.

OMERS is one of the largest pension plans in Canada. The jointly managed board oversees pension services for the more than 1,000 local government employers and 280,000 active and retired members who participate in the plan.
-IE Staff