OMERS, the pension fund for Ontario municipal workers, said today it earned 16% on investments in 2005.

The “exceptional” returns “combined with the continued strength of global equity markets contributed to another strong year,” said OMERS president and chief executive Paul Haggis.

“Our asset mix strategy is working and we remain committed to increasing our asset allocation in private market investments.”

The pension fund plans to double private investments to 37.5% of total assets because it expects them to outperform traditional stocks and bonds over the long term.

OMERS represents about 365,000 active and retired municipal employees in Ontario.

OMERS said total income from private equity investments was 23.2% last year, compared to 12.5% in 2004.

Infrastructure investments provided a return of 23.2% in ‘05, compared to 31% a year earlier. OMERS’s real estate investments recorded a return of 26% in 2005, and 11% in 2004.

However, the actuarial deficit in the basic plan, as projected, increased to $2.8 billion by year end, based on actuarial assets of $38.3 billion subtracted from actuarial liability of $41.1 billion.