A new governance model for the Ontario Municipal Employees Retirement System was announced today by the Ontario government. The legislation, if passed, is intended to give municipal employees and employers more control of OMERS.

The changes are being proposed so as to fulfill Premier Dalton McGuinty’s commitment of full control of OMERS to the employees and employers who contribute to the fund. The new model would create a sponsors corporation made up of employer and employee representatives. The current OMERS board would continue with its duties under the title of the administration corporation.

The new plan would allow the sponsors corporation to tailor pension benefits to meet their needs. A dispute resolution mechanism, like that of the Ontario Teachers’ Pension Plan, has been included in the legislation. The bill is not concrete, it is being proposed that stakeholders have more input into the final bill.

It’s hoped the proposed legislation will be in place by early 2006.