Officials of the Ontario Municipal Employees Retirement System (OMERS) are thinking of creating some types of “super funds” which are more or less similar to the Ontario Teachers’ Pension Plan. The step is being thought of to cope up with the current economic down slum.
The Ontario pension fund is divided into lots of smaller plans which range from investments in big banks to smaller insurance companies. According to the pension fund officials, these funds “cannot afford to deliver the quality and depth of governance, investment skills and risk management expertise their members need and deserve.”
To cope up with the losses, legislation was introduced through which institutional investors in the public sector and smaller pension plans will be allowed to give their portfolio and the task of managing the pensions to the Ontario Teachers’ Pension Fund.
This is one of the main reasons to create “super funds” which will work more or less similar to the retirement pension fund. The plan was proposed by the Ontario Expert Commission on the Pensions Report. The proposal suggested that the effect of handing the smaller funds to the larger funds will lead to lower investment fees and better in house investment benefits.