Ontario’s government has appointed businessman and corporate director Robert Poirier to lead a review of governance at Ontario Municipal Employees Retirement System, choosing a board member from one of the pension fund’s critics.
The province has handed Mr. Poirier a 10-month mandate to examine the effectiveness of the model for governing OMERS, which is steered by two boards of directors, and whether it has engaged clearly enough with its members.
Mr. Poirier is the chief executive officer of NeuState Advisory, a firm he founded, and a former executive in the pensions division of asset manager State Street Corp. He was the long-time chair of the Toronto Port Authority and, earlier in his career, advised a committee of Canada’s Senate on issues that included the creation of major public-sector pension funds such as the Public Sector Pension Investment Board.
Until last month, he was also a board member at transit agency Metrolinx – one of multiple OMERS employers that wrote to Ontario’s government in June asking for an urgent review of the pension fund’s governance structure.
Ontario’s Municipal Affairs and Housing Minister Paul Calandra ordered the review in August. He was responding to pressure from associations representing OMERS members that complained to government about the pension fund’s governance, including a perceived lack of transparency from one of the pension fund’s two boards.
The review’s mandate is similar to one that former senior public servant Tony Dean followed in 2012 when he led the last provincial review of OMERS governance.
A spokesperson for Mr. Calandra, Justine Teplycky, said Mr. Poirier was screened by the Office of the Integrity Commissioner of Ontario before his appointment was finalized, and resigned his Metrolinx board seat on Nov. 20 – two days before he was appointed to lead the review.
“Mr. Poirier is well-positioned to lead the review with his advanced understanding and familiarity with pension plan governance and administration, as well as strong executive leadership skills,” Ms. Teplycky said in an e-mailed statement. “He will undertake a governance review of OMERS to ensure that its governance model is serving the interests of plan members in a fair, equitable, and transparent manner that supports the plan’s long-term financial sustainability.”
Mr. Poirier declined to comment and directed questions to the province.
The target of the members’ complaints, which were spearheaded by associations representing police and firefighters, has been the Sponsors Corporation (SC) board at OMERS. It makes board appointments, sets benefits and contributions, and monitors the plan’s long-term health.
A separate Administration Corporation (AC) board oversees the fund’s investments, plan valuation and pension administration.
The chair of the AC board, George Cooke, welcomed Mr. Poirier’s appointment in a statement.
“We are supportive of the review and see it as the right forum to build on the governance work initiated by the 2012 review,” Mr. Cooke said. “We are committed to fully cooperating with Mr. Poirier, and all stakeholders, to ensure we deliver the best possible outcome for our 628,000 members across Ontario.”
Some OMERS members felt the SC board had blindsided them with planned changes to contribution rates starting in 2027 that will require certain employees to pay more into the plan, though about 70 per cent of members will pay the same or lower amounts. Police, firefighters and other employees who earn more than $90,000, as well as some employers, will pay higher contributions – about $15 to $20 more per pay period for most police officers.
In a letter to Ontario Premier Doug Ford dated June 20, 2024, and reviewed by The Globe and Mail, Metrolinx board chair Donald Wright raised the contribution issue and wrote that “my fellow Board members and I” have growing concerns about the pension fund manager, including a perceived lack of consultation by OMERS on governance matters that affect employees’ financial futures.
Mr. Poirier was a Metrolinx board member at the time the letter was written, which could raise questions about his impartiality as the review’s leader. But the heads of two police associations that asked for the review welcomed Mr. Poirier’s appointment.
“We do not have any concerns about the appointment at this time, and have had no past involvement with Mr. Poirier,” said Clayton Campbell, president of the Toronto Police Association, in an e-mailed statement. “We’re eager to have the review get started and look forward to meaningful changes that will benefit our members.”
Police Association of Ontario president Mark Baxter said in an e-mailed statement that he hopes the review will make the OMERS SC board “more transparent and accountable to members.”
“Mr. Poirier is a qualified business person who has sat on many successful boards and we look forward to supporting his work with this review,” Mr. Baxter said.
Mr. Poirier was appointed on Nov. 22, according to a government notice. He has until Sept. 19 to complete his work, though he could finish sooner. According to the notice, he will be paid a per-diem rate of up to $1,500 for a maximum of 235 days, with total potential compensation capped at $352,500.
The current review will not cover the financial sustainability of the plan or OMERS’s investment performance, nor will it revisit the proposed changes to contribution rates.