OMER pension status sign of things to come for CPP

http://www.omers.com/corporate/news_article.aspx?newsid=5088

Funding Deficit
The Plan's 2011 funding deficit was $7.3 billion versus $4.5 billion a year earlier.

“Like that of many other pension plans, OMERS funding deficit position primarily reflects the continuing impact of the 2008 global economic downturn and increasing actuarial liabilities due to plan demographic shifts,” said Patrick Crowley, OMERS Chief Financial Officer.

Based on our expected investment returns combined with temporary contribution increases and benefit reductions, we expect the Plan will return to surplus within 10 to 15 years.

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That is some tough love. It'll take a DECADE to recover - even combined with both increased payins and decreased payouts!
I expect this to be the conclusion of the CPP triennial review.
Everybody in charge is still playing dumb. Maybe they are not playing?

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http://www.hrsdc.gc.ca/eng/oas-cpp/reports/2010/page06.shtml

As joint stewards of the CPP, the federal and provincial ministers of finance review the CPP’s financial state every three years and make recommendations as to whether benefits and/or contribution rates should be changed. They base their recommendations on a number of factors, including the results of an examination of the CPP by the Chief Actuary. The Chief Actuary is required under the legislation to produce an actuarial report on the CPP every three years (in the first year of the legislated ministerial triennial review of the Plan). The CPP legislation also requires that the Chief Actuary prepare an actuarial report any time a Bill is introduced in Parliament that has, in the view of the Chief Actuary, a material impact on the estimates in the most recent triennial actuarial report. This reporting ensures that the long-term financial implications of proposed Plan changes are given timely consideration.

Changes to the CPP legislation governing the general level of benefits, the rate of contributions or the investment policy framework can be made only through an Act of Parliament. Any such changes also require the agreement of at least two-thirds of the provinces, representing at least two-thirds of the population of all those provinces. The changes come into force only after two years’ notice, unless all of the provinces waive this requirement, and only after provincial orders in council confirm the changes have been passed.

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http://www.omers.com/investments/news_article.aspx?newsid=3343

Actuarial assumptions indicate OMERS requires an investment return of 6.5% annually to keep assets and liabilities in balance. That rate of return, combined with temporary contribution increases and benefit reductions, will see the Plan return to surplus in 2025. "Based on our asset mix policy and active investment strategy, we believe we can generate average returns of 7% to 11% annually over the next five years. Doing so would return the Plan to surplus between 2015 and 2020 - five to 10 years ahead of schedule," said Patrick Crowley, OMERS Chief Financial Officer.

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D - such CPP 'tough love' is yet to come. And will be some time. The Boomers need to time it right to offload as much of the pain onto GenXYZ as they can, while hogging all the gain for themselves.