The Board of OMERS Administration Corporation has looked into Statistics Canada’s inflation-tracking error and decided it wouldn’t be in the best interest of plan members to challenge the federal government on the issue.
From early in 2001 until March 2006, StatsCan miscalculated one component of the consumer price index (CPI), which raised concerns amongst OMERS retired members because the CPI is used to help set such statistics as pension inflation protection, interest rates and wage increases.
The error resulted in the annual index being off, on average, by 0.1 percentage point over the five-year period. StatsCan won’t fix the error because the cost and repercussions of doing so is considered to be too great.
“The OMERS AC Board carefully considered the whole issue—including obtaining legal advice. It has decided it will take no further action against the government, as it would be expensive to do so and there would be little likelihood of success,” says a statement. “Again, the error averaged 0.1 percentage point annually and it affects all of Canada—not just the OMERS plan and its members.”
To read StatsCan admits past CPI data flawed from Advisor.ca, click here.
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