Members of the Ontario Teachers’ Pension Plan are promised defined retirement benefits for life.
The pension plan’s investment managers produced above-benchmark returns in 2007 to help keep the pension promise.
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4.5% annual return compared to a 2.3% composite benchmark |
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$4.7 billion in investment income earned, growing net assets to $108.5 billion |
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$2.3 billion in value added above the fund’s composite benchmark |
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| The Member Services team continued to provide the high-quality service members have come to expect. |
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9 out of 10 quality service rating |
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29% increase in usage of online services |
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costs contained in 2007 |
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Demographic factors are putting pressure on pension funding and constraining the amount of risk the pension fund can take to earn returns required to cover the cost of future benefits.
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only 1.6 working teachers for each retiree |
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$1.9 billion more in benefits paid than contributions received in 2007 ($4.0 billion paid, $2.1 billion received) |
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a typical new retiree in 2007 will have worked for 26 years, and is expected to collect a pension for 36 years (including the pension paid to a survivor) |
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$12.7 billion preliminary funding shortfall under the current Funding Management Policy |
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