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< page 37 of 44 > |
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The Member Services division interacts with pensioners, working teachers, inactive members, school boards and other designated employers: our customers. To them, this team is the face of the Ontario Teachers’ Pension Plan.
This team is also an information powerhouse, taking in and processing billions of dollars of contributions and millions of pieces of personal information every year while administering the timely payment of pensions to 108,000 retirees and survivors – one of Canada’s largest payrolls.
With pensioners living longer, pensions are being paid over a longer period than before. The average age at retirement was 58 for new retirees in 2007, with an expected 31 years on pension and a survivor pension paid for an additional five years. This implies that half the teachers who retire each year will live at least into their late 80s. Currently there are approximately 9,300 pensioners in their 80s, 2,300 pensioners in their 90s, and 83 are age 100 or older.
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The average age for pensioners was 68 and for teachers was 42 at year end. Pensioners are living longer; currently 2,400 pensioners are 90 years of age or older, compared to 2,300 in 2006.
We expect 48,300 teachers to retire over the next 10 years. The number of pensioners will continue to grow, both in absolute terms and as a percentage of total plan membership. The ratio of active members to retirees could reach 1.2:1 in a decade. |
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Plan membership totalled 353,000 at year end, comprising 170,000 working teachers, 108,000 retirees and survivors, and 75,000 inactive members. Approximately 9,700 teachers entered the profession or were re-hired during the year and 5,200 new retirees began collecting retirement or disability pensions. The number of pensioners has grown every year since 1917. The average pension for a teacher retiring at the 85 factor – years of age plus eligible service – was $41,300 in 2007.
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The total number of pensioners grew by 4,000 in 2007. Active members increased by 3,000. Since 2004, we have located 19,500 inactive members, who taught briefly between 1950 and 2000, and we repaid their money with interest. |
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We deal with about 200 school boards and designated employers, whose administrative systems vary widely in practice and sophistication. In 2004, we began asking school board finance officers to certify that contributions and information delivered to us were correct both in terms of timely remittance and application of the plan’s rules – just as a public company’s CEO and CFO would certify its financial statements. This proved invaluable in getting administrators to focus on what, to them, is simply one payroll deduction.
Our organizational structure has changed so that each employer deals with the same person at Teachers’. This person gains detailed understanding of the employer’s payroll system and practices, and serves as a conduit for feedback. This past year we increased our programs for employers. Teachers’ employees conduct workshops throughout Ontario, helping employer personnel master the pension reporting requirements and online technology we provide. Employers – particularly those under staff and funding constraints – appreciate this hands-on assistance, rather than a constant barrage of memos and information validation requests. This program, in combination with system enhancements, has increased online use and reduced the volume of fax correspondence. |
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