Pension Security
	Q:	Is my future pension secure?
	A:	Yes, your pension is secure. It’s not unusual for pension plans to have shortfalls in some decades and surpluses in others. However, your pension plan is facing ongoing funding challenges because of continuing low interest rates, increasing life expectancy, and a declining teacher-to-pensioner ratio. If required, the Ontario Teachers’ Federation (OTF) and the Ontario government, which sponsor the pension plan, can change contribution rates, pension benefits or both to keep the pension plan balanced. Pensions being paid to retired members and the value of pension benefits earned to date by working members cannot be reduced under Ontario’s Pension Benefits Act.
	Q:	What is protected by law?
	A:	Ontario’s Pension Benefits Act protects the value of the pension benefits you have earned to date. Under this Act, a change in pension plan provisions could affect only that portion of your pension you will accumulate in the future.
	Q:	In the event of a future shortfall, would I be given advance notice if pension provisions change?
	A:	Yes, you would be given notice. The plan sponsors are required to file a balanced funding valuation with the provincial regulator by Sept. 30, 2008. To resolve a shortfall, the OTF and the Ontario government can increase contribution rates, change pension benefits to be earned in future years, or use a combination of the two options.
	Q:	Should I consider retiring now just in case benefit changes are made in the future?
	A:	No, moving up retirement plans because pension plan provisions might change in the future will not result in a higher pension entitlement. Pension benefits you have already earned cannot be taken away.
	Q:	Can a change in the assumptions used to value the pension plan resolve the shortfall?
	A:	Assumptions have a significant impact on funding valuations, and can mean the difference between a shortfall and a surplus. For more information, visit the Assumptions Review section.

	Posted April 2008	TOP