The Ontario Teachers’ Pension Plan is a defined benefit plan co-sponsored by the Ontario government through the Ministry of Education, and the Ontario Teachers’ Federation (OTF) representing plan members. The plan sponsors are equally responsible for plan gains and losses. A six-member Partners' Committee is responsible for setting contribution rates and benefit levels in the plan.
Pension benefits for teachers are comprised of two components. The basic plan is a defined benefit pension plan registered under the Pension Benefits Act (Ontario) and the Income Tax Act (Canada). The supplementary plan is a retirement compensation arrangement (RCA).
A pension plan has existed for Ontario teachers since 1917. Until 1990, the plan was administered by the Ontario government and restricted to investing in non-marketable Government of Ontario debentures.
| The provincial government created the Ontario Teachers' Pension Plan Board as an independent corporation in 1990. Together, the plan’s board members and management have the following key responsibilities: |
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invest the plan’s assets |
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administer the pension plan and pay members and their survivors the benefits promised |
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report on the plan’s funding status |
The Pension Benefits Act (Ontario) defines fiduciary duties for all pension plan administrators in Ontario and obliges them to administer the plan and invest assets with the same prudence expected of a person dealing with another's property. The standards of conduct expected of a fiduciary are also set out in common law. Day-to-day management is delegated by the board members to a chief executive officer and his staff. The board has acknowledged its oversight responsibilities in its mandate.
