Statistics

• 173,000 teachers in elementary and secondary schools in Ontario
• 111,000 pensioners – includes survivor pensions
• Plan originally created in 1917
• One of Canada’s largest payrolls, paying $4.2 billion in pension benefits annually

Financial

• Net assets: $87.4 billion (December 31, 2008)
• Rate of return: 2008 = -18%; four-year average = 3.3%; since 1990 = 9.6%
• Asset-mix policy at January 1, 2009: 40% equities (public and private companies, derivative contracts), 15% fixed income, 45% inflation-sensitive (real estate, real-return bonds, infrastructure and timberland, commodities)
• Until 1990, all funds invested in non-marketable Ontario debentures

Operation

• Mandate: to administer the pension plan and manage its investments to earn the best possible rate of return at an appropriate level of risk
• Co-sponsored by the Ontario government and the Ontario Teachers’ Federation (OTF) with authority for plan changes delegated to the six-member Partners’ Committee
• Overall policy direction provided by nine board members, four appointed by the Ontario government and four by OTF, with a jointly selected chairperson
• Responsibility for day-to-day management delegated to Chief Executive Officer, Jim Leech, and his staff of approximately 750
• Provide services directly to all members and employers
• Regular communications for members: Report to Members, Pensionwise newsletter and Personal Statement of Benefits to teachers, and Pension News to pensioners
• Websites: www.otpp.com, news and reference material; members can access their personal pension file and use various tools on iAccess Web, a secure member website

Benefit Design

• Defined benefit plan: 2% x years of credit x average “best-five” salaries = annual pension 
• Unreduced retirement with 85 factor (age plus qualifying years = 85)
• Partial years count as full years for determining the 85 factor, except for the first and final year of teaching
• Members can repay refunds and buy back service for leaves – cost is contributions plus interest and teachers have five years from the end of the leave to complete the purchase
• Partially integrated with CPP
• Indexed up to 8% per year based on changes in CPI, with carry-over provision
• Indexation is 100% of CPI for pension credit earned until the end of 2009 and 50% to 100% of CPI, depending on the plan’s financial status, for pension credit earned after 2009

Contributions

• Average 11% of earnings in 2009
• The Ontario government and designated private schools and organizations match the teachers’ contributions

Legislation

• Teachers’ Pension Act (Ontario)
• Income Tax Act (Canada)
• Pension Benefits Act (Ontario)

This information is updated each April when we publish our annual report.