• 1. Is my pension safe?

Current Ontario legislation protects the value of pension benefits already earned by working and retired members. Only contribution rates and pension benefits to be earned in future years can be adjusted during a teacher’s career in response to funding shortfalls.

It’s important to remember that your Teachers’ pension is not dependent on any one year’s investment results or the value of the pension fund when you retire. Your pension is defined by a formula based on years of credited service and average earnings.

• 2. Could the government change the legislation that protects the benefits I’ve already earned?

We cannot speculate on that. Only the government can change legislation.

Keep in mind that the Ontario Teachers’ Federation (OTF) and the Ontario government have several options for dealing with funding shortfalls. They could:

• increase contribution rates;
• invoke conditional inflation protection for pension credit earned after 2009;
• reduce pension benefits member will earn in future years; or
• adopt a combination of these options.

• 3. Is the pension plan running out of money?

No, the pension plan has $107.5 billion, enough to pay pensions for many years.
But funding challenges persist when we look out 70 years or more. That’s how long the pension plan needs to be funded to pay benefits promised to all current members and their survivors.

• 4. Are teachers’ pensions protected by the Pension Benefits Guarantee Fund?

No, teachers’ pensions are not covered under this Ontario government fund. The Pension Benefits Guarantee Fund provides minimum guaranteed pensions under certain conditions to employees belonging to pension plans of insolvent companies in Ontario. The Ontario government, the ultimate employer of teachers, is not a company at risk of insolvency.

In the Teachers’ pension plan, members and the government as well as other participating employers, share surplus funds and responsibility for making up shortfalls.