Teachers’ applauds Morneau recommendations, although declining opportunity to manage third party assets
TORONTO - The Ontario Teachers' Pension Plan is pleased to hear the Morneau Report's recommendations for improved efficiency in the investment management of several of the province's smaller pension plans.
Plan management noted that the efficiencies of scale and administrative streamlining that will be realized will result in better returns for these plans' members, which will benefit members and taxpayers alike. These advantages will accrue whether the funds are managed by an existing major pension plan or a new entity established for this purpose.
Jim Leech, Teachers' President and Chief Executive Officer, explained that Teachers', however, will not be availing itself of the opportunity to manage third party funds. "Our success at Teachers' since we were founded 22 years ago is largely due to our single-minded focus on our members and their retirement financing needs. We consider ourselves not an asset manager so much as a liability manager; our investment efforts are driven by the demographic reality, and resulting liability profile, of our membership." He added: "We are not structured to manage third party assets. We believe that the complexities involved in meeting the needs of multiple memberships' liabilities under our governance structure would dilute our investment effectiveness and would not be in our members' best interests."
With $117.1 billion in assets as of December 31, 2011, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada. An independent organization, it invests the pension fund's assets and administers the pensions of 300,000 active and retired teachers in Ontario. For more information visit www.otpp.com
Director, Communications and Media Relations
Ontario Teachers' Pension Plan