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Governance

Our unique governance structure is a key reason for our success. At the heart of our model is a strong, independent Board that ensures we run like a business. Equally important is our joint sponsorship arrangement that gives members and the government shared responsibility for funding the pension plan.

View of office conference room with sunset light in windows

Strong stewardship and leadership

We believe good governance is good business because it helps companies deliver long-term shareholder value. As a plan administrator, we measure ourselves against best practices for governance, internal controls, risk management and stewardship to ensure we deliver long-term value to our members.

Sponsor’s role

The pension plan is jointly sponsored by the Ontario government, through the Minister of Education, and the executive of the Ontario Teachers' Federation (OTF). The OTF represents teachers, while the government represents employers. Together, OTF and the government ensure the plan remains appropriately funded to pay pension benefits, and decide:

  • The contribution rate paid by working teachers (and matched by the government and designated employers)
  • The benefits that members will receive, including inflation protection
  • How to address any funding shortfall or apply any surplus

Board’s role

Our Board, appointed by OTF and the government, oversees the management of Ontario Teachers’. Board members are required to:

  • Act independently of both the plan sponsors and management
  • Make decisions in the best interests of all plan beneficiaries

Learn about the Board

Jo Taylor, President and CEO, Ontario Teachers'

Management’s role

Day-to-day investment management and plan administration is delegated to the President & CEO and his staff.

Management has two main responsibilities:

  • Invest plan assets to help pay pensions
  • Administer the plan and pay pension benefits to members and their survivors

Management sets long-term investment and service strategies that take member demographics and economic, investment and market risks into account.

No employee sits on the Board or its committees.

Our plan sponsors

Governing legislation and policies Governing legislation and policies

Ontario Teachers' is a corporation (without share capital) governed by the Teachers' Pension Act. We must comply with:

  • Ontario's Pension Benefits Act
  • The federal Income Tax Act 
  • Other legislation that applies to registered pension plans in Ontario
  • Legislation in jurisdictions where we do business

The Pension Benefits Act requires pension plan administrators to invest assets with the same prudence expected of a person dealing with another's property. The standards of conduct for a fiduciary are also found in common law.

A Partners' Agreement between the plan sponsors defines the terms of their joint management. This includes the powers and duties of the plan's independent Board.

The sponsors have appointed the Board as trustee of the plan's retirement compensation arrangement, which supplements the basic defined benefit pension plan.

Our core values and Code of Conduct (PDF) guide our Board members and employees. Both demand integrity, accountability and risk consciousness.

Our Statement of Investment Policies and Procedures (PDF) defines our investment strategy and long-term asset mix policy.