March 19, 2009
TORONTO - Ontario Teachers' Pension Plan (Teachers') has provided suggestions to the Canadian government as it considers the legislative and regulatory framework for private pension plans.
Teachers' addresses the issues of pension funding and coverage, investment rules and tax issues in its submission to the Department of Finance.
Teachers' is a provincially regulated pension plan. "As a large plan administrator, as well as a significant investor and shareholder, we are interested in the issues facing pension plans sponsored by federally regulated companies," said Jim Leech, President and CEO. Teachers' is also subject to pension investment rules in Ontario that are adopted by direct reference to the investment rules under the federal Pension Benefits Standards Act, 1985 (PBSA).
On the subject of pension funding, Teachers' notes that the private sector shift to defined contribution plans has not been widely recognized for the social costs that this trend will likely impose in the future. If members of such plans retire with inadequate retirement incomes, this could result in obligations on future governments.
Even more troubling is the lack of occupational pension plan coverage among Canadians generally, and this requires national attention.
Teachers' presentation to the Department of Finance is available on the Submissions page.
About Ontario Teachers' Pension Plan
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 284,000 active and retired Ontario teachers.
Director, Communications and Media Relations
Ontario Teachers' Pension Plan