November 07, 2013
The Ontario Teachers' Pension Plan (Teachers') applauds the Ontario government's numerous initiatives to provide greater retirement income security. In particular, Teachers' supports the government's willingness to develop regulatory amendments to update the Pension Benefits Act. This sends a strong signal that recognizes the important role the province's major pension funds play in Ontario's economy.
Teachers' is especially pleased with today's announcement by the Ontario government that it plans to provide an exemption for the so-called "10% rule", i.e. Section 9 of Schedule III of the Federal Investment Regulations as it applies to certain government-issued securities, for example US Treasury Inflation Protected Securities. These investments will assist us in ensuring the long-term sustainability of our Plan. We look forward to working with the Ministry on these new regulations.
Teachers' is also glad to see the Ontario government providing an exemption to one of the barriers (30% rule) to our investment in provincial public infrastructure projects.
These moves break a log jam that has been hampering Teachers' ability to capitalize on investment opportunities and to have more flexibility to match plan liabilities, which is important to funds of our size and complexity.