Statistics

• 180,000 teachers in elementary and secondary schools in Ontario
• 120,000 pensioners – includes survivor pensions
• Plan originally created in 1917
• One of Canada’s largest payrolls, paying $4.7 billion in pension benefits annually

Financial

• Net assets: $117.1 billion (December 31, 2011)
• Rate of return: 2011 = 11.2%; four-year average = 4.2%; since 1990 = 10.0%
• Actual asset mix at December 31, 2011: 44% equities (public and private); 48% fixed income; 5% commodities; 22% real assets (real estate, infrastructure, timberland); 11% absolute return strategies; -30% money market.
• Until 1990, all funds invested in non-marketable Ontario debentures

Operation

• Mandate: To administer the pension plan and manage its investments to earn the best possible rate of return at an appropriate level of risk
• Co-sponsored by the Ontario government and the Ontario Teachers’ Federation (OTF) with authority for plan changes delegated to the six-member Partners’ Committee
• Overall policy direction provided by nine board members, four appointed by the Ontario government and four by OTF, with a jointly selected chairperson
• Responsibility for day-to-day management delegated to Chief Executive Officer, Jim Leech, and his staff of more than 800
• Provide services directly to all members and employers
• Regular communications for members: Report to Members, Pensionwise newsletter and Personal Statement of Benefits for teachers, and Pension News for pensioners
• Members can also get news and updates about the pension plan at www.otpp.com and access their personal pension file on iAccess™ Web, a secure member website

Benefit Design

• Defined benefit plan: 2% X credit X average salary in best five years = annual pension 
• CPP reduction: 0.45% X years of CPP credit X five-year average of CPP earnings ceiling or average salary, if less
• Unreduced retirement with 85 factor (age plus qualifying years = 85)
• Partial years count as full years for determining the 85 factor, except for the first and final year of teaching
• Members can repay refunds and buy back service for leaves – cost is contributions plus interest and teachers have five years from the end of the leave to complete the purchase
• Indexed up to 8% per year based on changes in CPI, with carry-over provision
• Indexation is 100% of CPI for pension credit earned until the end of 2009 and 50% to 100% of CPI, depending on the plan’s financial status, for pension credit earned after 2009

Contributions

• Average 11.5% of earnings in 2012
• The Ontario government and designated private schools and organizations match the teachers’ contributions

Legislation

• Teachers’ Pension Act (Ontario)
• Income Tax Act (Canada)
• Pension Benefits Act (Ontario)

This information is updated each April when we publish our annual report.