Message from the President and CEO (continued)

A fully funded plan

The Plan’s successful 2012 funding valuation marks a milestone in our strategy for managing through the $2.4 billion investment loss the Plan experienced during the 2008 financial crisis. Four years later, three key factors have allowed us to ensure the Plan remains fully funded. These include:
  1. the sponsors’ decision to gradually increase members’ and employers’ contribution rates by 3% of salary
  2. OPTrust’s strong investment returns over the past four years, and
  3. the Plan’s $852 million in rate stabilization reserves.
These reserves, which the sponsors have prudently set aside from past funding gains, are enough to cover the current $818 million deficit. As a result, the Plan had a total surplus of $34 million at December 31, 2012.

Finally, OPTrust’s member and pensioner services staff continue to deliver high-quality, personalized service to our membership. In 2012, we completed more than 55,000 pension transactions, answered more than 48,000 phone calls and responded to almost 4,000 secure messages from our clients. Over the year, we met our target client satisfaction rating of 8.6 out of 10, despite the impact of legislated plan changes, which increased processing times for a number of pension transaction types.