Message from the Chair and Vice-ChairFor OPTrust, the OPSEU Pension Plan, our sponsors and our almost 84,000 members and retirees, 2012 was a year of significant challenges and important achievements.
Focusing on the fundamentalsLike many large defined benefit pension plans, OPTrust continued to face both volatile investment markets and the impact of extremely low interest rates on projected investment returns. On the other side of the ledger, the long-term cost of membersâ€™ pensions continues to rise as mortality improvements mean that the average member can now expect to collect a pension well into his or her 80s.
Meanwhile, the gradual maturing of the Planâ€™s membership together with a contraction in public sector employment means that the ratio of our active members to retirees continues to decline, reducing the Planâ€™s ability to make up short-term funding shortfalls through increased contribution rates.
Against this backdrop, OPTrustâ€™s Board of Trustees focused on strategic priorities over the year. The goal? To get the fundamentals right, enhance the Planâ€™s long-term sustainability, and strengthen our ability to deliver retirement security for our members and pensioners decades into the future.