Message from the Chair and Vice-Chair (continued)
Working with our sponsorsOver the year, OPTrust provided technical advice and support to OPSEU and the Government of Ontario, in their role as plan sponsors, as they discussed ways to stabilize contribution rates, address funding risks and ensure the Planâ€™s long-term sustainability.
The result is a funding framework agreement between the sponsors that caps member and employer contribution rates at current levels for a period of five years. If a deficit is identified in a funding valuation filed with Ontarioâ€™s pension regulator during the freeze period, the shortfall must be made up by reducing the benefits active members will receive for their future service, up to a certain limit, before any contributions could be increased.
The framework agreement also maintains and reinforces OPTrustâ€™s joint sponsorship governance model, which ensures that OPTrustâ€™s members and the government have an equal voice in key decisions affecting the Plan.
OPTrust continues to support discussions between the sponsors on options to stabilize and expand the Planâ€™s active membership. As a result, the sponsors signed an agreement in early 2013 to allow eligible groups whose jobs are affected by divestments from the Ontario Public Service to continue contributing to the Plan. The agreement also establishes a process to permit new employee groups in the broader public sector to join the Plan, subject to the approval of the Minister of Finance and the Board.