Pension Connection | Spring 2022

posting datePosted: June 2022 download documentDownload the PDF print page Print this page Email link to page Email the link

MOVING FORWARD

"OPTrust’s vision is to deliver peace of mind in retirement for our members, to invest sustainably for the long-term health of the Plan and to create an inclusive and fulfilling work experience for our people. In 2021, we delivered on that vision by making meaningful progress towards a more inclusive workforce, investing in a risk-efficient manner, and maintaining our fully funded status for the 13th consecutive year."

Peter Lindley
President and Chief Executive Officer

  • OPTrust remains fully funded for the 13th consecutive year
  • 8.8/10 average member satisfaction score
  • 15.3% one-year net investment return
  • 8.9% 10-year average net investment return (2011-2021)
  • Over $25 billion in net assets
  • Welcomed our 50th new employer to OPTrust Select, growing membership to over 1,700

OPTrust recently released the 2021 Funded Status Report, Moving Forward, which details the Plan’s financial results and fully funded status.

The role of a pension plan is to look beyond the short term and into the future to pay pensions for generations of Ontarians.

While the impact of the global pandemic will be felt for years, the Plan has continued to move forward by focusing on our members so they can have peace of mind in retirement knowing their pension is secure.

In 2021, OPTrust achieved a net investment return of 15.3 per cent and lowered its discount rate to 2.85 per cent, net of inflation, from 3.0 per cent in 2020. Over the past 10 years, the Plan’s average net investment return is 8.9 per cent. The Plan was fully funded for the 13th consecutive year.

OPTrust recognized two significant growth milestones in 2021 – surpassing 100,000 members and welcoming the 50th new employer to OPTrust Select. Additional highlights include the development of a robust Inclusion, Diversity and Equity strategy, establishing more integrated and measurable approaches to responsible investing across our investment portfolio, and delivering over a billion dollars in pension benefits to retirees across hundreds of Ontario communities.

The OPTrust team continued to provide an exceptional service experience to members. In 2021, members and retirees rated their service satisfaction as 8.8 out of 10.

You can find all the details in the Funded Status Report here.

Public sector pension plans like ours aren’t just good for the retirees who have them. The economic activity from the operations of Canada’s public sector pension plans, as well as retirees spending their income from those plans, supports 877,100 jobs and 55,500 businesses, with $33.1 billion in annual wages and $21.4 billion in tax revenue, according to a recent report.

Find out more on this, and other good news from the pension world, on our People for Pensions site.

With growing attention from regulatory bodies and rising expectations on disclosure, there is an increasing emphasis on environmental, social and governance (ESG) factors in the investment industry. OPTrust is committed to continually advancing our ESG integration practices as standards evolve and this area grows in importance for our members and other stakeholders.

On June 14, OPTrust released its 2021 Responsible Investing Report: A Collective Commitment along with reporting on progress against the Taskforce for Climate-related Financial Disclosure (TCFD) framework. These reports detail our responsible investing activities, as well as a look at what’s to come, including addressing climate change.

Read OPTrust’s full 2021 Responsible Investing Report and TCFD Report.