Pension Connection | Spring 2024

posting datePosted: May 2024 download documentDownload the PDF print page Print this page Email link to page Email the link

People. Purpose. Pensions.

"At OPTrust, we have a clear purpose – to deliver peace of mind in retirement to our members. For the 15th consecutive year, OPTrust is fully funded, and the people we serve can continue to rely on a secure, sustainable pension."

Peter Lindley
President and Chief Executive Officer

The 2023 Funded Status Report is available on our website.

2023 Highlights

  • OPTrust remains fully funded for the 15th consecutive year
  • Member service rating of 8.7/10
  • $25 billion in net assets
  • 5.3% one-year net investment return
  • 5.00% nominal discount rate
  • Employee resource groups continued to grow and drive culture

In March 2024, we released our 2023 Funded Status Report, People. Purpose. Pensions., which details the Plan’s financial results and funded status. In 2023, OPTrust remained fully funded for the 15th consecutive year and achieved a net investment return of 5.3 per cent. Over the past 10 years, the Plan’s average net investment return is 7.2 per cent.

For members, investment returns account for more than 70 per cent of the benefits they receive in retirement, with more than $1.3 billion in entitlements paid in 2023, benefiting communities across Ontario. Our Member-Driven Investing strategy is designed to deliver the total return needed to keep the Plan sustainable over the long term, without taking excessive risk. The Plan’s average annual net investment return since inception is 7.9 per cent.

Our annual Responsible Investing Report has once again been integrated into the Funded Status Report. In 2023, we made significant progress implementing our enhanced climate change strategy, including calculating the first Total Portfolio carbon footprint, and announcing an interim portfolio decarbonization target of 30 per cent by 2030 in support of achieving a net-zero portfolio by 2050.

“OPTrust’s climate change strategy is designed with one purpose in mind: to protect our pension promise over the long term,” said Peter Lindley, president and CEO.

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In February 2024, the Ontario government repealed Bill 124 which capped salary increases for all public sector workers to 1 per cent a year for three years. As a result, retroactive wage increases are being awarded to various bargaining unit employees including Ontario Public Service Unified, Correctional Services, and LCBO among others.

We’re working closely with employers to receive updated salary information and pension contributions for all members of the OPSEU Pension Plan impacted by the retroactive wage increases. The timing of this information may differ by employer, resulting in varying timelines for members to see adjustments to their pension benefits.

Over 61,000 members and former members are currently impacted. We kindly ask for your patience as we recalculate and process the volume of adjustments to pension benefits.

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Our Legal Services team was nominated for the Banking & Financial Institutions Law Department of the Year award at the annual Canadian Law Awards, and was awarded an Excellence Award in the same category.

The Canadian Law Awards honours outstanding achievements in the Canadian legal profession. Now in its fifth year, this awards ceremony recognizes law firms and in-house legal departments alike.

This nomination is a testament to the incredible work our Legal Services team does.

Last September OPTrust welcomed Legal Aid Ontario as the newest employer, whose roughly 500 employees joined our Plan under the primary schedule. As a result, Legal Aid employees moved from a defined contribution plan to a defined benefit (DB) plan. One of the many benefits of a DB plan is members can enjoy a guaranteed income for life once they retire.

For the period April 1, 2024, to March 31, 2025, premiums for Legacy (169494) and Retiree Focused (members paying 100% premiums - 169974) group insurance plans have increased. Premiums for the Optional Upgrade Plan (OUP) for Legacy Plan members have also increased.

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Retired on or after January 1, 2017

Retired before January 1, 2017