New Ontario teachers get lesson in pensions

Low interest rates, longer life expectancy results in liabilities outstripping assets: OTPP
By Sheryl Smolkin
|Canadian Labour Reporter|Last Updated: 04/15/2013

Changes to the inflation protection provisions of the Ontario Teachers’ Pension Plan (OTPP) for service after 2013 agreed upon by the Ontario Teachers’ Federation (OTF) and the Ontario government in February pave the way for the elimination of a $9.6 billion funding shortfall, projected at the beginning of 2012.

However, removing guaranteed indexing for future service could have a disproportionate impact on new teachers.

The OTPP earned 13 per cent in 2012 and beat all of its benchmarks. CEM Benchmarking has also ranked the plan first among international and North American pension systems for the last three years.