Ontario Teachers' Pension Plan
From Wikipedia, the free encyclopedia
The Ontario Teachers' Pension Plan (OTPP), commonly referred to as Teachers', is the organization responsible for administering pensions for public school teachers of Ontario. The OTPP also invests the plan's pension fund. The plan is a multi-employer pension plan, jointly sponsored by the Government of Ontario and the Ontario Teachers' Federation.
Contents |
[edit] History
The OTPP was established on December 31, 1989. Prior to this, Ontario teachers' pensions had been sponsored solely by the Ontario government. Assets of the plan had been invested in government bonds only.
[edit] Organization
Today, the OTPP administers the pensions for some 167,000 teachers, principals, and school administrators, and pays pensions to some 104,000 retirees.
The President and Chief Executive Officer is Claude Lamoureux who has served in that capacity since OTPP's founding. Lamoureux will retire on December 1, 2007, to be succeeded by Senior Vice President of Private Equity (aka Teacher's Merchant Bank), James F. "Jim" Leech. The Chair of the Board is Eileen Mercier.
[edit] Finances
The Ontario Teachers' Pension Plan is one of Canada's largest institutional investors with $106 billion in net assets. It has an excellent track record for investment performance: average annual return of 11.8% since it began investing in capital markets in 1990. It is the largest single-profession pension plan in Canada. As of Dec., 31, 2006, OTPP had $106.0 billion in net assets.[1]
Despite strong investment performance, the pension plan has experienced shortfalls in recent years, requiring contribution increases for working teachers. The plan reported a $17.4 billion funding shortfall as at January 1, 2007 in its most recent annual report.
[edit] Ownership
The OTPP maintains a prominent role as one of Canada's largest investors, owning investments across Canada. Through its fully owned subsidiary Cadillac Fairview, the OTPP owns properties including the Toronto-Dominion Centre, Toronto Eaton Centre, and the Rideau Centre in Ottawa. Through its investment arm, Teachers' Private Capital, the OTPP owns or has interests in companies such as Samsonite, Maple Leaf Sports & Entertainment, Maple Leaf Foods, Parmalat Canada, Doane Pet Care, Shoppers Drug Mart, and Worldspan. It recently acquired a 25% stake in CTVglobemedia.[2]
[edit] Media coverage
Comedian Rick Mercer had a short segment about the Ontario Teachers Pension Plan in a January 12, 2004 episode of his show, The Rick Mercer Report, in which he humourously contrasted the plan's benefactors (i.e. teachers) with the investments the plan had made, including shopping malls and the tobacco industry. [3]
[edit] References
- ^ Fast Facts. Ontario Teachers' Pension Plan. Retrieved on 7 June, 2007.
- ^ Ontario Teachers' Pension Plan (2 December, 2005). "Woodbridge and BCE Announce New Ownership Structure for Bell Globemedia". Press release. Retrieved on 22 June, 2006.
- ^ Rick Mercer Report, CBC Television (12 January, 2004). "Ontario Teachers Know All About Synergy". Press release. Retrieved on 2006-11-26.
