Ontario Teachers' Pension Plan

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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, making it one of the largest and most powerful investment groups currently operating in Canada. The plan is a multi-employer pension plan, jointly sponsored by the Government of Ontario and the Ontario Teachers' Federation.

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[edit] History

The OTPP was established on the date of 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 last President and Chief Executive Officer, Claude Lamoureux, had served in that capacity since OTPP's founding. Lamoureux retired on December 1, 2007 and was succeeded by Senior Vice President of Private Equity (aka Teacher's Merchant Bank), 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 having reported $108 billion in net assets on December, 31, 2007.[1] It has an excellent track record for investment performance with an 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. Despite strong investment performance, the pension plan has experienced shortfalls in recent years, requiring contribution increases for working teachers. The plan reported a $12.7 billion funding shortfall as of April 1, 2008 in its most recent annual report.[2]

[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 Bell Canada (BCE), Samsonite, Maple Leaf Sports & Entertainment, Maple Leaf Foods, Parmalat Canada, Doane Pet Care, Shoppers Drug Mart, and Worldspan. In 2006 it acquired a 20% stake in CTVglobemedia.[3] In July 2007 Teachers' lead a group to take over Canadian telecommunications giant BCE Inc. (Bell Canada) private. The C$35.1 billion deal (C$51.7 billion including assumed debt) would be the biggest leveraged buyout in global history, according to Thomson Financial.[4]

[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 humorously contrasted the plan's benefactors (i.e. teachers) with the investments the plan had made, including shopping malls and the tobacco industry.[5]

[edit] References

  1. ^ Fast Facts. Ontario Teachers' Pension Plan. Retrieved on 2007-06-07.
  2. ^ As teachers age, big Ontario pension plan comes up short. CBC News. Retrieved on 2008-04-02.
  3. ^ Ontario Teachers' Pension Plan (2 December 2005). "Woodbridge and BCE Announce New Ownership Structure for Bell Globemedia". Press release. Retrieved on 2006-06-22.
  4. ^ http://www.forbes.com/feeds/ap/2008/05/19/ap5027073.html
  5. ^ Rick Mercer Report, CBC Television (12 January 2004). "Ontario Teachers Know All About Synergy". Press release. Retrieved on 2006-11-26.

[edit] External links