Speaking of Pension... (OTF Report)
Earlier this year, the Ontario Teachers’ Pension Plan (OTPP) and our government partner developed the first of two surveys — one to be carried out this school year and one next school year. This task came about as a result of the last valuation filing of a balanced pension plan in September 2011. These surveys are meant to inform all of the parties as to “who we are” as a group of members, “what we understand about our pension,” “what we, the Partners [OTF and the government] need to do to ensure that members understand various aspects of their pension plan,” and “what is likely to drive retirement behaviour now and in the future.” The first wave of surveys is now complete. Many ETFO members participated in the focus groups or in the telephone survey, and we thank you for taking the time to do so — your input is valuable!
The survey firm Pollara was contracted to conduct this work. They ensured that all groups of members were included, which means that full-time, part-time, and occasional teachers participated. It also means that new, mid-career, and those approaching retirement were solicited for their input. While the results have not yet been made public, I encourage you to take this opportunity to reflect on what you know about your pension, what aspects of it you feel you need more education about, and what might drive your decision to retire when such time comes. As well, seek answers to your questions by visiting the OTTP website, otpp.com, the OTF website, www.otffeo.on.ca, and our own website, etfo.ca.
Some interesting pension facts
It is common knowledge that there are nearly as many retired teachers receiving their pensions as there are active teachers contributing to the Plan.What does this mean for the Plan and how do the Partners understand these demographics? As a result of the last valuation filing, a Demographic Task Force was established to examine these questions and many others. The OTF Executive appointed me to this task force on your behalf.
I can tell you that we, the members of the Plan, are a very interesting group! Longevity, also known as mortality, is a key factor for the Plan. Teachers are living longer all the time. In fact, we are outdistancing the general population! Did you know that centenarians (100 years of age and older) are the fastest-growing demographic in North America, expanding at the rate of approximately 8 percent per year? There are more than 2,300 Plan pensioners over 90. As of December 31, 2011, the oldest retiree collecting her pension was 109! Given this small snippet of demographic reality, I invite you to consider what your retirement will look like regardless of where you are in your career. Chances are good that you will have a very long and productive retirement and it’s never too early to start making plans!