Pension Survey Planned for April (OTF Report)

In April some of you will be asked to take part ina survey about your preferences should there be another shortfall in the Ontario Teachers’ Pension Plan (OTPP).

The  OTPP,  OTF  and  the  Government  of Ontario have hired a  polling firm  to  conduct this survey of Plan members to seek their input on possible future Plan changes. The discussions that concluded last year around the contribution increases included an agreement to  conduct a membership survey and an expert review of the assumptions.

Over  the   last   decade,  our demographics   have   changed significantly. Currently, just over half  – 51 per cent – of the Plan membership has 10 years or less experience in the Ontario Teach- ers’  Pension  Plan.  These mem- bers likely have little first-hand knowledge of what inflation can mean for financial stability. I will always remember the shock and horror that I felt as a young teacher when I learned that some of our retired  members depended on funds from their  federation  to  supplement  their  monthly pension  cheques.  Unfortunately, those  retirees did not qualify for indexation as today’s members do.

It is critical for Plan members to be informed when they are surveyed. For that reason OTF launched a  communications initiative to make members  aware  of  their  entitlements  and  the changes to their Plan.

OTF  unveiled  its  pension  communication strategy in November at a meeting of all of the presidents of  the  affiliated teacher federations. It is a rare occasion that OTF calls such a meeting. However, given the recent changes to your pension plan contribution rates, OTF felt a pension  education  program  for  all  members  was essential.

Presidents attending the  November meeting received copies of  OTF’s CD and booklet that deal with pension issues. In December each local received enough copies for every school in their region. Hopefully, you have had an opportunity to view the CD Looking Ahead – What About My Teacher’s Pension? If you have not had access to this resource, please contact your school steward or local president.

Negotiating changes to the pension plan consumed a good deal of OTF’s energy last year. These changes were necessary because the law requires that a valuation filed with the Financial Services Commission of Ontario (FSCO) demonstrates a fully funded pension  plan.  In  other  words, the Plan’s assets must match or exceed the liabilities. The 2005 valuation was balanced by revising the assumptions and increasing the contributions of members and the government.

The first scheduled increase of 2 percent went into effect on January 1. The next increase of 0.3 percent will occur January 1, 2008, and the final increase of 0.8 percent will go into effect Janu- ary 1, 2009. The amount of this  final increase depends on  a  financial review of  the  Plan  in 2008.

I  know  that  your  lives are  extremely hectic but I urge each of you to find the time in your busy schedules to avail yourselves of the Looking Ahead CD and handbook. Both can be downloaded from the OTF website otffeo.on.ca.