Ontario Pension Board Explained

The Ontario Pension Board (OPB) is a government agency responsible for regulating and overseeing pension plans in Ontario. It's a vital part of ensuring that Ontarians have a secure retirement.

The OPB was established in 1965, and since then, it has played a crucial role in protecting the pension rights of plan members.

Your pension benefits are an essential part of your retirement plan.

The Ontario Pension Board offers various benefits, including a cost of living adjustment, which is applied to all pensioners, survivor pensions, and deferred pensions of former and divested members. Starting January 2023, this adjustment increased by 4.8%.

Retirees who retired before June 1, 2007, receive an annual inflationary increase based on changes in the Average Weekly Earnings published by Statistics Canada, subject to a maximum of 7% in any one year, and is effective on April 1st every year.

Judges who were appointed before June 1, 2007, and retired on or after June 1, 2007, may have elected to be paid under the plan provisions effective on that date, receiving an annual inflationary increase based on changes in the Consumer Price Index, effective on January 1st every year.

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If you're eligible for retiree benefits, the following changes will apply to your benefits coverage.

You may be able to purchase additional benefits if you're enrolled in the Legacy Post-Retirement Benefits or in the Retiree-Focused (PRB) plans.

Retirees enrolled in these plans may purchase additional benefits.

The PRB Optional Upgrade Pamphlet provides more information on this option.

Your pension will increase by 4.8% starting January 2023. This increase applies to all pensioners, survivor pensions, and to the deferred pensions of former and divested members.

The annual cost of living adjustment (COLA) is a standard practice that ensures your pension keeps pace with inflation. This means your purchasing power remains the same, even as prices rise.

COLA is applied to all pensioners, which includes those who have already retired and are receiving their pension. This means you'll see the increase in your next pension payment.

The COLA is calculated based on various economic indicators, but the exact formula isn't specified in the provided information.

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The escalation of benefits is an essential aspect of your pension plan, ensuring that your hard-earned retirement income keeps pace with inflation.

Judges who retired before June 1, 2007, receive an annual inflationary increase based on changes in the Average Weekly Earnings published by Statistics Canada, with a maximum of 7% in any one year and effective on April 1st every year.

This increase is also tied to the salary increases of sitting judges as recommended by the Provincial Judges Remuneration Commission.

Judges who were appointed before June 1, 2007, but retired on or after June 1, 2007, and elected to be paid under the plan provisions effective on that date receive an annual inflationary increase based on changes in the Consumer Price Index, effective on January 1st every year.

For judges appointed to office on or after June 1, 2007, with no available election, the same annual inflationary increase applies upon retirement.

Starting January 2023, all pensioners, survivor pensions, and deferred pensions of former and divested members will receive a 4.8% annual cost of living adjustment (COLA).

Contributions to the Ontario Pension Board are made by judges, who are required to contribute 7% of their salary into the Retirement Plan and the Registered Contributions Account (RCA).

Judges must contribute to the RPP and RCA by way of deduction from their salary, up until they meet their basic service requirement or reach the age of 70.

The Minister ensures that any pension contributions exceeding the dollar limit for pension plan contributions under the Income Tax Act are directed to the RCA.

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To load a file, you'll need to log in to your OPTrust Secure Employer Portal account and select "File Upload" from the menu on the left. This will allow you to easily upload the necessary documents.

You can electronically sign and submit various forms using DocuSign through OPTrust Secure Employer Portal, including Transfer Form, Termination Form, Notice of Unpaid Leave of Absence, and Membership Enrolment forms.

OPTrust Data Interface File Formats are used by employers to send contributions to OPTrust.

OPTrust data interface file format examples can be found in the OPTrust Data Interface File Formats Example section.

Employers must use a specific file format to ensure accurate and timely contributions.

The file format examples provide a clear guide for employers to follow.

Employers should review the file format examples carefully to ensure compliance.

Each judge is required to contribute 7% of their salary into the RPP and RCA, by way of deduction from the judge’s salary, up to the earlier occurrence of either meeting their basic service requirement or attaining 70 years of age.

The Minister ensures that the portion of each judge’s pension contributions that exceeds the dollar limit for pension plan contributions under the Income Tax Act is contributed to the RCA.

The amount to be contributed in a year is based on an actuarial valuation. This means that the actual contribution amount may vary from year to year.

Pension payments are available based on age and years of service, sourced from three components.

A portion of pension payments is based on 2% of a judge's average salary for their final three years of service, multiplied by their years of service up to a defined benefit limit.

Another portion of pension payments is based on 2% of a judge's average salary for their final three years of service, multiplied by their years of service without regard to the defined benefit limit, reduced by the RPP amount.

If the pension without the defined benefit limit is greater than the RPP amount, a supplemental payment is made.

Participants not eligible for pension payments are entitled to a refund of their contributions to the Plan plus interest upon ceasing to hold office for a reason other than death.

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Authorization for Deduction of Contribution Arrears is a crucial step for divested members to settle their pension plan contribution arrears.

You'll need to fill out the OPTrust 1016 form, which is a sample provided to guide you through the process.

This form is specifically designed for divested members, so make sure you're using the right one.

To fill out the form, you can refer to the sample provided, which shows you exactly how to complete it.

Filling out the form accurately and completely is essential to ensure a smooth processing of your contribution arrears.

By following the sample and instructions, you'll be able to submit your form and move forward with settling your contribution arrears.

If you're a retiree enrolled in the Legacy Post-Retirement Benefits or in the Retiree-Focused (PRB) plans, you may be eligible to purchase additional benefits through the PRB Optional Upgrade.

This upgrade is optional, and it's not automatically included in your existing plan. You'll need to review the PRB Optional Upgrade Pamphlet to understand the specifics of what's available.

The PRB Optional Upgrade allows you to purchase additional benefits, but it's essential to understand that this is an optional upgrade, not a required one.

Preparing for departures can be a challenge, especially when it involves key executives like Mark Fuller, the president and chief of the Ontario Pension Board, who is leaving the company.

The Ontario Pension Board is announcing its plans for managing the coming departures of two of its top executives.

The Ontario Pension Board's financial statements provide valuable insights into the organization's financial health. The statements of financial position reveal a total of $403,005 in assets for the RPP plan as of December 31, 2022, with a significant portion of this being investments valued at $400,480.

The RPP plan's net assets available for benefits stood at $402,816 as of December 31, 2022, with a deficit of $63,570. In contrast, the RCA plan had a net deficit of $398,200 at the same date. The SUPP plan had a net deficit of $472,080.

Here's a comparison of the assets and liabilities for the RPP and RCA plans as of December 31, 2022:

Financial Position is a crucial aspect of any organization's financial statements. It provides a snapshot of the company's assets, liabilities, and net assets available for benefits at a specific point in time.

Cash and investments are two of the most significant assets for an organization. As of December 31, 2022, RPP had $1,088 in cash and $400,480 in investments, whereas RCA had $11,448 in cash and $58,457 in assets.

Other assets, such as contributions receivable and other receivables, also play a vital role in an organization's financial position. RPP received $534 from members and $745 from the province in 2022, while RCA received $25 from members and $204 from other sources.

Accounts payable is a liability that an organization must settle. As of December 31, 2022, RPP had $189 in accounts payable, while RCA had $155.

A pension obligation is a significant liability for organizations that offer pension plans. As of December 31, 2022, RPP had a pension obligation of $466,386, while RCA had a pension obligation of $456,502.

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Here is a summary of the total assets and liabilities for RPP and RCA as of December 31, 2022:

The net assets available for benefits, also known as the deficit, can be calculated by subtracting total liabilities from total assets. As of December 31, 2022, RPP had a net assets available for benefits of $402,816, while RCA had a net assets available for benefits of $58,302.

Changes in Equity are a crucial part of a company's financial statements, and they can be a bit tricky to understand. Let's break it down.

The Statements of Changes in Net Assets Available for Benefits show the increase or decrease in net assets available for benefits over a specific period. In the 12 months ended December 31, 2022, the net assets available for benefits increased by $17,596 for RPP, $37,206 for RCA, and $19,480 for SUPP.

The total increase in net assets for RPP, RCA, and SUPP is shown in the table below:

However, this increase was offset by a decrease in net assets due to benefits paid, termination payments, pension administration expenses, and investment management expenses. The total decrease in net assets for RPP, RCA, and SUPP is shown in the table below:

The net increase or decrease in net assets available for benefits is calculated by subtracting the total decrease in net assets from the total increase in net assets. In the 12 months ended December 31, 2022, the net decrease in net assets available for benefits was $4,620 for RPP, a net increase of $18,714 for RCA, and a net decrease of $1,666 for SUPP.

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The Statements of Changes in Pension Obligations show the increase or decrease in pension obligations over a specific period. In the 12 months ended December 31, 2022, the pension obligations increased by $49,823 for RPP, $62,426 for RCA, and $70,326 for SUPP.

The net increase or decrease in pension obligations is calculated by subtracting the total decrease in pension obligations from the total increase in pension obligations. In the 12 months ended December 31, 2022, the net increase in pension obligations was $39,304 for RPP, a net decrease of $24,131 for RCA, and a net decrease of $13,211 for SUPP.

The Statements of Financial Position show the company's assets, liabilities, and net assets at a specific point in time. In the 12 months ended December 31, 2022, the total assets for RPP, RCA, and SUPP were $403,005, $58,457, and $102, respectively.

The net assets available for benefits and pension obligations are critical components of a company's financial statements. By understanding the changes in these components, investors and analysts can gain a better understanding of a company's financial health and future prospects.

The Ontario Pension Board has made significant changes to its leadership team. The organization is appointing Marc Rondeau as part of its management transition plan.

Rondeau is one of two senior executive appointments made by the board.

The Provincial Judges Pension Plan is administered by the Provincial Judges Pension Board, which has been assisted by the Ontario Pension Board since their joint selection by the Minister and the Board.

The Board retains responsibility for setting the investment strategy and target asset mix for the RPP's and RCA's investments.

The Investment Management Corporation of Ontario was created by the Investment Management Corporation of Ontario Act, 2015, and provides investment management and select advisory services to participating organizations in Ontario's broader public sector.

As of December 31, 2022, no assets were held with IMCO for the RCA, but IMCO began managing the RPP assets on March 26, 2020, after an investment management agreement between IMCO and the Board became effective on March 17, 2020.

Andrew Fung has been appointed executive vice-president of pensions at the Financial Services Regulatory Authority of Ontario, effective March 11, 2024.

Fung first joined the Financial Services Regulatory Authority of Ontario in 2018.

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The Ontario Pension Board has a strong focus on investments and partnerships. They have a diversified investment portfolio that includes a mix of public and private assets.

They aim to achieve a return of 5.75% to 6.25% per annum on their investments. This is a key factor in ensuring the long-term sustainability of the pension plan.

The Board has a robust governance framework in place to oversee their investments and partnerships. This includes regular monitoring and reporting to ensure that their investment strategy is aligned with their objectives.

DC investment options are impacted by a plan sponsor's approach. A documented rationale for the investment lineup is crucial for designing an optimal menu.

Plan sponsors need to consider their own approach to investment options. This includes their investment philosophy, risk tolerance, and target audience.

External factors also play a significant role in determining DC investment options. These factors include market trends, economic conditions, and regulatory requirements.

A plan sponsor's approach can influence the type of investment options they offer. For example, some may focus on low-cost index funds, while others may prefer actively managed funds.

External factors can also impact the investment options available to plan participants. For instance, a downturn in the market may lead to a decrease in the value of certain investment options.

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OMERS Sponsors Corp. has undergone a change in its board structure, shifting from a co-chair to a chair and vice-chair system.

This change was discussed and implemented to improve the organization's leadership and decision-making process.

The Ontario Municipal Employees Retirement System is also making a key appointment, with Celine Chiovitti taking on the role of chief pension officer, effective February 6, 2024.

In this new position, Chiovitti will continue to oversee the pension plan's administration and management.

The Ontario Teachers' Pension Plan has also made several key appointments to its executive team, with Stephen McLennan joining as chief investment officer.

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Omers is leading a significant investment in a supply chain company. The investment amount is not specified in the article section.

Omers is partnering with a 3D robotics supply chain company. This partnership is expected to bring innovative solutions to the supply chain industry.

The investment will likely have a positive impact on the company's growth and development.

Andrew Fung is joining the Financial Services Regulatory Authority of Ontario as executive vice-president of pensions, effective March 11, 2024.

Tim Deacon is leaving his role as chief financial officer at the Ontario Teachers' Pension Plan for a leadership role at another financial institution, effective at an unspecified date.

The Ontario Teachers' Pension Plan is making four key appointments to its executive team, effective immediately, including appointing Stephen McLennan as chief investment officer.

Celine Chiovitti has been appointed as chief pension officer at the Ontario Municipal Employees' Retirement System, effective February 6, 2024.

The Ontario Pension Board (OPB) is making key appointments as part of its management transition plan. This includes appointing Marc Rondeau, who will join the organization.

The OPB is also appointing Darwin Bozek as president and chief pension officer, effective February 1, 2024. He joins the OPB from the Alberta.

These appointments are part of the OPB's plan to transition its management. This will help the organization continue to provide pension services to its members.

The OPB is making significant changes to its leadership team. With these new appointments, the organization is well-positioned to meet the needs of its members.

Darwin Bozek will lead the OPB's pension services, bringing his experience from the Alberta.

Jeff Wendling, the president and chief executive officer at the Healthcare of Ontario Pension Plan, is retiring in 2025. He has been with the organization for over 25 years.

After more than two and a half decades, Wendling is leaving the Healthcare of Ontario Pension Plan.

Tim Deacon is leaving his role as chief financial officer at the Ontario Teachers’ Pension Plan.

He is taking on a leadership role at another financial institution, but the specific details of this new position are not mentioned in the article.

Tim Deacon's departure from the Ontario Teachers’ Pension Plan is effective, but the exact date is not specified in the article.

This change in leadership will likely have an impact on the pension plan, but the article does not provide further information on what this might entail.

Blake Hutcheson has taken over as the new chief executive officer of the Ontario Municipal Employees Retirement System.

He succeeded Michael Latimer, a change that was reported in December 2019.

Blake Hutcheson's new role became effective in June, marking a significant shift in leadership at the organization.

Kathryn Fric is taking on a new role as the chief risk officer at the Ontario Teachers’ Pension Plan, effective November 1.

She will report to Jo Taylor, who oversees the organization.

Fric is set to join the Ontario Teachers’ Pension Plan as its next chief risk officer.

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Karen Frank has been appointed as the senior managing director of equities by the Ontario Teachers' Pension Plan. She will be based in the pension fund's London office.

Karen Frank is taking on the new role, and we can expect to see her contributions to the pension fund's equities team.

The University Pension Plan made a significant change on July 1, 2021, by launching and converting to a jointly sponsored pension plan (JSPP). This conversion marked a new era for the pension plan.

The conversion to a JSPP was achieved through a merger, combining the pension assets of three Ontario universities. The University of Guelph and the University of Windsor were the other two universities involved in this merger.

The University Pension Plan's conversion to a JSPP has provided a more stable and secure pension benefit for its members.

OMERS has appointed Ashish Goyal as executive vice-president and head of Asia-Pacific.

In this new role, Ashish will oversee investments across the region.

Ashish Goyal is taking on a significant responsibility at OMERS.

The Ontario Municipal Employees' Retirement System is the organization behind this appointment.

Ralph Berg is taking on a new role as the chief investment officer at OMERS, effective April 1, 2023.

Berg is a proven investor with a strong track record of success.

His appointment is a significant move for OMERS, and we can expect to see the impact of his leadership in the months to come.

The Ontario Municipal Employees’ Retirement System is behind this appointment, and it's clear they're looking for a seasoned professional to guide their investment strategy.

Romeo Leemrijse was appointed as the executive managing director of equities at the Ontario Teachers’ Pension Plan, effective January 1, 2023.

In this role, he will be responsible for overseeing the equities division, which is a significant part of the pension plan's investment strategy.

Lori Hall-Kimm is taking on a new role as head of global private equity at HOOPP, starting in January.

In this position, Hall-Kimm will be responsible for leading the organization's global private equity efforts.

The Canada Pension Plan Investment Board is making two notable senior appointments, one of which is Maximilian Biagosch as its senior managing director and Europe regional head.

These appointments highlight the ongoing efforts of pension plan organizations to strengthen their leadership and investment strategies.

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The Canada Pension Plan Investment Board (CPPIB) has made a significant move by tapping Deborah Orida as its first chief sustainability officer.

Deborah Orida will lead the CPPIB's efforts in this new role.

In this position, Orida will be responsible for overseeing the CPPIB's sustainability initiatives.

As the CPPIB's first chief sustainability officer, Orida will play a crucial part in shaping the organization's approach to sustainability.

Bruce Crane has been appointed as the executive managing director and head of Asia-Pacific by the Ontario Teachers' Pension Plan, effective immediately.

He will lead investment activities in the new role.

Bruce Crane's appointment marks a significant move for the Ontario Teachers' Pension Plan in the Asia-Pacific region.

Pierre Cherki has been appointed as the executive managing director of the Ontario Teachers' Pension Plan's new in-house real estate asset group.

He will take on this role effective January 22, 2024.