2010 highlights

• Net investment earnings of $1.5 billion helped increase the Plan’s net assets to $13.3 billion at year-end, up by $1.3 billion from 2009.
• The value of members’ and retirees’ accrued pension benefits increased to $12.9 billion, up by $610 million from 2009.
• The Plan’s unallocated financial statement surplus decreased by $325 million, to $63 million at year-end, mainly due to the recognition of net deferred investment losses from previous years.

Long-term perspective

At OPTrust, we take a long-term perspective on the Plan’s finances to help ensure the security of the pension promise. This approach continued to serve our members, pensioners and sponsors well in 2010.

The continuation of strong investment performance in 2010 produced net investment income of $1.5 billion, compared to $1.3 billion the previous year. As a result, the Plan’s net assets increased to $13.3 billion at year-end.

Despite the growth in net assets, the Plan’s unallocated financial statement surplus decreased by $325 million, to $63 million at year-end. The lower surplus is mainly due to the recognition of net deferred investment losses from previous years. The balance of $489 million remaining in net deferred investment losses will be charged to surplus next year. [See Transition to International Financial Reporting Standards (IFRS) for further discussion].

The financial statement surplus is not available to reduce contribution rates, enhance benefits or increase the Plan's rate stabilization funds. Only a surplus identified in a funding valuation can be used for those purposes. [More on Pension Funding and Deficit Management and Financial Statement and Funding Valuations].

The following overview summarizes key results of the Plan’s 2010 financial statements, including significant changes during the year. The financial statements are prepared in accordance with Canadian generally accepted accounting principles and differ from the results of the funding valuation, which are discussed earlier in the report.