The Plan’s total financial statement surplus was $883 million at year-end, compared with $1.2 billion at the end of 2009.
The total surplus includes both the Plan’s unallocated surplus and the rate stabilization funds established by each of the sponsors. At year-end 2010, the member rate stabilization fund stood at $398 million, compared with $404 million at the end of 2009. The employer rate stabilization fund was $422 million at the end of 2010, up from $407 million the previous year. The Plan’s unallocated surplus at December 31, 2010, was $63 million, down from $388 million.
In 2010, as in the previous year, $32 million was used from each of the member and employer stabilization funds to address the funding deficit identified in the actuarial funding valuation filed in 2009.
The rate stabilization funds earn interest equal to the funding interest rate of 6.50% as at December 31, 2010 (December 31, 2009 – 6.75%).
Actuarial adjustment reduces the short-term impact of volatile investment returns on the Plan’s surplus. At the end of 2010, OPTrust’s financial statements identified a total surplus of $883 million, based on deferred net losses of $489 million from previous years. The recognition of these losses will reduce the surplus next year.