Changes in net assets (continued)
Pension payments increased by 3.6% in 2010 to $489 million over the year, compared with $472 million in 2009. The increase reflects the steady growth in OPTrust’s pensioner population, which increased by 1061 retirees, reaching 25,813 at year-end.
Payments to retirees also rise each year due to the annual inflation adjustment applied to all OPTrust pensions. In January 2010, retirees received an increase of 0.5% (compared to 2.5% in 2009). The increase for 2011 is 1.4%.
Terminations and transfers to
Termination payments and transfers to other plans were $132 million in 2010, compared with $246 million in 2009. The change is mainly due to a decrease in pension transfers to the Ontario Pension Board.
Administrative expenses were $18.7 million in 2010, compared with $18.1 million in 2009 and $17.1 million in 2008. OPTrust continues to improve its administrative processes in order to deliver a high level of service and communications while continuing to be cost-effective in service delivery.
Pension payments continued to rise in 2010, reflecting both steady growth in the number of OPTrust retirees and the impact of inflation-related increases on their annual pensions. Termination and transfer payments decreased in 2010 mainly due to a decrease in transfers to the Ontario Pension Board.