• OPTrust’s Net Assets Exceed $10 Billion in 2004
• Great-West Life Client Identification Numbers
• Facts About… Insured Benefits
• You asked… T4A Statement
• Client Service Satisfaction Survey
• Pensioner Information Change Statement
• New Features Added to the Retirement Income Calculator
• Pensioner Profile
• 2005 Insured Benefits Premium Rates
• Did You Know?

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• OPTrust’s 11.7% investment return increases the Plan’s net assets to $10.5 billion.
• During the first 10 years of operation, OPTrust has achieved an average annual return of 9.9.

In 2004, OPTrust achieved double-digit investment returns for our second year in a row. This strong result follows two years of investments losses in 2001 and 2002. As a result, at the end of 2004, the OPSEU Pension Plan's net assets reached $10.5 billion - a record high our first 10 years of operation.

During 2004, OPTrust registered an investment return of 11.7%. This exceeded our long-term target of 7.5% for the seventh time in our first decade of operation. This strong performance – following a 17.3% return in 2003 – increases total assets available for benefits by $1.1 billion from 2003.

Of course, investment returns continue to vary substantially from year to year in response to worldwide market conditions. For this reason, we also measure the relative performance of the portfolio against indices – or “benchmarks” – that track the overall performance of the markets in which we invest.

In 2004, the Plan outperformed our weighted benchmark return of 11.5%. The above benchmark performance of the Plan’s investments resulted from the strong performance of our foreign equity and real estate portfolios, which more than offset below benchmark returns in the Canadian and fixed income portfolios.

The Plan’s 9.9% average annual return since 1995 has outperformed the portfolio’s weighted benchmark, which registered an average return of 8.9% annually during the same period.

Investment highlights
During 2004, OPTrust’s Investment Division continued to implement major changes to the Plan’s investment portfolio. These changes were based on a restructuring plan approved by the Board of Trustees in 2003.

Major initiatives in 2004 included increasing our real estate holdings, changing our Canadian equity management structure and modifying our fixed income strategy to better match the Plan’s pension liabilities.

Actuarial Valuation Confirms Funding Loss
In 2003, OPTrust’s Board of Trustees adopted an enhanced “liability management strategy” to address the consequences of the projected funding loss and reduce the risk of member contributions rising above the Plan’s normal rate over the next several years. Pensioners are not affected by contribution rate increases.

As expected, the funding valuation showed a net funding deficit of $255 million for the years 2002 and 2003. The main contributing factor for this deficit was the investment losses in 2001 and 2002.

Service Excellence
An important goal of OPTrust is to provide excellent service and communications for members and pensioners. During 2004, several important results were achieved.

The number of outstanding open cases was reduced by more than 50%, and the number of cases overdue for more than 30 days was reduced from 44% of total cases to less than 10%.

New, secure, personalized online services were made available for members and pensioners. Pensioners were able to obtain their T4A taxation slips and make changes to their banking information. And for the first time in 2004, OPTrust members were able to view and print their annual pension statement online, weeks ahead of when they would have received a paper copy.

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Great-West Life Client Identification Numbers

In the winter issue of The Pension Connection we informed you of an initiative that was underway to introduce new Client Identification Numbers for benefits claims with Great-West Life. There has been a delay in this process. The Government of Ontario and Great-West Life are working to expedite this project.

OPTrust will keep you informed when the Client Identification Numbers are ready to go into use. In the interim, you should continue to use your Social Insurance Number on all Great-West Life claims forms.

For more information on Great-West Life or to download a form, visit their website at www.gwl.ca.
 

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Facts About… Insured Benefits

Depending on your circumstances you may be entitled to receive insured benefits coverage provided by the Government of Ontario, once you start to receive your OPTrust pension.

Insured benefits for eligible pensioners include coverage for dental, supplementary health and hospital, and basic life insurance.

The Government of Ontario pays the premiums for these benefits. For pensioners who elected vision care and hearing aids plan coverage, there is a small premium that is deducted from your monthly pension payment. The premiums for basic life insurance are paid by your employer but are a taxable benefit for you.

If you were employed by a scheduled agency, board or commission outside the OPS, any additional benefits depend on the collective agreement in place with your former employer at the time of your termination. This applies to eligible retirees who worked at the LCBO.

Who is covered?
You, your eligible spouse and your eligible dependent children may be entitled to insured benefits if you:

• are receiving a pension based on at least 10 years of credit in the OPSEU Pension Plan
• are receiving a pension based on at least 10 years of continuous employment and have credit in the OPSEU Pension Plan for some part of each of those 10 years.

If you were employed in the Ontario Public Service or by another participating employer and meet either of these criteria, you are entitled to insured benefits in retirement.

For more details on insured benefits, please refer to the Management Board Secretariat booklet: A Guide to your Benefits – After Retirement. This booklet is available from OPTrust.

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You asked… T4A Statement

Question: I understand I can view my T4A online. How do I access my statement?

Answer: To access your 2004 T4A you need to register for OPTrust’s Online Services and you will need to have your 2003 T4A ready. Once there, enter your “gross pension” figure from your T4A statement. If you do not have a copy of your statement, you can register by phone. Call OPTrust at (416) 681-6100 or toll-free at 1-800-637-0024. Our staff is here to help you.

Question: I want to increase the tax amount being deducted from my pension payment. What should I do?

Answer: If you would like additional income tax deducted from your pension payment you can sign-in to Online Services and update your record online. You can also complete a Personal Information Change Request form to update your information. The form is available online or by contacting our Member and Pensioner Services staff.

OPTrust only withholds the required amount of income tax based on your OPTrust pension unless you ask us to withhold an additional amount. We do not withhold income tax for any other sources of income, such as any investment income.

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Client Service Satisfaction Survey

At OPTrust, we recognize the importance of seeking our members' and pensioners' input to help us deliver the kind of service they’ve come to expect from OPTrust.

In 2004, we distributed questionnaires to more than 5,700 individuals who completed transactions with OPTrust, as part of our ongoing client satisfaction survey. Respondents were asked to evaluate the service they received and identify areas for improvement.

Your responses help us determine the needs and priorities of our members and pensioners – and in particular how we measure up from year to year. By the end of 2004, our results indicated that:

• the level of satisfaction with OPTrust increased to 7.9 out of 10, up from 7.7 in 2003. By March 31, 2005 this number increased again to 8.4.
• 96% of respondents who read OPTrust’s publications find them helpful
• our Member and Pensioner Services staff consistently receives high marks for the quality of service they provide.
• more than half our members and pensioners want to communicate with OPTrust and access their personal pension information online
• members want us to continue improving the time it takes to process transfer transactions.

Overall satisfaction with OPTrust for key transactions is up from 2003.

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Pensioner Information Change Statement

Every January and April, OPTrust sends out its Pensioner Information Change Statement to retirees to provide an overview of their pension, including deductions and insured benefits premiums.

The Pensioner Information Change Statement (PICS) is a personalized statement for all OPTrust pensioners providing a detailed snapshot of their pension to date. The PICS statement is issued whenever there is a change in their monthly pension payment (e.g. inflation adjustments, insured benefits premiums, etc).

Your PICS gives you a report on your pension and personal information on file at OPTrust, including:

• CPP integration (if you are under age 65)
• pension growth and accumulated pension paid
• federal and provincial TD1 claim amounts
• life insurance
• spousal information on file

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New Features Added to the Retirement Income Calculator

OPTrust’s has added several new features to its powerful Retirement Income Calculator to help you estimate your income from various sources. The calculator, which was launched in 2004, allows you to compare a number of possibilities. You can find out how:

• integration with the Canada Pension Plan (CPP) changes your OPTrust pension at age 65
• taking CPP early will affect your total retirement income, before and after age 65
• Old Age Security (OAS) payments at age 65 could add to your total retirement income.

• the option to enter other pension income you may receive
• descriptive graphs to illustrate your retirement income before and up to age 65
• a comparison of your previous employment income to your retirement income.

Once there, you can then enter details about your sources of retirement income. These can include:

• your OPTrust pension
• registered retirement savings plans (RRSPs)
• Canada Pension Plan (CPP) and Old Age Security (OAS)
• pension from other sources
• employment income, if you plan to work after you retire
• income from other sources, such as investments.

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Pensioner Profile

A new addition to The Pension Connection is our Pensioner Profile section, where we will feature various OPTrust pensioners who share their retirement experiences.

In this issue, we feature Grace Lang, a 20-year Ontario Public Service employee who worked for the Ministry of Transportation in the Carrier Sanction and Investigation Office. With 20 years of service, Grace retired early at age 60 under OPTrust’s temporary Factor 80 retirement option. Retired for two years, Grace likes the flexibility and freedom retirement offers.

Retirement can be a significant life change for many new pensioners and it often takes some adjustment. But Grace enjoys her new lifestyle and is as active in retirement as she was during her career. One of the joys retirement has brought is the opportunity to spend more time with her two young granddaughters. Coordinating vacations and travel plans is no longer a problem, since Grace and her husband now have the opportunity to take several short trips a year to visit family and friends, when the time is convenient for them.

Additionally, Grace has become actively involved in her community through volunteer work. From November to March she volunteers with the Out-of-the-Cold program, which provides shelter and food for the homeless. And in 2004, she volunteered to help St. Catharines host the Seniors’ Actifest at Brock University. When Grace does have some free time, she can often be found at the YMCA, taking in AquaFit classes that suit her schedule.

Since retiring Grace has taken up a new hobby to sort through and organize all the photos that have been collected over 40 years of married life – a real “family archive” for her grandchildren as they grow up.

Are you enjoying retirement? We want to hear your story and possibly feature you in a future issue of The Pension Connection. Send an e-mail message to communications@optrust.com.
 

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2005 Insured Benefits Premium Rates

Good news for eligible retirees! Your premium rates for insured benefits have decreased by 8% this year. However, rates for the Government of Ontario have gone up. Starting April 1, 2005 rates for insured benefits premiums are:

*You pay a small premium if you elected vision care and hearing aids plan coverage. If you choose only medical and dental coverage you will pay no premium at all. Your former employer pays most of the cost for your insured benefit premiums.

GO Transit Pensioners

*You pay a small premium if you elected vision care and hearing aids plan coverage. If you choose only medical and dental coverage you will pay no premium at all. Your former employer pays most of the cost for your insured benefit premiums.

Your Pensioner Information Change Statement reflects the change in premiums (see above). For more information on your insured benefits coverage refer to the Management Board Secretariat booklet.
 

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Did You Know?

Over the last 10 years, OPTrust’s pensioner population has more than quadrupled from just 4,836 in 1995 to over 20,000 pensioners in 2005.

Retirement figures at OPTrust as of December 31, 2004

In 2004, more than half of OPTrust’s new pensioners retired under OPTrust temporary Factor 80 option.

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