About the OPSEU Pension Trust
The OPSEU Pension Plan is the result of years of discussion between the Government of Ontario and OPSEU to create a pension plan in which the members, who go on to become pensioners, have a say. The Board of Trustees of the OPSEU Pension Plan Trust Fund administer the OPSEU Pension Plan.
The OPSEU Pension Trust (OPTrust) officially began operating on January 1, 1995.
OPSEU Pension Trust is a legal trust formed by a contractual agreement between the Plan sponsors, namely OPSEU and the Ontario Government. OPSEU Pension Trust is at arm’s length from both Plan sponsors.
The OPSEU Pension Plan is governed by 10 trustees, five appointed by the Government of Ontario and five appointed by OPSEU. The Board of Trustees is responsible for the investment of the Plan’s funds and the administration of the Plan.
Risk and Reward Sharing
Every three years, all registered pension plans must undertake an actuarial valuation to assess whether the required funds will be available to pay expected future pensions. During this valuation, gains and losses are examined based on actuarial assumptions and actual experience in the pension plan.
In the OPSEU Pension Plan, gains are shared equally – 50% to members and pensioners and 50% to the Government of Ontario. The members’ and pensioners’ share can be used to stabilize or reduce member contributions or to fund improved benefits, at the choice of OPSEU. The Government of Ontario must first use its gains to reduce contributions, to fund improved benefits or create a fund to stabilize its contributions. If there are losses in the Plan, these are also shared equally, between members and employers, by increasing contributions.