2018 HIGHLIGHTS









Message from the Chair and Vice-Chair

The fundamental responsibility of any pension plan is to create a secure retirement income for its members. Good pensions are important to individuals but are also essential to our economy as they create security and prosperity for tens of thousands of Ontarians. We believe more people deserve workplace pensions, so we introduced OPTrust Select, the first new defined benefit pension offering in a generation.
As OPTrust created the opportunity for greater retirement security for many Ontarians, it also continued to deliver sustainability and security to the Plan’s almost 95,000 members. The Plan remains fully funded after a year of ongoing market challenges and a low-return environment. Members also continued to highly rate OPTrust’s service.
2018 was a year of many accomplishments for the organization as it maintained a position of strength and sustainability for the Plan.
Message from the Chair and Vice-Chair
The fundamental responsibility of any pension plan is to create a secure retirement income for its members. Good pensions are important to individuals but are also essential to our economy as they create security and prosperity for tens of thousands of Ontarians. We believe more people deserve workplace pensions, so we introduced OPTrust Select, the first new defined benefit pension offering in a generation. This retirement solution offers workplaces in the broader public sector, charitable and nonprofit sectors the advantages of a defined benefit pension plan at a moderate cost. The solution was recommended by the Ontario Nonprofit Network (ONN), the independent network for the 58,000 nonprofits and charities in Ontario.
As OPTrust created the opportunity for greater retirement security for many Ontarians, it also continued to deliver sustainability and security to the Plan’s almost 95,000 members. The Plan remains fully funded after a year of ongoing market challenges and a low-return environment. Members also continued to highly rate OPTrust’s service.
While we are pleased with the successes of 2018, OPTrust devoted time and energy throughout the year to preparing for the future. As a Board we continue to oversee the successful phased updating of the organization’s core Pension Administration System. When this project is complete, the system will form the foundation on which OPTrust will continue to deliver a remarkable member experience.
Looking out for our members’ interests also means looking beyond what happens in our offices. This year, OPTrust played a leadership role in advancing new thinking on climate change with the release of its Climate Change Action Plan and by hosting a Climate Change Symposium. As one of the most significant risks today, better understanding the effects of climate change on the Plan is a critical and long-term endeavour.
Board changes
2018 was a year of change and renewal
for the Board. As part of OPTrust’s
governance structure one Government
of Ontario appointee and one OPSEU
appointee fill the positions of Chair and
Vice-Chair, with the roles alternating
between Government and OPSEU
appointees every two years. We were
honoured to be selected as Chair
and Vice-Chair and look forward to
continuing to serve OPTrust in these
leadership roles. Past Chair Vicki
Ringelberg completed her term on
the Board in 2018 after serving as a
Trustee since 2011. We thank Vicki for
her leadership and dedication during
her many years on the Board. Thank
you also to Patricia Li, who left the
Board in 2018. We welcomed two new
OPSEU appointees this year, Lindsey
Burzese and Jason Glover, and thank
them for their ongoing commitment to
retirement security, good pensions and
the Plan’s members.
To help the Board carry out its strategic oversight role, the Board has established four standing committees: Governance and Administration, Investment, Audit, Finance and Risk, and Human Resources and Compensation. 2018 also saw new Chairs appointed to each of the Board’s committees, with Don Wilkinson, a Government appointee assuming the Chair of Audit, Finance and Risk, and Lindsey Burzese, an OPSEU appointee, assuming the Chair of Human Resources and Compensation. As Board Chair and Vice-Chair, we were also appointed Chairs of the Governance and Administration and Investment Committees respectively. As a Board we continue to look for ways to enhance our oversight and in 2018, we completed a Canadian Association of Pension Supervisory Authorities (CAPSA) governance review which confirmed that our governance is robust and effective.

2018 was a year of many accomplishments for the organization as it maintained a position of strength and sustainability for the Plan. We thank all OPTrust staff and our fellow Trustees for their incredible work this year and look forward to continuing to serve the Plan and its members.
Tim Hannah
Chair
Sharon Pel
Vice-Chair

DEFINED BENEFIT
There was no question I would join right away, it made sense for me to start working towards retirement security for the future. It makes my life a lot easier to know that my pension is in safe hands with OPTrust.
Caroline Lynch
OPTrust Member
Business Analyst
Ministry of Transportation
Message from the Interim President and CEO

In 2018, global markets were characterized by volatility and low returns, however we demonstrated that our strategy to deliver sustainability and stability for our members is working. Despite the headwinds we faced, the Plan remains fully funded and on solid footing.
Pensions are a long-term endeavour, with true success measured over decades rather than years. This is especially important to remember when short-term market events occur or returns are challenging.
The core idea of our Member-Driven Investing (MDI) strategy is that the primary goal of a pension plan must be to maintain its funded status rather than the pursuit of high investment returns.
Message from the Interim President and CEO
In 2018, global markets were characterized by volatility and low returns, however we demonstrated that our strategy to deliver sustainability and stability for our members is working. Despite the headwinds we faced, the Plan remains fully funded and on solid footing.
Pensions are a long-term endeavour, with true success measured over decades rather than years. This is especially important to remember when short-term market events occur or returns are challenging. Over the long term, we know that periods of low returns are possible, which is why we continue to work diligently to ensure the Plan is able to weather these events. The core idea of our Member-Driven Investing (MDI) strategy is that the primary goal of a pension plan must be to maintain its funded status rather than the pursuit of high investment returns.
While keeping the Plan fully funded is our most critical responsibility, we also believe that our members deserve a remarkable experience in their dealings with their pension plan at a low cost. We pay close attention to our members’ views on the service they receive and I am pleased to report that members continue to rate their overall satisfaction with OPTrust very highly with an average score of 9.1 out of 10 for 2018. OPTrust also benchmarks itself against leading pension plans around the world through CEM Benchmarking Inc. (CEM) and achieved a score of 89 out of 100, placing it in the top six plans globally for service.
That experience takes more than a system. It takes great people who listen to our members and understand their needs. In 2018, OPTrust launched a transformation of its Member Services group to Member Experience in recognition of the importance of our members and the experience they deserve with their pension plan. This work will continue to evolve the way our members interact with, and receive services from, OPTrust.
It is important to members that OPTrust provides their secure retirement income and delivers a remarkable member experience at a low cost. OPTrust staff strive to do just that. Prudent management of expenses is consistent with our mission of paying pensions today, preserving pensions for tomorrow.
We also created the opportunity to bring the advantages of a defined benefit plan and our services to more people through the introduction of OPTrust Select, the first new defined benefit pension offering in a generation. This retirement solution is targeted to workers in the charitable, nonprofit and broader public sectors.

I would like to thank OPTrust staff for their hard work in 2018 and OPTrust’s Board of Trustees for their guidance and oversight on behalf of the Plan and its members. As we look ahead to 2019, we will continue to stay the course, putting our members’ interests foremost in all we do.
Doug Michael
Interim President and CEO
Strategy
The Plan is fully funded and on solid footing. Keeping the Plan fully funded over the long term begins with a thoughtful, prudent approach to plan funding.

FINANCIAL SECURITY
My OPTrust pension has allowed me to meet my day-to-day living expenses, it is a big part of my retirement income. There is independence and security in knowing that I don’t need to worry.
Steven Gulyas
OPTrust Retiree
Ministry of Advanced Education, Skills & Training
Pension Funding
Investment Strategy and Performance


FUTURE GOALS
Having a defined benefit pension takes away a lot of financial stress and allows me to focus on other savings and goals for my future.
Jamie Haldenby
OPTrust Member
Data Management Officer
Ministry of the Environment, Conservation and Parks
Serving Members
Members and retirees rated their interactions with OPTrust at 9.1/10, on average.
Get the big picture
For more information on OPTrust’s strategy and results, see our full 2018 funded status report.
DOWNLOAD OUR 2018 FUNDED STATUS REPORT