OPTrust fully funded for 15th consecutive year

posting date Posted: March 12, 2024

 

2023 Funded Status Report

TORONTO, March 12, 2024 – OPTrust today released its 2023 Funded Status Report, People. Purpose. Pensions., which details the Plan's financial results and funded status. In 2023, OPTrust remained fully funded for the 15th consecutive year and achieved a net investment return of 5.3 per cent. Over the past 10 years, the Plan's average net investment return is 7.2 per cent.

"At OPTrust, we have a clear purpose – to deliver peace of mind in retirement to our members," said Peter Lindley, President and CEO of OPTrust. "For the 15th consecutive year, OPTrust is fully funded, and the people we serve can continue to rely on a secure, sustainable pension."

For OPTrust members, investment returns account for more than 70 per cent of the benefits they receive in retirement, with more than $1.3 billion in entitlements paid in 2023, benefiting communities across Ontario. OPTrust's Member-Driven Investing (MDI) strategy is designed to deliver the total return needed to keep the Plan sustainable over the long term, without taking excessive risk. OPTrust's average annual net investment return since inception is 7.9 per cent.

"Against a backdrop of volatile markets, global conflict, and an affordability crisis, stability and security are more important than ever,” said Lindley. "By striving to construct a portfolio that is resilient to a variety of economic environments, we remain focused on the long term and in a strong position to pay pensions today and decades into the future."

OPTrust's annual Responsible Investing Report has once again been integrated into the Funded Status Report. In 2023, OPTrust made significant progress implementing its enhanced climate change strategy, including calculating the first Total Portfolio carbon footprint, and announcing an interim portfolio decarbonization target of 30 per cent by 2030 in support of achieving a net-zero portfolio by 2050.

"OPTrust's climate change strategy is designed with one purpose in mind: to protect our pension promise over the long term," said Lindley. “With a recognition of the increasing urgency to act on sustainability issues, we are taking steps today to protect our members' pension security through a transitioning global economy."

In 2023, OPTrust welcomed five additional nonprofit organizations and nearly 1,000 new members to reach a total membership of over 4,200 in OPTrust Select. OPTrust also continued to provide an exceptional service experience to members who rated their service satisfaction as 8.7 out of 10. OPTrust was recognized among the top 10 pension plans for service by CEM Benchmarking Inc.'s global rankings.

OPTrust maintained the discount rate at 3.0 per cent, net of inflation. Additional information about OPTrust's 2023 strategy and results is available in People. Purpose. Pensions. at optrust.com.

ABOUT OPTRUST

With net assets of $25 billion, OPTrust invests and manages one of Canada's largest pension funds and administers the OPSEU Pension Plan (including OPTrust Select), a defined benefit plan with over 111,000 members. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU and five by the Government of Ontario.

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MEDIA CONTACT

Claire Prashaw
Director, Public Affairs
OPTrust
1-416-681-3617 
cprashaw@optrust.com