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People. Purpose. Pensions.

2023 Funded Status Report

Highlights for members





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2023 Highlights

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Fully funded for
15th consecutive year

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5.00%
nominal discount rate

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$25 billion
in net assets

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5.3%
one-year net investment return

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7.2
10-year average net investment return (2014-2023)

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Employee resource groups (ERGs) continue to grow and drive culture

Peter Lindley, President and Chief Executive Officer at OPTrust

Message from our CEO

Fully funded in 2023

The past year was marked by volatile markets, geopolitical instability, and rising interest rates to tackle high inflation. Particularly in Canada, this led to increased consumer prices, surging mortgage costs and sluggish economic growth. Against this backdrop, OPTrust posted a one-year net investment return of 5.3 per cent. This brings OPTrust's 10-year net investment return to 7.2 per cent. We are long-term investors and the measure that matters is our funded status. OPTrust is fully funded for the 15th consecutive year, allowing us to deliver on our mission to pay pensions today and preserve pensions for tomorrow.

Supporting members

We take great pride in serving our members through all stages of their careers and during retirement. Our members tell us they appreciate the service we provide, consistently giving us a strong service rating.

Protecting our pension promise

OPTrust's climate change strategy is designed with one purpose in mind: to protect our pension promise over the long term. In December 2023, we released a one-year update to our enhanced climate change strategy, detailing the progress we have made since 2022 and the goals we have set to strengthen the fund's resiliency to climate change.

Peter Lindley
President and Chief Executive Officer

"Our five-year strategic plan aims to enhance the Plan's sustainability, invest in our people and strengthen our operational capabilities to create an OPTrust that is ready to meet the challenges of the future."

Pension Funding

OPTrust’s mission is paying pensions today, preserving pensions for tomorrow. The Plan’s sponsors (the Government of Ontario and OPSEU) set contribution and future benefit levels based on the Plan’s funded status. OPTrust is fully funded for the 15th year in a row.

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road in countryside

Your pension is based on a formula using your earnings and years of service.

We seek to maintain a balance between:

  • Benefit security
  • Contribution rate stability
  • Fairness between the two schedules of benefits
  • Intergenerational equity, which means every generation of members will pay a fair amount for the benefits they receive.

Serving Members

We take great pride in engaging our members during all stages of their careers. Whether they are starting out, mid-career or approaching retirement, members are confident that our team will guide them as they assess their pension options and make important decisions.

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2023 Highlights

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Over 111,000
members

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8.7/10
member service rating

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Supported members through approximately
58,000 life events

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Over $1.3B
in entitlements paid

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Top 10
CEM Benchmarking Inc. global ranking

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5 new employers
in OPTrust Select, growing membership to over 4,200

Lori Nikkel
Jerry Arnold
Suri Bal
Zeeshan Liaqat

"The people at OPTrust are engaged in purposeful work. A sustainable pension, fully funded for 15 consecutive years, is representative of OPTrust delivering pensions and peace of mind for our members."

Peter Lindley
President and Chief Executive Officer

Investment Strategy and Performance

Investment returns account for more than 70% of the benefits we pay to members when they retire. To achieve this, we manage a globally diversified portfolio of assets and seek the best opportunities for value creation. Balancing return expectations against funding risks ensures we have sufficient assets to pay pensions now and in the future.

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Total Portfolio investment performance

Total Portfolio investment performance chart

The Total Portfolio return is net of management fees, transaction costs and investment administration expenses.

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Our Member-Driven Investing philosophy

  • We invest Plan assets to help deliver pension security for our members.
  • Our Member-Driven Investing (MDI) strategy is the application of a Total Portfolio approach, in which we strive to deliver the total return, after all costs, needed to keep the Plan sustainable without taking excessive risk.
  • We strive to construct our portfolio to be resilient to different economic and market environments to the extent possible, helping us deliver attractive risk-adjusted returns over the long term.

Investing at home and internationally

We have access to a broad set of investment opportunities. About 17.4 per cent of our investments are in Ontario while about 34.5 per cent are in Canada. Our international footprint covers the U.S., Europe, Asia Pacific and Latin America. This global approach offers diversification and return-enhancement benefits to the Total Portfolio and is an important part of our investment program.

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  • Ontario: 17.4%
  • Canada: 34.5%*
  • U.S.: 46.0%
  • Europe: 10.9%
  • Asia Pacific: 7.7%
  • Latin America: 0.9%

Based on country of risk, location of primary income or location of property.

Gold, commodity and funding portfolios are excluded from exposures.

* Includes Ontario.

Responsible Investing

OPTrust's Responsible Investing (RI) program is an integral component of our investment strategy, contributing to sustainable pension security for our members.

man working on solar panels
B6, an office development site in downtown Vancouver, British Columbia

We recognize that environmental, social and governance (ESG) factors can materially affect investment risk, return and our reputation.

Every investment professional at OPTrust is responsible for including ESG risks and opportunities in their decision making and prioritizing stewardship in their asset management activities.

This approach supports the Plan in navigating an increasingly complex investment environment and is grounded in our fiduciary duty to our members.

2023 Highlights

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Released an update on our climate strategy with metrics and targets to track and drive progress towards a more climate-resilient portfolio, as well as a climate metrics toolkit to share our learnings from this process with other investors.

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Completed our first full-scale data collection cycle for COMPAS (Capturing OPTrust Management and Progress Around Sustainability), our internally developed ESG data program.

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Voted at 880 company meetings in 29 countries.

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Completed our Responsible Investing Partner Evaluation framework on 100% of new externally managed investments and engaged with prioritized partners.

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Engaged 113 companies on key ESG issues.

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Continued to be an active voice in investor collaborative initiatives, including UNPRI’s Private Equity Advisory Committee, Thinking Ahead Institute’s climate change working group, and Ceres’ private equity working group.

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See the big picture

For more information on all our results, read our 2023 Funded Status Report.

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