OTPP suffers major shortfall of $12.7 billion

Plan may have to increase contributions or reduce benefits
By Sarah Dobson
|hrreporter.com|Last Updated: 05/04/2009

The preliminary funding valuation as of Jan. 1, 2008, shows a $12.7-billion shortfall between the assets and liabilities of the Ontario Teachers’ Pension Plan (OTPP).

A balanced funding valuation must be filed with the provincial regulator by Sept. 30, 2008, showing the plan is likely to have enough money to cover the cost of future pensions for all current members.

To bring the plan back into balance, the Ontario Teachers’ Federation and the government can increase contributions, reduce future benefits or use a combination.