In addition to remaining fully funded and lowering its discount rate, the OPSEU Pension Trust returned one per cent in 2018.

This compares to a 9.5 per cent return in 2017, six per cent in 2016 and eight per cent return in 2015.

The plan’s real discount rate was lowered to 3.15 per cent, net of inflation, from 3.30 per cent in 2017. This move added conservatism to the plan’s funding valuation by calculating a higher liability value, which helps to protect the plan from future market volatility, noted the OPTrust in a press release.

Read: Equities boost OPTrust return to 9.5% in 2017

“OPTrust’s objective is to maintain the funded status of the Plan without taking excessive risk,” said Doug Michael, interim president and chief executive officer of the OPTrust. “In the worst year for markets since the global financial crisis, we maintained our fully funded status for the tenth consecutive year and increased the long-term stability of the plan by lowering our discount rate.”

The OPTrust also noted it received high service scores from members and retirees, with service satisfaction at 9.1 out of 10. As well, it touted its risk management for helping to improve the plan’s funded status, maintain stability and increase its ability to weather a severe market downturn.

“As the world continues to change at an increasingly rapid pace, OPTrust’s members can know their pension plan is stable and secure,” said Michael. “We remain focused on the long term rather than day-to-day changes within the market. For our members, the funded status is the measure that matters.”

Read: OPTrust boosts internal management through new in-house trading floor

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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