A Message from HOOPP President & CEO, Jim Keohane
HOOPP and the Government of Ontario reach agreement
Oct. 23, 2012
I am pleased to announce that HOOPP and the Government of
Ontario have reached a five-year agreement intended to ensure stability in the
funding of the pension plan. The agreement, which was negotiated in the best
interests of HOOPP's members, pensioners and employers, is reflective of the
Board's policies and approach as it relates to maintaining the price and
benefit stability of the Plan.
As part of the agreement, two important assurances were
given to the HOOPP Board:
- The current ratio for member and employer contributions,
where employers contribute $1.26 for every member dollar contributed, will not
change.
- HOOPP's assets will not be included in the government's
proposed “pooled assets” fund, intended to consolidate the management of
pension plan investments. We will continue to invest the $40.3 billion HOOPP
fund using in-house investment professionals.
HOOPP is
in a solidly funded position. We have been at least 97% funded in each and every valuation
filed since 1979. We were 103% funded at the end of 2011, with that percentage
continuing to improve throughout 2012. As a result of this solid funding, HOOPP
is well positioned to meet its pension obligations to its members.
Today's agreement is consistent with the Board's objectives
and assists in ensuring both the sustainability of the Plan and HOOPP's ability
to deliver on the pension promise.
