First and only ONN-recommended sector-wide pension plan
TORONTO, Sept. 24, 2018 /CNW/ - OPTrust Select, the new defined benefit solution from OPTrust, has today been recommended by the Ontario Nonprofit Network (ONN) as the pension plan of choice for organizations in the nonprofit sector. It is the first and only ONN-recommended sector-wide pension plan for the 58,000 nonprofit organizations and over one million workers in Ontario. OPTrust Select, which launched in April of this year, was designed specifically for employers and employees in the charitable, nonprofit and broader public sectors.
"People in nonprofit organizations work tirelessly to support and strengthen communities, and they deserve to know their retirement is secure," said Hugh O'Reilly, President and CEO of OPTrust. "We are thrilled to have the opportunity to work with the ONN. We will be able to deliver secure income to thousands of workers across the nonprofit sector, helping those who do good, do well in retirement."
The ONN has been working for years to support Ontario's nonprofit sector by taking a leadership role in championing decent work, including exploring pension plan options for the sector. The ONN and its two pensions task forces held discussions with several plans between 2015 and 2018. In September 2018 the ONN's board of directors accepted the recommendation of the ONN pensions implementation task force and recommended OPTrust Select. ONN has no involvement in the management of OPTrust Select.
"This is a game-changer, not just for the million employees in Ontario's nonprofit sector, and their families, but for the sector as a whole," said Cathy Taylor, Executive Director of ONN. "By adopting this pension, nonprofit employers will demonstrate their leadership in the decent work movement, living their values of supporting their staff as well as the people they serve. With this pension, the sector will attract and retain more high-calibre professional staff with the skills and knowledge to deliver huge public benefit to the people of Ontario for years to come."
OPTrust Select, which offers a defined benefit pension at a moderate cost, will provide members with a steady stream of secure, reliable retirement income and includes the following features:
- Members contribute 3% of earnings and employers match the contributions
- An annual pension accrual rate of 0.6% of earnings;
- Benefit upgrades and cost of living increases, dependent on the Plan's funded status and annual Board approval.
OPTrust Select is targeted to Ontario workplaces in the broader public sector, charitable and nonprofit groups that do not have a workplace defined benefit pension plan but may have a defined contribution plan, a group RRSP, or no retirement savings arrangement at all.
With net assets of over $20 billion, OPTrust invests and manages one of Canada's largest pension funds and administers the OPSEU Pension Plan, a defined benefit plan with over 92,000 members and retirees. 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.
ONN is the independent nonprofit network for the 58,000 nonprofits in Ontario, focused on policy, advocacy and services to strengthen Ontario's nonprofit sector as a key pillar of our society and economy. ONN works to create a public policy environment that allows nonprofits to thrive. We engage our network of diverse nonprofit organization across Ontario to work together on issues affecting the sector and channel the voices of our network to government, funders, and other stakeholders.
SOURCE OPSEU Pension Trust (OPTrust)
For further information: Media Contact: Claire Prashaw, Manager, Public Affairs, OPTrust, 1-416-681-3617, [email protected]; Estelle Taylor, Manager, Communications and Network Engagement, Ontario Nonprofit Network, 1-416-642-5786 ext. 509, [email protected]