OPTrust, which manages the assets of the C$20.3 billion ($16.1 billion) Ontario Public Service Employees Union Pension Plan, Toronto, created a new defined benefit plan for public sector, charitable and not-for-profit employers that do not offer a DB plan.
Participants in the new plan, OPTrust Select, need not be members of OPSEU, said spokesman Joe Vecsi.
OPTrust Select employers and participants each are required to contribute 3% of earnings with an annual pension accrual rate of 0.6% of earnings, according to OPTrust's website.
The plan will be a shared-risk plan, with earnings upgrades and cost-of-living increases dependent on OPTrust Select's annual funded status, Mr. Vecsi said. OPTrust's investment staff will oversee investments in the new plan, said Hugh O'Reilly, president and CEO of OPTrust, in a statement on the OPTrust website.
"OPTrust Select brings the advantages of our large scale and investment expertise to more Ontarians who otherwise wouldn't have access to a DB plan and a secure retirement," Mr. O'Reilly said. "The OPSEU Pension Plan and its members will also benefit from OPTrust Select by creating greater sustainability over the long term through the allocation of risk and operational costs over a broader membership base."
