Ontario Teachers' Pension Plan

{{Short description|Ontario educational pension plan organization}} {{Primary sources|date=July 2017}} {{Use Canadian English|date=January 2026}} {{Use mdy dates|date=January 2026}} {{Infobox company | name = Ontario Teachers' Pension Plan Board | logo = Ontario Teachers' Pension Plan logo 2021.svg | type = Public–private partnership<ref name=":03">{{Cite book|last=Whiteside|first=Heather|title=Public-private partnerships in Canada|publisher=Fernwood Publishing|year=2016|isbn=978-1-55266-896-2|location=Halifax|oclc=952801311}}</ref> | location = | location_city = Toronto, Ontario | location_country = Canada | foundation = {{Start date and age|1990|1|1}} | key_people = {{ubl | Jo Taylor (CEO)<ref>{{cite web|url=https://www.otpp.com/en-ca/about-us/our-leadership/|title=Our leadership|website=Otpp.com|access-date=31 August 2023}}</ref> | {{nowrap|Steve McGirr (chairman)<ref>{{cite web|url=https://www.benefitscanada.com/news/ontario-teachers-appoints-new-chair-for-2019-122937|title=benefitscanada.com: Ontario Teachers' appoints new chair for 2019|website=benefitscanada.com|date=10 December 2018|access-date=10 December 2018|archive-date=20 August 2019|archive-url=https://web.archive.org/web/20190820212951/https://www.benefitscanada.com/news/ontario-teachers-appoints-new-chair-for-2019-122937|url-status=dead}}</ref>}}}} | num_employees = {{increase}} 2,000+ | industry = Pension fund | assets = {{increase}} C$247.5 billion<ref>{{cite web|url=https://www.otpp.com/en-ca/about-us/our-results/|title=Our results|website=Otpp.com|access-date=31 August 2023}}</ref> | assets_year = 2023 | subsid = Cadillac Fairview | homepage = {{URL|http://otpp.com}} }}

The '''Ontario Teachers' Pension Plan Board''' ({{langx|fr|Régime de retraite des enseignantes et des enseignants de l'Ontario}})<ref>{{cite web|title=À propos du RREO|url=http://www.otpp.com/fr/web/guest/corporate/about-teachers|website=Otpp.com|access-date=7 January 2013}}</ref> is an independent organization responsible for administering defined-benefit pensions for school teachers of the Canadian province of Ontario. Ontario Teachers' also invests the plan's pension fund and it is one of the world's largest institutional investors, acting as a partner organization of the World Economic Forum.<ref>{{Cite web |title=Ontario Teachers' Pension Plan |url=https://www.weforum.org/organizations/ontario-teachers-pension-plan/ |url-status=live |archive-url=https://archive.today/20220120223043/https://www.weforum.org/organizations/ontario-teachers-pension-plan |archive-date=2022-01-20 |access-date=2022-10-20 |website=World Economic Forum |language=en}}</ref> The plan is a multi-employer pension plan, jointly sponsored by the Government of Ontario and the Ontario Teachers' Federation.

As of December 31, 2024, the OTPP had over $266 billion in net assets, with a one-year total-fund net return of 9.4%, and a 7.4% 10-year total-fund net return. The OTPP employs a Quality Service Index to measure its performance. In 2024, 93% of members sampled expressed satisfaction with the OTPP's service.<ref>{{cite web | url=https://www.otpp.com/en-ca/about-us/our-results/annual-reporting/ | title=2024 Annual Report &#124; Ontario Teachers' Pension Plan }}</ref><ref name=":0">{{Cite web |title=Ontario Teachers' delivers positive return in first half of 2023 |url=https://www.otpp.com/en-ca/about-us/news-and-insights/2023/ontario-teachers-delivers-positive-return-in-first-half-of-2023/ |access-date=2023-08-31 |website=www.otpp.com |language=en}}</ref>

OTPP is one of Canada's top eight pension funds, nicknamed the "Maple 8" or "Maple Revolutionaries".<ref>{{Cite web |last=Ambachtsheer |first=Keith |date=2022-12-08 |title=How Peter Drucker Revolutionized Canada’s Public Sector Pension System: Lessons for Americans |url=https://corpgov.law.harvard.edu/2022/12/08/how-peter-drucker-revolutionized-canadas-public-sector-pension-system-lessons-for-americans/ |access-date=2025-06-10 |website=The Harvard Law School Forum on Corporate Governance |language=English}}</ref>

==History== Ontario Teachers' was established on January 1, 1990.<ref>{{cite web|title=OTPP History|url=http://www.otpp.com/web/guest/corporate/about-teachers/history-of-innovation|website=Otpp.com|access-date=7 January 2013}}</ref> Until then, Ontario teachers' pensions had been sponsored solely by the Ontario government. Assets of the plan had been invested in government bonds only. Currently, it invests globally in fixed income, public and private equity markets, real estate, infrastructure, natural resources, credit and venture capital through Teachers' Venture Growth (TVG).<ref>{{Cite web |title=Our investments |url=https://www.otpp.com/en-ca/investments/our-investments/ |access-date=2023-08-31 |website=www.otpp.com}}</ref>

==Organization== As of December 2024, the OTPP had over $266 billion in net assets.<ref>{{cite web | url=https://www.benefitsandpensionsmonitor.com/news/industry-news/ontario-teachers-posts-2663bn-in-assets-despite-missing-benchmark-by-35/391746 | title=Ontario Teachers' posts $266.3bn in assets despite missing benchmark by 3.5% }}</ref> The plan had 185,000 working members, and 158,000 pensioners with the average retirement age of 59, and a $50,700 starting pension.<ref>{{Cite web|title=About Ontario Teachers' - Ontario Teachers' Pension Plan|url=https://www.otpp.com/corporate/about-teachers|access-date=2021-08-03|website=www.otpp.com}}</ref> $8.1 billion was paid to retired Ontario teachers and their beneficiaries in 2024. Teachers contribute 10.4% of their annual salary below the Canada Pension Plan limit ($71,300), plus 12% of any salary above the CPP. A teacher who earns $85,000 in 2025 will contribute $9,059 or $754/month. Contributions are matched by the Government of Ontario.<ref>{{cite web | url=https://www.otpp.com/en-ca/members/life-events/learning-about-the-plan/defined-benefit-pensions/ | title=The basics of your pension }}</ref> Total member and government contributions are unknown but in 2025 the OTPP announced a $29 billion funding surplus. In 2014, OTPP reported a funding surplus of $5.1 billion for the first time in ten years.<ref>{{Cite web | url=https://www.cbc.ca/news/business/more-pension-plans-move-into-surplus-as-market-returns-improve-1.2594344 | title=More pension plans move into surplus as market returns improve |date=2014-04-01 | website=www.cbc.ca}}</ref> Ontario Teachers' is headquartered in Toronto, with regional offices in London, New York, Hong Kong, Singapore, and Mumbai.<ref>{{Cite web |title=Contact Us |url=https://www.otpp.com/en-ca/contact-us/ |access-date=2022-11-29 |website=www.otpp.com |language=en}}</ref>&nbsp; In January, 2020, Jo Taylor succeeded Ron Mock as President and Chief Executive Officer.<ref>{{cite web |title=Ontario Teachers' names Jo Taylor as next CEO to succeed Ron Mock {{!}} Financial Post |url=https://financialpost.com/executive/c-suite/ontario-teachers-names-jo-taylor-as-next-ceo-to-succeed-ron-mock |access-date=31 August 2023 |website=Financial Post}}</ref> Jo Taylor, had his compensation reduced from $5.6 million in 2021 to $5 million in 2022.<ref>{{cite web | url=https://www.benefitsandpensionsmonitor.com/news/industry-news/slight-changes-in-compensation-of-pension-fund-ceos/379732#:~:text=The%20CEO%20of%20Ontario%20Teachers,his%20compensation%2C%20totaling%20%244.21%20million | title=Slight changes in compensation of pension fund CEOs }}</ref> The Chair of Ontario Teachers' is Steve McGirr.<ref>{{cite web|website=otffeo.on.ca|title=New Chair for the Ontario Teachers' Pension Plan|url=https://www.otffeo.on.ca/en/news/new-chair-for-the-ontario-teachers-pension-plan/}}</ref>

==Investments== As one of Canada's largest institutional investors, Ontario Teachers' reported having $249.8 billion in net assets as of June 30, 2023, and over $266 billion at the end of 2024.<ref name=":0" /> OTPP reported a 9.4% one-year total-fund net return, and a 7.4% 10-year total-fund net return for 2024. In 2023, the fund underperformed with a 1.9% one-year total-fund net return. Underexposure in equities, and valuation adjustments and higher interest rates in infrastructure and real estate portfolios were listed as contributing factors.<ref>{{cite web | url=https://www.otpp.com/en-ca/about-us/news-and-insights/2024/ontario-teachers-announces-2023-results/ | title=Ontario Teachers' announces 2023 results }}</ref><ref>{{cite web | url=https://www.ai-cio.com/news/ontario-teachers-nets-9-4-return-assets-grow-to-185-5b/ | title=Ontario Teachers' Nets 9.4% Return, Assets Grow to $185.5B | date=21 March 2025 }}</ref> In 2024, 36% of gross investments were in Canada, with 33% in the US, 17% in Europe, the Middle East and Africa, 8% in Asia Pacific, and 6% in Latin America, .

Ontario Teachers' owns and manages a diversified portfolio of Canadian and international assets. Through its fully owned real estate subsidiary, Cadillac Fairview, Ontario Teachers' owns commercial properties that include the Toronto-Dominion Centre, Toronto Eaton Centre, the Pacific Centre in Vancouver, the Rideau Centre in Ottawa, and White City Place in London, UK.<ref>{{Cite web|title=Cadillac Fairview {{!}} Our Portfolio|url=https://www.cadillacfairview.com/portfolio/|access-date=2021-08-03|website=Cadillac Fairview|language=en-US}}</ref> It also has a growing portfolio of residential rentals in Montreal and Ottawa.<ref>{{cite web | url=https://retail-insider.com/retail-insider/2024/11/cadillac-fairview-to-add-residential-towers-at-cf-carrefour-laval/ | title=Cadillac Fairview to Add Residential Towers at CF Carrefour Laval | date=18 November 2024 }}</ref>

Through its private equity investment arm, Private Capital, Ontario Teachers' owns interests in companies such as Munchkin, PODS, Techem, GFL Environmental, and Shearer's Foods.<ref>{{Cite web|title=Private Capital Portfolio - Ontario Teachers' Pension Plan|url=https://www.otpp.com/investments/asset-groups/equities/private-capital/private-capital-portfolio|access-date=2021-08-03|website=www.otpp.com}}</ref> In 2001, Ontario Teachers' Pension Plan and Caisse de dépôt et placement du Québec were the sole two investors in a US$360 million fund raised by Canadian company Cordiant Capital.<ref name="Financial Post - 2013">{{Citation |last=Critchley |first=Barry |date=April 15, 2013|title=Montreal's Cordiant Capital, an investor in emerging market debt, raises US$250-million|publisher=Financial Post |url=https://financialpost.com/news/fp-street/montreals-cordiant-capital-an-investor-in-emerging-market-debt-raises-us250-million |access-date=November 4, 2022}}</ref>

Ontario Teachers' owned Camelot Group PLC, which held an exclusive licence to operate the UK National Lottery until January 31, 2024. It acquired a share of the Irish National Lottery in 2014. In July, 2023, OTPP sold its majority shareholding in Premier Lotteries Ireland to La Française des Jeux, a lottery and online gaming operator.<ref>{{cite web | url=https://www.otpp.com/en-ca/about-us/news-and-insights/2023/ontario-teachers-to-sell-premier-lotteries-ireland-to-fdj/ | title=Ontario Teachers' to sell Premier Lotteries Ireland to FDJ }}</ref>

Ontario Teachers' owns a substantial portfolio of infrastructure assets, including stakes in Birmingham Airport, Bristol Airport, Copenhagen Airport, and London City Airport, as well as international water and power utilities. Alongside PSP Investments, Ontario Teachers' owns Cubico Sustainable Investments, a leading provider of renewable energy.<ref>{{cite web|last=staff |first=I. P. E. |date=2020-12-15 |title=Ontario Teachers' and PSP acquire €1.5bn solar platform via Cubico|url=https://realassets.ipe.com/news/ontario-teachers-and-psp-acquire-15bn-solar-platform-via-cubico/10049606.article|access-date=2021-08-03|website=Real Assets}}</ref>

From 2003 to 2012, the fund was the principal owner of Maple Leaf Sports & Entertainment, the parent organization of the Toronto Maple Leafs, Toronto Raptors, Toronto FC and Toronto Argonauts.<ref>{{cite web|url=https://www.thestar.com/business/2009/08/20/teachers_pension_plan_boosting_stake_in_mlse.html|title=Teachers' Pension Plan boosting stake in MLSE|date=August 20, 2009|access-date=October 3, 2022|newspaper=Toronto Star}}</ref><ref name=otppgraphic>{{cite web|url=http://www.otpp.com/documents/10179/20932/MLSE+Infographic/d8ea6bed-5a05-4879-8b29-9e400488a251|title=Play-by-play|access-date=October 3, 2022|year=2012|publisher=Ontario Teachers' Pension Plan}}</ref> The franchise was sold to BCE Inc. and Rogers Communications in 2012.<ref name=sportsempire>{{cite news|url=https://www.reuters.com/article/us-mapleleaf-rogers-bce-idUSTRE7B80VN20111209|title=Toronto sports empire sold to Rogers and BCE|first=Euan|last=Rocha|date=December 9, 2011|access-date=October 3, 2022|work=Reuters}}</ref>

In 2017, it acquired Mémora Servicios Funerarias, a Spanish funeral provider, from 3i.<ref name="cityamturvill">{{cite news|last1=Turvill|first1=William|title=UK private equity giant 3i sells stake in Barcelona-based funeral services company Memora|url=http://www.cityam.com/268572/uk-private-equity-giant-3i-sells-stake-barcelona-based|access-date=July 19, 2017|work=City A.M.|date=July 17, 2017}}</ref>

In 2019, Ontario Teachers', along with Amazon and others, assisted in financing to help the New York Yankees regain ownership control of their regional sports network, the YES Network, resulting in a minority ownership in the network.<ref>{{cite news |last1=Blum |first1=Ronald |title=AP source: Yankees buy back YES control with Amazon help |url=https://www.apnews.com/3cff30de8b44464b8d0b6723cb620bcf |access-date=March 21, 2019 |work=AP News |date=March 8, 2019}}</ref>

In 2022, the pension fund was targeting investments in India, opening an office in Mumbai in September.<ref>{{Citation |last=Cacioli |first=Lucas |title=India's markets a priority target for Ontario Teachers' and CDPQ |url=https://www.asianinvestor.net/article/indias-markets-a-priority-target-for-ontario-teachers-and-cdpq/481671 |date=October 5, 2022 |publisher=Asian Investor |access-date=November 4, 2022}}</ref>

In 2021 and 2022, Ontario Teachers' invested US$75 million in FTX and US$20 million in FTX.US respectively, through its Teachers' Venture Growth platform.<ref>{{Cite web |last= |first= |date=2022-11-10 |title=Ontario Teachers' statement on FTX |url=https://www.otpp.com/en-ca/about-us/news-and-insights/2022/ontario-teachers--statement-on-ftx/ |url-status=live |archive-url=https://web.archive.org/web/20221115005208/https://www.otpp.com/en-ca/about-us/news-and-insights/2022/ontario-teachers--statement-on-ftx/ |archive-date=2022-11-15 |access-date=2022-11-15 |website=www.otpp.com |language=en}}</ref> Following FTX's collapse in early November 2022, Ontario Teachers' stated that it will write off the entirety of its US$95 million investment by the end of 2022.<ref>{{Cite web |date=2022-11-18 |title=Ontario Teachers' Pension Plan writes down FTX investment to zero |url=https://www.ctvnews.ca/business/article/ontario-teachers-pension-plan-writes-down-ftx-investment-to-zero/ |access-date=2022-11-29 |website=CTVNews |language=en}}</ref>

In June 2024, after Canadian pension plans lost a combined $1.24 trillion in their property portfolios, the worst fiscal year performance since the 2008 financial crisis, CEO Jo Taylor, told Bloomberg, "What’s worked famously well for the last 35 years may not work so well for the next five to 10." OTPP reportedly shifted authority away from Cadillac Fairview and brought their real estate investments in-house.<ref>{{cite web | url=https://www.benefitscanada.com/canadian-investment-review/alts/commercial-real-estate-challenges-forcing-canadian-pension-funds-to-re-evaluate-strategy-report/ | title=Commercial real estate challenges forcing Canadian pension funds to re-evaluate strategy: Report | date=8 July 2024 }}</ref><ref>{{cite web | url=https://www.mpamag.com/ca/news/general/canadian-pension-funds-rethink-real-estate-investments-after-124trn-loss/494412 | title=Canadian pension funds rethink real estate investments after $1.24trn loss }}</ref>

By December 2024, OTPP's Cadillac Fairview had over 1,160 residential rental units under construction, with projects at CF Carrefour Laval and 750 Peel Street in Montreal, and CF Rideau in Ottawa.

In March 2025, it was reported that OTPP sold Amica Senior Lifestyles and its assets and affiliates for C$4.6 billion ($3.2 billion) to Welltower. Welltower stated it purchased: 31 in-place properties at a "substantial discount"; seven properties under construction; and, nine development parcels in "highly affluent and supply constrained neighborhoods" in Ontario and British Columbia. OTPP bought the senior home operator, Amica, in 2015 for $578 million.<ref>{{cite web | url=https://www.ai-cio.com/news/ontario-teachers-makes-nearly-8-fold-gain-from-c4-6b-amica-sale/ | title=Ontario Teachers' Makes Nearly 8-Fold Gain from C$4.6B Amica Sale | date=10 March 2025 }}</ref>

In June 2025, the board announced they had partnered with Gordion, and would acquire two buildings with 425 rental residences in the Greater Stockholm area, as part of their "growing European residential portfolio."<ref>https://www.otpp.com/en-ca/about-us/news-and-insights/2025/ontario-teachers-signs-first-residential-acquisition-in-sweden-through-new-partnership-with-gordion/</ref>

In August 2025, Ontario Teachers' Pension Plan invested $40 million funding in AI-powered cloud HCM suite platform Darwinbox.<ref>{{cite web |title=Darwinbox secures $40 million funding from Canada's OTPP |url=https://economictimes.indiatimes.com/tech/funding/darwinbox-secures-40-million-funding-from-canadas-otpp/articleshow/123306193.cms |website=The Economic Times |date=14 August 2025}}</ref>

== ESG and responsible investing == {{Promotional section|date=August 2021}} On June 6, 2018, a group of global institutional investors, led by Ontario Teachers' and CDPQ, in collaboration with the Government of Canada, announced a project to advance key G7 objectives.<ref>{{Cite news|title=Caisse, Ontario Teachers unveil G7 investor alliance|url=https://financialpost.com/news/fp-street/caisse-ontario-teachers-unveil-g7-investor-alliance|access-date=2021-08-03|website=financialpost|language=en-CA}}</ref> Partner Institutions AIMCo, Allianz, Aviva, CalPERS, CDPQ, Generali, Natixis Investment Managers, OMERS, Ontario Teachers', OPTrust, and PGGM pledged to commit resources, expertise and networks to three initiatives: enhancing expertise in infrastructure financing and development of emerging and frontier economies; opening opportunities for women in finance and investment worldwide; and speeding up the implementation of uniform and comparable climate-related disclosures under the FSB-TCFD framework.

On September 26, 2018,<ref>{{Cite web|date=2018-09-26|title=Ontario Teachers' signs tobacco-free investment pledge|url=https://www.benefitscanada.com/canadian-investment-review/db-investments/ontario-teachers-signs-tobacco-free-investment-pledge/|access-date=2021-08-03|website=Benefits Canada.com|language=en}}</ref> Ontario Teachers' joined finance, health and government leaders in signing the Tobacco-Free Finance Pledge (of the NGO Tobacco-Free Portfolios), which commits the pension plan to no longer invest in tobacco companies.

On January 21, 2021,<ref>{{Cite web|date=2021-01-22|title=Ontario Teachers' Pension Plan to aim for net-zero greenhouse gas emissions by 2050|url=https://www.thestar.com/business/2021/01/22/ontario-teachers-pension-plan-to-aim-for-net-zero-greenhouse-gas-emissions-by-2050.html|access-date=2021-08-03|website=thestar.com|language=en}}</ref> Ontario Teachers' announced its commitment to net zero greenhouse gas emissions by 2050, disclosing that its strategy will focus on financing climate solutions that replace fossil fuels and reduce emissions.

== Media coverage == On the January 12, 2004 episode of ''Rick Mercer Report'', comedian Rick Mercer had a short segment about the Ontario Teachers' Pension Plan, in which he humorously contrasted the plan's beneficiaries (i.e. teachers) with the investments the plan had made, including shopping malls and the tobacco industry.<ref>{{cite web|last1=Mercer|first1=Rick|title=Rick Mercer Report: Ontario Teachers Pension Plan|date=3 March 2010 |url=https://www.youtube.com/watch?v=GQpDpRE13mI |archive-url=https://ghostarchive.org/varchive/youtube/20211221/GQpDpRE13mI |archive-date=2021-12-21 |url-status=live|publisher=YouTube|access-date=2017-07-19}}{{cbignore}}</ref>

On December 2, 2008, New York lawyer Marc Stuart Dreier was arrested at Ontario Teachers' Toronto offices and charged with impersonating, through his words and by the use of business cards, Michael Padfield, a senior lawyer with the pension plan. A receptionist in the Ontario Teachers' offices had become suspicious and notified Toronto police. Dreier was attempting to close a sale of forged Ontario Teachers' promissory notes, worth US$44.7 million, by meeting with the buyers right in the Ontario Teachers' offices.<ref>{{cite news|url= https://www.nytimes.com/2008/12/06/nyregion/06lawyer.html|title=Lawyer's Arrest in Canada Has His Firm in Chaos|author=Cowan, Alison Leigh and William K. Rashbaum|newspaper=The New York Times|date=2008-12-05|accessdate=2009-03-30}}</ref>

A 2012 article in ''The Economist'' titled "Maple Revolutionaries" about Canada's largest public pension funds features Ontario Teachers', saying it pioneered a new style of investing in the 1990s by managing more of its portfolio internally and doing more direct investing. Then Ontario Teachers' CEO Jim Leech called Canadian pension funds a "new brand of financial institution" likened to depoliticized sovereign-wealth funds.<ref>{{Cite news|date=2012-03-03|title=Maple revolutionaries|newspaper=The Economist|url=https://www.economist.com/finance-and-economics/2012/03/03/maple-revolutionaries|access-date=2021-08-03|issn=0013-0613}}</ref>

== See also == * Teachers Insurance and Annuity Association of America

==References== {{Reflist}}

==External links== * {{Official website|http://www.otpp.com}} {{Ontario Teachers&#39; Pension Plan|state=expanded}} {{Authority control}}

Category:Ontario Teachers' Pension Plan Category:Financial services companies established in 1989 Category:Public pension funds in Canada Category:Investment companies of Canada Category:Private equity firms of Canada Category:Educational organizations established in 1989 Category:Organizations based in Toronto Category:1989 establishments in Ontario Category:Infrastructure investment