Moving to conditional indexing is just a way to cut benefits. 

Conditional indexing is used as a risk-management tool that has allowed many of our peer plans to restore their plans to full health, while still providing indexing when affordable – which these plans have been able to do to date. 

Here are the facts: 

  • Other major jointly trusteed pension plans are dealing with the challenges of managing a defined benefit pension plan such as aging, plan maturity and uncertain financial markets.
  • However, many of the gold standard plans in Ontario – like the Ontario Teachers’ Pension Plan (OTPP) and the Healthcare of Ontario Pension Plan (HOOPP) – have already dealt with the issues by making essential plan changes, including the introduction of conditional indexing. That’s one of the main reasons why they find themselves in such financially healthy positions today.
  • The draft Funding Management Strategy (FMS) includes guidelines that would support conditional indexing and would ensure that employers will see no reduction in contribution rates unless members receive indexing.
  • Pension plans are, by their nature, extremely long-term vehicles, with liabilities that can extend for 50 years and more. It’s our job to look to the future – and to ensure that the Plan remains sustainable, meaningful and affordable for generations to come.
MYTH #6 - The goal of the Comprehensive Plan Review is to cut benefits because employers just want to reduce their contributions.
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