Ontario Teachers’ Pension Plan head office in TorontoSami Siva
Does Ontario really need five big pension funds for different varieties of government workers?
Writing on his Wellington Financial blog, venture capitalist Mark McQueen makes a strong argument that maybe the province doesn't need OP Trust, HOOPP, OTPP, OPB and OMERS.
Under the current system, municipal employees are in one fund, health-care workers in another, teachers in a third, people who are on government boards and commissions in a fourth and unionized Ontario government workers are in a fifth.
That means five sets of books, five actuarial reports, five chief executives, five investment teams and five back offices.
What's more, as Mr. McQueen points out, you can get into situations on the investment side -- in private equity -- where funds are bidding against each other, driving up prices of assets.
How much could pensioners and taxpayers save by combining some or all of these operations?
In tightened times, it's a question worth asking.