Skip to main content

Ontario Finance Minister, The Honourable Dwight Duncan spoke to the media and answered questions during a pre-budget press conference in his office in Toronto on March 26, 2012.

Deborah Baic/The Globe and Mail/Deborah Baic/The Globe and Mail

The Ontario government has been advised to follow the lead of other jurisdictions within Canada and internationally by creating a massive pension fund to manage the retirement savings of public-sector workers.

A report commissioned by the government says pooling various pension plans together under one roof would create economies of scale, reduce administration costs and broaden investment opportunities, particularly for smaller funds.

The report, released on Friday, recommends that the new pension fund manage at least $50-billion in assets. "There is strong evidence to suggest that large pension funds outperform smaller and medium-sized funds," says the report, written by William Morneau, executive chairman of consulting firm Morneau Shepell.

Story continues below advertisement

Ontario already has three large funds – the Ontario Teachers' Pension Plan, the Ontario Municipal Employees Retirement System and the Healthcare of Ontario Pension Plan, which together manage just over $212-billion in assets.

But it also has dozens of tiny funds that each manage less than $1-billion in assets. The report says a group of funds that together manage assets of $100-billion on behalf of a diverse group of public-sector workers – ranging from university professors to hospital custodians and public transit employees – should be considered for the pooled arrangement. It recommends that the government introduce legislation making participation mandatory.

Finance Minister Dwight Duncan was not available for comment on Friday. He asked Mr. Morneau to look at pooling pension-fund assets to help the cash-strapped province curb spending and erase a projected deficit of $14.4-billion.

Mr. Morneau estimates that creating a pooled fund would produce annual savings of between $75-million and $100-million. British Columbia and Alberta both have investment firms that manage pooled assets from several public-sector pension plans. Britain is looking at similar measures.

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter