HOOPP well-positioned for growth
Comment on recent media reports of "superfund" in Ontario
TORONTO (May, 2009): There have been a number of media reports of late regarding a proposal for the creation of one "superfund" in Ontario - a giant pension fund that would amalgamate all existing major and smaller plans.
The go-forward strategy for HOOPP is one of growth, and broader coverage for the healthcare sector. HOOPP has no plans to become part of a larger pension fund. In order for a private pension trust like HOOPP to integrate with another plan, all five Settlors (the OHA, and the four unions - ONA, CUPE, OPSEU and SEIU) would have to agree and invite the proposal. Such a suggestion would not be favourably received by the Settlors, and there is no existing legislative means for integration to occur without their assent.
HOOPP's growth strategy dovetails with the findings of the recent Ontario Expert Commission on Pensions, which called for large pension plans to play a greater role in providing pension benefits to Ontarians. HOOPP already plays a key role in attracting and retaining high quality healthcare workers for Ontario.
HOOPP's investment results for 2008, as detailed in our Annual Report, are among the best in Canada. HOOPP is the fourth-largest pension fund in Canada with assets of $26.7 billion. This gives HOOPP the scale, the efficiency in terms of low cost per member, the people, and the governance model needed for growth.
HOOPP is supportive of the idea of larger pension funds managing the investments of smaller funds, but opposes the idea of putting all of the province's pension eggs in the same basket. HOOPP has shared this perspective with the Ontario Government and looks forward to working with the government on the best means of expanding pension coverage in the province. One needs to look no farther than the province of Quebec to see the risks a "superfund" strategy can bring.
HOOPP is well-positioned for the future, and as an organization, is confident in the Plan's ability to deliver on its fiduciary duty to members, pensioners, and employers - to preserve the pension promise. HOOPP serves nearly 250,000 members and retirees, and pays out just under $1 billion in pensions each year. HOOPP has been a part of Ontario's healthcare community since 1960.
