Towers Perrin Inc. was retained by the Board of Trustees for the Hospitals of Ontario Pension Plan (the Plan) to perform an actuarial valuation of the assets and the going concern liabilities of the Plan as at December 31, 2007.  This valuation is for the purpose of inclusion in the Plan’s consolidated financial statements, and is prepared in accordance with Section 4100 of the Canadian Institute of Chartered Accountants Handbook. 

We have undertaken such a valuation and provided the Board with our related actuarial report.  As this valuation was undertaken for purposes of the Plan’s consolidated financial statements under Section 4100 of the Canadian Institute of Chartered Accountants Handbook, it might not be appropriate for other purposes and should not be relied upon or used for any other purpose.

The valuation of the Plan’s going concern liabilities was based on:

• Members demographic data provided by the Hospitals of Ontario Pension Plan as at December 1, 2007 and members’ pay data which was provided as at December 31, 2006, all of which was projected to December 31, 2007 using management’s estimates of experience for the intervening periods;
• Methods prescribed by the Canadian Institute of Chartered Accountants for pension plan financial statements; and
• Assumptions about future events (for example, future rates of inflation and future rates of return on the pension fund) which, having been developed by Plan management and Towers Perrin, have been adopted by Plan management as its best long-term estimate of future events.

Changes have been made to the actuarial assumptions since the previous valuation for the purpose of the Plan’s consolidated financial statements at December 31, 2006 as described in the notes to the consolidated financial statements.  The valuation of the Plan’s assets was based on financial information provided by the Hospitals of Ontario Pension Plan.

The objective of the consolidated financial statements is to fairly present the financial position of the Plan as at December 31, 2007 as a going concern.  While the actuarial assumptions used to estimate liabilities for the Plan’s consolidated financial statements are reasonable in our opinion, the Plan’s future experience will inevitably differ, perhaps significantly, from the actuarial assumptions.  Any difference between the actuarial assumptions and future experience will emerge as gains or losses in future valuations, and will affect the financial position of the Plan, and the contributions required to fund it, at that time.

We have reviewed the data used for the valuation, and have made tests of reasonableness and consistency and, in our opinion, the data is sufficient and reliable for the purposes of the valuation.  We also believe that the methods employed in the valuation and the assumptions are appropriate for the purposes of the valuation. 

Our opinions have been given, and our valuation has been performed, in accordance with accepted actuarial practice.

Towers Perrin Inc.

Stephen P. Bonnar		Gerald F. Schnurr
Fellow, Canadian Institute of Actuaries		Fellow, Canadian Institute of Actuaries

April 2, 2008