We are moving through an era where the status quo must be questioned and all tax-payer-funded-expenses must be subject to rigorous review. This article on the overlap, extra costs and potential waste of individual public pension plans is worth consideration:
“You know them by their handles: HOOPP, OMERS, OPB, OP Trust, and Teachers. These five defined benefit pension plans make up the bulk of the pension assets for public sector workers in Ontario. Which means that the Ontario taxpayer is on the hook for each when the markets fail to produce sufficient capital growth and income to meet the contractually promised benefits. With $338 billion of collective investment assets at the start of the 2011 fiscal year, there is a lot a taxpayer risk when the market wanes.
Each of the five plans has its own unique qualities and history. HOOPP is known to be a plan filled with younger workers in the medical field, while the Teachers is a more “mature” vehicle of teachers who often live to 90 or 100 years of age or more. If you live in London, Ontario and work for the public sector on the Provinical side, these are the five entities that the government set-up years ago to serve your needs.
But you’ve got to ask yourself: why a London firefighter, a London teacher, a local OPP officer, a local MTC employee and a nurse at St. Joseph’s Hospital might all be served by different pension plan managers with seemingly different strategies and risk tolerance levels? That can’t be the most efficient way to manage scarce financial resources in wild stock and credit markets, particularly when the same taxpayer winds up funding the shortfall if things don’t go as hoped. Which has been the case for at least the past three years.”
See the whole article: Does Ontario really need five pension plans?