Pension Report, January, 2021

Pension Report, ARM Chapter 12 Executive Meeting


January, 2021


Paul Heddon


There will be a 1% increase in your pension effective January 1, 2021.


OTPP along with Fidelity Investments and two other existing investors, invested $222 million dollars in a
company called Graphcore. The investment was led by our pension plan. Graphcore is a company that
has developed a new type of microprocessor specifically designed to support artificial intelligence


OTPP has also purchased 69.4% interest in Societa Cosdotti Italia, the largest independent gas
transmission operator in Italy. It is 1700 kilometers in length and transports natural gas to industrial and
urban areas in Italy. Eventually this line could be used to transport hydrogen or biomethane gas.
Canadian Pension Plans have returned to pre-pandemic solvency levels. The increase in the value of
equities in the market recovery has been very beneficial to them. Risks remain in the low rates for
government bonds, and the second wave of the pandemic, and its effect on the equity market.


CPP is increasing the contribution rate for 2021. This will enhance the pension payouts in the future. The
maximum CPP for 2021 is $1203.75 monthly at age 65. The maximum monthly payment at age 60 is
$770.40. You can increase your CPP by waiting until 70 years of age to take it. One can also collect CPP
at age 65 and pay into it while working until reaching 70 years. This will also increase your CPP pension


We are fortunate to have a pension plan with a cola. General Motors pensioner recipients had their
pension plan paid by the company. The plan has no cola. The loss of the cola factor will be detrimental
to the financial wellbeing of pensioners as time goes by. However, they have medical benefits paid for
their lifetime.


Teacher’s pension plan contributions including CPP payments, are 12% of their earnings. Having cola on
your pension is a very important benefit.

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