Teachers' Pension Plan posts 9.76% return and reaches more than $6 billion in assets in 2024, while retiree numbers outpace active members
Teachers’ Pension Plan Trustee Inc. (TPPTI) has released its 2024 Annual Report for the Teachers’ Pension Plan (TPP), detailing improved investment returns, a higher funded ratio, and ongoing efforts toward long-term financial sustainability.
As of December 31, 2024, the Plan’s funded status rose to 81.1 percent from 78.1 percent in 2023. This progress brings the Plan closer to its 80–90 percent funding target range set for the end of 2025.
Net assets totalled $6.172bn, while actuarial liabilities stood at $7.614bn, resulting in an unfunded liability of $1.442bn.
The plan posted a net one-year investment return of 9.76 percent, outperforming the actuarial discount rate of 5.80 percent but falling short of the policy benchmark of 12.54 percent.
“Our investment approach delivered meaningful growth while continuing to mitigate risks in a volatile market environment,” said TPPTI Chair John Rogers.
Gross returns reached 9.97 percent. Total assets available for benefits rose by $413m year over year.
Plan maturity continues to be a concern. The ratio of active to retired members stood at 0.98, placing it among the lowest in the country. Each year, the Plan faces a net cash outflow of $150–200m.
In Rogers’ words, “We continue to be hopeful that the Plan Sponsors will consider effecting fundamental changes to improve the Plan’s long-term financial sustainability.”
Membership as of year-end totalled 35,529, which included 730 new members: 215 active, 87 retired, and 428 inactive. Active members numbered 14,082 while retired members totalled 14,381.
The average age of an active member was 44.0 years, and average pensionable earnings were $87,235.
The average lifetime pension for retirees was $31,840, with 30 retirees over 100 years old.
In 2024, the Plan paid out $450m in retiree, survivor, disability benefits, and refunds. Member and employer contributions, including past service purchases, amounted to $277m.
Additionally, the Province made a special contribution of $44m.
TPPTI initiated a new Asset Liability Modelling Study in 2024, expected to conclude by mid-2025. This initiative aims to inform future investment decisions and enhance the Plan’s risk and return framework.
Other key developments included the introduction of a portable alpha program, increased investments in natural resources and renewable infrastructure, and preparatory work for a master trust pooled investment structure.
