CANADA - The Ontario Teachers' Pension Plan added C$13.3bn ($13.9bn) in investment income in 2010, the highest in its history, but continues to face severe funding woes.
The pension fund returned 14.3%, beating its target benchmark of 9.8%. Total assets reached C$107.5bn at the end of 2010.
But chief executive Jim Leech said the pension fund continues to "face serious funding challenges".
The deficit is expected to hit C$17.2bn in 2011 from C$17.1bn, despite record income.
Leech said: "The root cause of the C$17.2 billion preliminary funding shortfall is a combination of factors: member longevity, retirement periods that exceed working years, low real interest rates, which reflect lower economic growth going forward, and the maturity of the plan, which now receives C$1.8 billion less in contributions than it pays out annually."
The plan sponsors, the Ontario Teacher's Federation and the Ontario government, have to file a recovery plan with regulators by 2012 outlining how it plans to solve the deficit problem.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.