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.
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