“In our case, we've got a funding ratio of 111 %. People get into trouble… when they're forced into a risk spot… we can be the master of our own destiny.”
Ontario Teachers' Pension Plan · Capital Allocators - Inside the Institutional Investment Industry · Building the Total Portfolio at Ontario Teachers - Stephen McLennan
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What was described
Maintain a funding ratio of 111 % for the pension plan
111 %
Said nearby on the same subject
“If a corporation replaces a human worker with an algorithm, that algorithm should still trigger FICA taxes. The company pays into pension funds to maintain the social safety net.”
“If you look at some of the larger, I would say more sophisticated pension plans, particularly those in Canada, they may have an allocation up to 20% to infrastructure, where we typically in Australia would probably target more like five.”
“If you’ve got the ability to go a 50-50 LVR, say loan to value ratio, you certainly should look at that. So you’re not drowning in the debt of the fund or at risk of increasing interest rates.”