Barbara Zvan,
UPP President and CEO
UPP President and CEO
Gale Rubenstein,
UPP Board Chair
UPP Board Chair
Barbara Zvan,
UPP President and CEO
UPP President and CEO
A message from the CEO
I am thrilled to share this annual report, providing a snapshot of UPP’s pivotal first year as Ontario’s newest jointly sponsored pension plan, and the first tailored by and for Ontario’s university sector.
At the start of UPP’s decade-long journey, those involved—university unions, faculty associations, administrators, and other staff groups —likely each had many goals, but one common vision: retirement security tailored for the entire Ontario university community. Through many years and extensive negotiations, our founders never lost sight of their vision, and worked tirelessly to bring it to fruition.
I, and the entire team at UPP, are deeply inspired by their ingenuity and determination, and honoured to continue their work and deliver our shared vision.
Gale Rubenstein,
UPP Board Chair
UPP Board Chair
A message from the Chair
It is my great privilege and pleasure to introduce UPP’s first annual report, marking another milestone along a remarkable journey.
You will see that this inaugural report, capturing the Plan’s first six operating months from July 1 to December 31, 2021, reflects a period of profound transition and foundation building. As our organization and capacity grow and evolve in service of our members present and future, so too will our reporting. This time next year, we will have had a full year of operations and will introduce more information into our annual report with that fuller experience.
We have much to share about how far we have come since the Plan’s inception and about our vision for the exciting road ahead.
Fully funded with sustainable pension security at the core
At December 31, 2021
111%
Fully funded
$1.2B
Funding surplus
$254M
Total pension benefits paid in the last half of 2021
01
A decade in the making
Employees and employers came together to build UPP. We would like to recognize the extraordinary efforts of this plan’s founders. It is our privilege to continue their work.
2009
Discussions begin between university unions, faculty associations, administrators, and other staff groups about customizing a JSPP to reshape and sustain the retirement income system in the Ontario university sector.
2014-2015
The creation of a new JSPP
does not happen often and
requires legislative and regulatory
amendments to allow the
conversion and transfer of single-employer
pension plans to a JSPP.
Legislative changes to this effect
are drafted in 2014 and come into
place in 2015, marking a historic
step forward.
2016-2017
Deep discussions happen among university administration, faculty associations, unions, and non-unionized staff on UPP’s organizational structure, terms, and participants. Three initial university partners and associated unions and faculty associations step forward as UPP’s founding participants, with the plan for others to join over time.
Joint decision-making and collaboration between these parties continues as a cornerstone of UPP’s governance structure.
2018
A joint Milestones Agreement was established to set out the key steps required to establish UPP.
2019
Pension plan members at the founding universities consent to convert their existing plans to UPP, through a transfer of assets and liabilities. The Joint Sponsors adopt UPP’s Funding Policy, including an innovative risksharing arrangement for past service and future service liabilities.
2020
January — UPP’s formal governance structure comes into effect through Joint Sponsor and Trust Agreements. Six Employer Sponsors and six Employee Sponsors (from representative unions and faculty associations) are appointed and select UPP’s inaugural 14-member Board of Trustees as UPP’s legal administrator.
July — Barbara Zvan is appointed as UPP’s inaugural President and CEO.
November — UPP receives formal solvency funding exemption as a JSPP.
July — Barbara Zvan is appointed as UPP’s inaugural President and CEO.
November — UPP receives formal solvency funding exemption as a JSPP.
July 1st, 2021
UPP becomes the official pension provider for the founding participants and their 37,000+ members.
January 1st, 2022
Trent University joins as UPP’s fourth
member university, along with the
staff of the University of Guelph
and University of Toronto faculty
associations and eligible UPP
employees.
Our 2022–2025 organizational strategy serves as a critical beacon in
our build, defined through six key imperatives:
STRATEGIC PILLARS
Serve our members
Deliver proactive, digitally enabled services that exceed member expectations
Invest for the future
Design a dynamic, purpose-driven investment program with pension security at the core
Realize sector growth
Build trust and transparency with the diverse university community and welcome new Plan participants
END-TO-END FOUNDATIONS
Build for Resilience
Future-proof operations and technology while responsibly managing costs
Lean Into ESG1
Foster a financially, socially, and environmentally sustainable future for members in all we do
Foster our culture
Build an intentional, thriving culture underpinned by our purpose-driven people
1 Environmental, social and governance factors
02
Our commitment to equity, diversity, inclusion, and reconciliation
Our people are the heart of our organization
Together, we are creating a purpose-driven and inclusive workplace with a culture of teamwork, collaboration, and respect — for one another and the world around us. Equity, Diversity, Inclusion, and Reconciliation (EDIR) is the umbrella term for the programs, policies, strategies, and practices underpinning our mission to create and sustain a diverse, equitable, and inclusive environment – no matter anyone’s ethnicity; sexual orientation; gender identity; physical, cognitive, or mental ability; religion; age; marital status; socioeconomic status; national origin; or other identities.
EDIR is not just a core value at UPP; it’s a business imperative. Diverse teams, perspectives, and lived experiences contribute to better decisions and a better workplace. Our EDIR program and three-year roadmap are the blueprints for our inclusive, respectful working environment and our way of honouring the Truth and Reconciliation Commission’s Call to Action #92
Learn more about our EDIR strategic objectives in our annual report
"We believe in the power of bringing our whole selves to work and will work tirelessly to create a diverse, inclusive, and equitable organization where all voices are heard and all employees are embraced with dignity and respect.”
03
Serving our members
37,084
Members
19,818
Active
11,935
Retired
5,331
Deferred
A member-driven approach
UPP was founded with a promise to preserve a comfortable and secure retirement income for our members, deliver member service excellence, and give our members a voice in their plan.
We are at a pivotal stage — building our long-term foundations, defining our member experience and engagement approach, and solidifying our investment roadmap. With an exciting road of opportunity ahead at UPP, our members’ direct perspectives, expectations, and priorities are an essential compass.
Throughout 2021 and early 2022, we engaged with members to understand their general sentiment, values, and priorities regarding the core aspects of their pension journey: member experience and the investment of their assets.
"My mother worked at an Ontario university
for over 30 years. I remember how proud she was to contribute to her pension, knowing she could retire with peace of mind. That stuck with me, and
when given a chance to work for an organization that could help others like my mom, I jumped at it. I’m committed to serving members with excellence and care, and that begins by understanding what that means to our members."
04
Invest for the future
6-month investment highlights
(At December 31, 2021)
$11.8B
Net assets
5.7%
Net return
$0.6B
Net investment income
UPP investment beliefs
We believe that long-term sustainable growth depends on action grounded in strong, clear values. At UPP, all investment strategies and decisions are guided by the following Investment Beliefs, as set by Management and the Board in early 2022.
UPP invests with a purpose: to fulfill the pension promise to members, now and in the future.
As a long-term investor, UPP has a responsibility to promote the health of the capital markets and the financial, social, and environmental systems on which capital markets rely.
Creating value and managing risk involve exercising UPP’s voice to influence outcomes related to material issues through active ownership, policy advocacy, and collaboration with other investors and stakeholders — all of which must be approached with the same intention and rigour as selecting investments.
All aspects of investing should be forward-looking and intentional. Successful investing requires rigorous research and analysis, alignment with UPP’s capabilities, and focused innovation.
Culture is an essential investment input. How we invest should reflect UPP’s culture of collaboration and forward vision.
UPP embraces partnership as a foundation for enhanced performance and impact.
Costs are an asset that should be treated as judiciously as any other plan asset. The goal is neither to reduce costs to the lowest possible level, nor squander a plan asset. Rather, the goal is to employ costs wisely in delivering a secure pension promise.
Transparency engenders trust. Our investment of members’ pension earnings has bearing on their retirement security; they have a right to know how we approach and perform that responsibility.
As a sector plan, our growth over time allows us to establish the
structures and capabilities to expertly manage members’ assets in
line with our liabilities while contributing to healthy capital markets. Each
is an essential aspect to delivering a sustainable pension promise. Through
our choices today, we prepare for tomorrow’s scale, building invaluable
intellectual capital along the way.
05
Leading with sustainability
Promoting the health of financial, social, and environmental systems
As a long-term investor, UPP has a responsibility to promote the health of the capital markets and the financial, social, and environmental systems on which capital markets rely. This value is embedded in our core investment beliefs and approach, as a means for fulfilling our pension promise well into the future.
Creating value and managing risk
End-to-end ESG integration
Our ESG focus extends to the highest level at UPP and is embedded throughout the organization. Every investment professional is responsible for integrating ESG considerations into their investment decisions and communicating UPP’s policies and expectations to external investment managers. We do this to deliver sustainable long-term value and fulfil our pension promise to generations of members.
Our suite of investment policies provides a framework for how we will consistently and comprehensively incorporate ESG considerations in our investment management and stewardship activities. These policies will continually evolve as we grow and advance our investment program, driven by our steadfast commitment to the pension promise.
Exercising our influence and partnering for impact
By investing in companies and establishing relationships with external managers, we gain a seat on the table that we can use to promote fair, efficient, and sustainable financial markets. We engage in proactive dialogue with the companies we invest in and our external investment managers to make our expectations clear on ESG issues such as climate change, reconciliation, and human rights.
UPP participates in broader collaborative initiatives to:
- Leverage the power of scale to amplify our impact
- Enhance access to global tools, data, and best practices
- Help deliver a strong, unified voice to companies about material matters
“We know that companies are more sustainably profitable, and more stable, when they prepare for and act on the issues transforming our world. We will not only invest in those organizations; we will be one of those organizations. That work begins by understanding the ESG profile of our consolidated portfolio and investment managers today, and how we can best achieve positive change.”
UPP's climate action plan
Part of being a responsible investor is advancing climate readiness across our portfolio. This is critical not only to the success of Canadian companies and communities as we move toward a net zero world, but also the long-term strength of our Fund. Recognizing climate change as a defining challenge of our time, a transparent and deliberate climate action plan is and will be a priority component of our developing investment and risk management strategy.
UPP will transition its investment portfolio to
Net-zero
GHG emissions by
2040
or sooner
with interim emissions reduction targets:
16.5% by 2025
60% by 2030
Our inaugural carbon footprint also forms the baseline for our interim emission reduction targets, as shown below. We will calculate and report our carbon footprint annually to demonstrate progress toward our long-term objective of net-zero portfolio GHG emissions by 2040 and our interim 2025 and 2030 emission reduction objectives.
UPP’s 2021 carbon footprint and targets
Metric tonnes CO2-eq/$M invested
While setting a 2040 net-zero target may seem ambitious for a new fund, we see this commitment as central to delivering long-term value and an essential beacon for our evolving investment strategy.
Our Climate Action Plan outlines the steps and tools we will take to achieve our target.
Tell us what you think about this summary.
Learn more
More details on who we are, plan funding, and investment performance
Part of being a responsible investor is advancing climate readiness across our portfolio. UPP will transition its investment portfolio to Net-zero GHG emissions by 2040 or sooner. Our Climate Action Plan outlines the steps and tools we will take to achieve our target.
As a jointly sponsored pension plan, the perspectives and ideas of our plan members are a crucial input into shaping UPP’s path forward. Read the results of our engagement activities to date, featuring survey results, key themes and important takeaways.
- © 2024 University Pension Plan