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Ontario taxpayers and the members of Ontario teachers' unions are the
victims of a systemic scam which, though legal, is a scam nontheless. The
beneficiaries of said scam are not guilty of any impropriety or illegality: they
simply take advantage of a status quo which works to their advantage, and to the
disadvantage of teacher union members and of the taxpayers of Ontario.
The best scam is that which can be perpetrated under the cover of legality:
such is the case of a scam being perpetrated at the expense of the members of
Ontario teachers' unions and at the expense of Ontario taxpayers.
Here's how it works.
When a teacher union member stops performing teaching duties to become an
administrator, a teacher union bureaucrat, or a teacher union leader, he/she
continues to make contributions, based on a certain percentage of salary, to the
Ontario Teachers' Pension Plan. When this individual retires, he/she will
collect a pension from the OTPP. The pension, however, will be based on the
average of the individual's best five years' salary. This means that the
individual, who may have contributed to the OTPP as a teacher for much, if not
most, of his/her career, will collect a pension way above what his/her own
contributions would afford: in effect, this means that the collective pension
contributions of teachers will subsidize the individual's inflated pension.
Those Ontario teachers who retire as teacher union members with, say, a $40,000
pension, will subsidize the pensions ($60,000 to $100,000 and over) of teacher
union leaders and administrators. One can only guess as to how many hundreds of
millions of dollars are required to subsidize these inflated, underfunded
pensions, money that comes out of the pockets of those teachers who retire as
members of teacher unions. Unfortunately, the taxpayer of Ontario is also
footing the bill to the tune of hundreds of millions of dollars, as the Ontario
government matches, dollar per dollar, teacher contributions to the OTPP.
But how is this allowed to happen? Teachers are smart, right? They're university
educated, right? Fact is that most teachers don't understand their pension plan,
and are lulled into a false sense of security and trust by the propaganda
emanating from the OTPP Board, at the direction of OTF, and by the tight control
over information and statistical data exerted by the OTPP Board, again at the
direction of OTF.
The propaganda is a constant beating of drums and harping on one point: the OTPP
is the best and richest pension plan and the envy of everyone. The data provided
to Plan members by OTF (through the OTPP) in its yearly pension statement is
misleading: a member's total contributions are not adjusted to reflect
compounded interest, nor is the government's dollar per dollar matching
contribution shown, thus leaving a Plan member with the impression that he/she
is getting a more generous pension than he/she deserves based on his/her
contributions.
At the same time, OTF refuses to extract and provide data to the membership that
would allow each teacher union member to determine what returns, in the form of
a pension, he/she can expect to reap for every dollar contributed to the OTPP,
compared to returns obtained by union officials and administrators: apparently
the OTF leadership does not want teacher union members to know that they are
getting much lower returns on investment than other members of the plan (i. e.
administrators and union officials).
Why are OTF officials not acting in the interest of the teacher union members,
whose interests they have a duty to promote, by encouraging transparency rather
than resisting it?
