Monday, April 12, 2010

Ontario Teachers on a rip snorting buying spree

Using the taxpayers cash they have accumulated, Ontario Teachers Pension has been on a buying spree! It has been easy to pick off private sector companies suffering from the Great Recession. Pension plans have a natural advantage too, because they pay no taxes.

We should expect a lot more of these deals to come this year! 

Last year Ontario taxpayers kicked $1.4 Billion into the plan. McGuinty committed to another $500 Million top-up to pensions in this year's budget.  The reason for this generosity with your money is that the government wants to help "bailout" the $17 Billion shortfall taxpayers have in this pension plan. 

All this new money adds to the pool of money teachers and taxpayers have funded into the plan. Last year the plan was worth $96 Billion and down from a high of $110 Billion just a few years ago. This has been accumulated for 286,000 teachers and retirees. Note the CPP plan has assets of about $122 Billion for about 18 million working Canadians. 

There is no pension crisis for them!

Here are the listed transactions since the start of this year.

Teachers buys AIG's Canada mortgage insurance unit 
Teachers buys U.S. aluminum container maker 
Ontario Teachers’ Pension Plan buys British national lottery operator 
Munchkin says Ontario Teachers' Pension Plan buys stake 

Add this to the other assets of Teachers.  
Global Terminals - Port Terminals of Vancouver, New York and New Jersey   
Birmingham International Airport   
Teacher controlling interest in Esval S.A, Chile's water supply    
Samsonite Corporation one of the world’s largest designers, manufacturers, distributors and marketers of luggage 
New York Container Terminal on Staten Island 
Yellow Pages  
CTVglobemedia Inc  

Too many others to list  

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