With a funded status of 118 per cent on a going-concern basis, the CAAT Pension Plan continues to build membership as new employers, including those from the private sector, consider joining the DB plan.
The plan enjoys a funded reserve of $2.3 billion, based on its latest actuarial valuation as of Jan. 1 2018. That’s an improvement from the previous year when the plan announced it was 113 per cent funded, with reserves of $1.6 billion.
New employers include the Youth Service Bureau of Ottawa (YSB), whose members gave 100 per cent support to joining CAAT. If approved by the regulator, the merger will be the second case of a single-employer, defined benefit pension plan merging with jointly sponsored CAAT.
The Royal Ontario Museum pension plan merged with CAAT in 2016, and the plan is continuing discussions with other employers and employee groups about them joining, including those from the private and not-for-profit sectors.
“The CAAT Plan is open and ready for growth in membership where it is beneficial. This includes workplaces with single-employer defined benefit pension plans, defined contribution plans, and those without a pension plan, including those in the private and not-for-profit sectors,” said Derek W. Dobson, CEO and Plan Manager.
“We are in discussions with several organizations and employee groups about them joining the CAAT Plan and are excited to be able to offer our successful model for sustainable defined benefit pensions. Research shows that Canadians want the adequate and predictable retirement income that a well-governed and expertly managed defined benefit plan delivers and they are willing to make meaningful contributions to it. Employers benefit through lower operating costs, stable contribution rates, and lower risk by exiting the pension management business.”
The CAAT Pension Plan was created in 1967, and has a 50/50 cost sharing by members and employers. Decisions about benefits, contributions, and investment risk are also shared equally. It was originally established for the 24 Ontario colleges, but grew to include 17 other employers and is now open to organizations from both the broader public, private, and not-for-profit sectors.

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