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The Colleges of Applied Arts and Technology (CAAT) Pension Plan is reporting that its net assets topped $10 billion at the end of 2017, with the plan earning 15.8 per cent net of investment management fees.
As of Dec. 31, 2017, the plan’s assets totalled $10.8 billion, up from $9.4 billion the previous year. The 2017 CAAT Pension Plan Annual Report is available on the CAAT Plan website.
The rate of return exceeded CAAT’s policy benchmark by 3.5 per cent, bringing the five-year annualized net rate of return to 11.4 per cent, and adding $1.1 billion in value above the policy benchmark during those five years.
Consistently strong investment returns contributed significantly to CAAT’s 118 per cent funded status, on a going-concern basis, plus a $2.3 billion funding reserve shown in the actuarial valuation as of Jan. 1, 2018, the plan states in a release. It’s the eighth consecutive year of building reserves and strengthening the funded position, which demonstrates the sustainability of “this Modern defined benefit (DB) pension plan, and the Plan’s focus on benefit security,” states the release.
“Our primary focus is to secure the meaningful benefits our members and employers rely on. This drives everything we do,” Derek W. Dobson, CEO of the CAAT Pension Plan, is quoted saying.
CAAT has 46,000 members and 41 employers, with 24 colleges and 17 other participating employers. Last year employer/employee contributions totalled $444 million, with net income from investments coming in at $1.4 billion. Pension benefits totalling $457 million were paid to members in 2017.
“We’re open and ready for growth in membership where it is mutually beneficial. This includes workplaces that currently offer single-employer defined benefit pension plans, defined contribution plans, and other workplace retirement savings arrangements in the private and not-for-profit sectors,” Dobson is quoted saying.
For an ARIA interview with Dobson, click here.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapension

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