CAAT Plan remains resilient through a tumultuous year
Thanks to its prudent, long-term approach to managing funding, CAAT remains in a strong position at 124% funded and has moved into Level 5 of the Funding Policy, as at January 1, 2023. This means that conditional benefits such as inflation protection increases have been granted through to 2026. And the Plan’s Governors have also approved valuable changes to both DBprime and DBplus, starting January 1, 2025.
Read about the Plan changes
Defined benefit pension plans like CAAT are always looking down the road – 20, 30, 40 years and more – to ensure that members’ pensions are secure. CAAT uses different tools to guide decision-making. The Funding Policy shows where the Plan intends to go and informs what it will do when it gets there. Regular valuations act as signposts on the way – showing how the Plan is progressing on its journey.
CAAT’s Funding Policy was first introduced in 2006 as a decision-making tool that Plan Governors use to meet the long-term sustainability goals of the Plan. It shapes their decisions as they focus on keeping pensions secure for members and employers now, and in the future.
A valuation compares the present value of the future pensions promised to members and the assets that will be available to pay them. The valuation makes assumptions about the pensions members will earn, the contributions they will make, and the investment returns the Plan will achieve.
The Plan’s Governors think carefully about every decision they make to keep the Plan – and your pension – secure for the long term. The valuations and the Funding Policy are important tools they have when making decisions in the best interest of all Plan members.
This year, CAAT’s valuation, which will be filed with the pension regulators, shows CAAT funding is strong, and your pension is secure. It shows that CAAT is on the right track to deliver benefit security to members and employers.
Over the years, CAAT has been building reserves to keep the Plan safe in an uncertain world. With great investment performance and the success of growing Plan membership, a portion of those reserves have been allocated to fund the decrease in DBprime contribution rates and the increase in DBplus benefits that start in 2025.
Read the 2022 Valuation Report (PDF)
See how the pension you’re earning will get even better.
A foundation of equity and benefit security that guides decision-making.
Read the 2020 Valuation Report (PDF)