CAAT Pension Plan delivers strong 10-year returns, reinforcing long-term stability for members and participating employers

Toronto, April 23, 2026 – The CAAT Pension Plan announced strong investment results in its 2025 Annual Report, underscoring a decade of solid performance and funding health. Over the past 10 years, the Plan has delivered an annualized net return of 9.6% supported by a one-year net return of 8.4% in 2025.

“CAAT’s investment program continues to deliver long-term returns that promote Plan health,” said Kevin Fahey, Acting CEO and Plan Manager and Chief Investment Officer. “Our 2025 results only add to my confidence in the Fund. Our 10-year annualized net return significantly outperformed CAAT’s policy benchmark and discount rate, which reflects the long-term rate of return required to make the Plan sustainable.”

On January 1, 2026, the CAAT Pension Plan’s assets were $25.4 billion with a funding reserve of $6.7 billion, up from $23.3 billion and $6.1 billion, respectively, the previous year. The Plan is 124% funded, meaning CAAT holds $1.24 in assets for every dollar of pension obligations - a strong indicator of benefit security and long-term sustainability for members.

CAAT provides beneficiaries with predictable lifetime income in their retirement. In 2025, the Plan paid more than $760 million to pensioners.

CAAT’s strong funded position directly translates into meaningful benefits for its members and participating employers. For instance, in 2025, the Plan extended its conditional inflation protection for eligible members to 2028, helping preserve the purchasing power of their pensions over time. CAAT has granted this enhancement every year since its introduction in 2007. CAAT also enhanced survivor benefits by increasing the minimum payment guarantee from 60 times to 180 times a member’s first monthly pension amount and by introducing a 100% survivor pension option.

Two previously announced initiatives strengthened the value of Plan participation. CAAT increased the annual pension factor to help DBplus members build retirement income faster without contributing more to the Plan. It also lowered the contribution rate for DBprime members while leaving benefit entitlements unchanged. For employers, these enhancements reinforce a competitive total rewards offering and demonstrate the value Canadians place on workplace pensions as a foundation for financial well-being.

While many of the forces that shaped the economy over the past 50 years including globalization, declining interest rates and low, stable inflation may have run their course, Mr. Fahey says “the resilience of CAAT’s investment program enables the Fund to withstand periods of volatility and adapt to market conditions in the short-term to manage risk and take advantage of opportunities. As such, broader challenges in any given sector or the economy do not impact the ability of the Plan to pay pensions now or in the future.”

Established in 1967, the CAAT Pension Plan is an independent, jointly governed plan that offers highly desirable modern defined benefit pensions. Originally created to support the Ontario college system, the CAAT Plan now proudly serves more than 850 participating employers in 20 industries, including the for-profit, non-profit, and broader public sectors. It currently has more than 125,000 members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. On January 1, 2026, the Plan was 124% funded on a going-concern basis.

Learn more at: www.caatpension.ca.

For more information:
Stephen Hewitt
shewitt@caatpension.ca