Annual return of 11.1% outperforms policy benchmark, brings 10-year annualized net rate of return to 9.9%
119% funded with funding reserves of $3.3 billion
Assets of $15.8 billion
Plan grows to 68,900 members, more than 100 employers
New digital Year in Review
Toronto, April 21, 2021 – Amidst challenging markets in 2020, the Colleges of Applied Arts and Technology (CAAT) Pension Plan earned an 11.1% rate of return net of investment management fees, exceeding its policy benchmark by 0.4%.
The 2020 investment return brings the annualized 10-year net return to 9.9% providing $1.7 billion in cumulative added value compared to the benchmark.
Funding reserves increased to $3.3 billion from $2.9 billion. Reserves are available as a cushion against investment market declines and any unexpected demographic changes that would increase liabilities. This represents 11 consecutive years that the Plan has improved its funded position.
The Plan is 119% funded on a going-concern basis based as at January 1, 2021, an improvement from 118% last year. Being 119% funded means we have set aside $1.19 for every dollar of pension promised to our members.
Plan assets are at $15.8 billion, up from $13.5 billion a year earlier.
“Despite the challenges of 2020, CAAT remains one of the most secure plans in Canada. We began the year with healthy funding reserves and I’m proud to say we ended the year stronger,” says Derek W. Dobson, CEO, CAAT Pension Plan.
The discount rate was lowered to 4.95% from 5.15%, to reflect expected future trends in market returns and the Plan’s long-term focus on benefit security.
CAAT provides secure income in retirement to more than 68,900 members who work at one of the more than 100 employers across Canada. Last year saw steady growth in membership and in the number of employers. The Plan grew by 7,500 members and by 35 employers.
The main reason for growth has been the innovative and award-winning plan design, DBplus, which provides valuable pensions at an affordable fixed cost. It’s making secure defined benefit pensions accessible to more working Canadians across the country.
The CAAT Pension Plan is open to growing membership from the for-profit, nonprofit, and broader public sectors. This includes workplaces currently offering defined benefit pension plans, defined contribution plans, group RRSPs, and those with no current workplace retirement savings plan.
Although DBplus was only made available to Canadian workplaces in 2019, CAAT now has members across Canada from nine industries and has support and participation from 14 unions and member associations. Notable employers include Brink’s Canada, Greater Toronto Airport Authority, Canadian Bar Insurance Association/Lawyers Financial, Sanofi Pasteur, SHARE, Saint John Airport, Torstar, United Way of Greater Toronto, University of Saskatchewan, and Vancouver Foundation.
The 2020 CAAT Year in Review
The engaging new digital format will help communicate the CAAT Plan’s performance to members, employers and stakeholders interested in highlights from 2020. Discover the Year in Review here.
The Annual Report webinar will be held on May 5, beginning at noon Eastern. Register.
For more information:
CAAT Pension Plan