TORONTO, March 17, 2022 – The CAAT Pension Plan (‘the Plan’) stands 124% funded on a going-concern basis, with $4.4 billion in funding reserves, as of January 1, 2022. Sound investment decisions and prudent funding management contributed to the Plan’s continuous funding improvement for 11 consecutive years.
The Plan increased its average 10-year net return to 11% and outperformed its benchmark, based on preliminary results. Its team of pension administration and investment experts remain focused on maintaining long-term growth and upholding its status as one of Canada’s most sustainable and well-funded pension plans.
“We have secured valuable yet affordable pensions for participating workplaces and peace of mind for members when it mattered most,” says Derek W. Dobson, CEO and Plan Manager at CAAT Pension Plan. “We have $1.24 set aside for the value of every dollar of pension benefit promised today and in the future, equating to $4.4 billion in funding reserves. With CAAT’s latest outperformance and additional $2.0 billion in asset volatility reserves, we are beginning the 2022 year stronger than ever. Our strategic focus on long-term stability and innovative products like DBplus with Contribution Choice positions CAAT to be one of the most attractive pension solutions in Canada available for private sector and not-for-profit organizations.”
The Plan closed the 2021 fiscal year with a market value of assets totaling $18 billion.
CAAT uses realistic assumptions to value its obligations to ensure the pension promise remains strong. As part of this commitment, the Plan’s long-term discount rate has been held at 4.95%. This means that the Plan’s funding health will continue to improve if investment returns exceed 4.95% over the long term.
Conditional benefit enhancements have been extended to at least 2025 based on the strong funded position, including conditional inflation protection enhancements in retirement, in accordance with the Plan’s Funding Policy. CAAT has never missed granting its conditional inflation protection enhancements since they were first introduced in 2007.
The valuation will be filed by the end of March and posted to the Plan website. The Plan’s final 2021 investment results will be released with its annual report on April 19, 2022.
About CAAT Pension Plan:
Established in 1967, the CAAT Pension Plan is an independent, jointly governed plan that offers two highly desirable designs of a defined benefit pension. CAAT's award-winning DBplus plan design is leading an extraordinary pace of growth for the Plan. Originally created to support the Ontario college system, the CAAT Plan now proudly serves more than 200 participating employers in 11 industries including the for-profit, nonprofit, and broader public sectors. It currently has more than 75,000 active and retired members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. At January 1, 2022, the Plan was 124% funded on a going-concern basis.
Learn more at: www.caatpension.ca
For more information:
Media Relations
CAAT Pension Plan
media@caatpension.ca