CAAT resilient through a tumultuous year
Plan funded at 119% with funding reserves of $3.3 billion
Toronto, March 3, 2021—The CAAT Pension Plan stands 119% funded on a going-concern basis, with a funding reserve of $3.3 billion, based on its latest actuarial valuation as at January 1, 2021.
Based on the Plan’s Funding Policy, the Plan governors determined that allocating additional reserves to further strengthen benefit security is the most prudent option at this time. Funding reserves maintain the Plan’s resilience and cushion the Plan against future economic or demographic shocks.
The valuation will be filed with the regulator by the end of March and posted to the Plan’s website. By opting to file this valuation this year, the Plan will not be required to file again before 2024.
Each funding valuation includes a review of the economic and demographic assumptions used to ensure they continue to be realistic and appropriate for the Plan’s risk tolerance. As part of this review, the Plan’s discount rate has been lowered to 4.95% from 5.15%. That means the Plan’s funded health improves when investment returns are greater than 4.95%.
The lower discount rate is consistent with the CAAT Plan’s focus on benefit security and sustainability, and reflects the asset mix and expected long-term market returns on the investment portfolio.
The CAAT Plan’s 2020 investment results will be released with its annual report on April 20, 2021.
“We entered the pandemic fortified with healthy funding reserves to protect the Plan against unexpected economic events. I’m pleased to report we ended 2020 stronger. The Plan’s funding reserves grew to $3.3 billion and our funding status improved to 119% — which means we have set aside $1.19 for every dollar of pension earned by our members.”
For more information:
Derek W. Dobson, CEO and Plan Manager, CAAT Pension Plan
CAAT Pension Plan