The Plan saw significant growth in membership and participating employers across Canada in 2023
Toronto, March 18, 2024 – CAAT Pension Plan ("the Plan"), one of Canada's fastest-growing and most sustainable defined benefit (DB) pension plans, is pleased to announce it is reaffirming its strong funded position of 124% as of January 1, 2024, on a going-concern basis. The Plan has $5.2 billion in funding reserves, a year-over-year increase of 10.6%.
CAAT closed the 2023 fiscal year with a market value of assets totalling $20 billion, an increase of 9.9% from 2022. The Plan saw significant growth throughout 2023, with more than 370 participating employers (up 27% from 2022) in 20 different sectors with over 94,000 members (active and retired, up 13%).
"We continue to work hard to ensure we can provide a sustainable and secure pension to our members while we look for opportunities to expand retirement income security to more Canadians," said Derek W. Dobson, CEO and Plan Manager, CAAT Pension Plan. "Our prudent financial management and robust investment strategy have resulted in a significant increase in the value of our assets and reserve fund. This has allowed us to welcome nearly 80 new participating employers and over 11,000 new members."
A profit-for-members model delivering more value
Sound investment decisions and prudent funding management allowed CAAT to implement changes to its modern DB plan designs, DBprime and DBplus. Effective January 1, 2025, participating members and employers under DBprime will receive a 1% decrease in contribution rates, while DBplus members will receive a 1% increase in the annual pension factor on future ongoing contributions. As a result, DBprime members will build the same valuable pension with lower contribution rates, and DBplus members will grow their pension faster while contribution rates remain the same.
CAAT's successful financial management and investment strategy allows the Plan to continue to offer conditional inflation protection enhancements in retirement in accordance with the Plan's Funding Policy. CAAT has granted conditional inflation protection enhancements since its introduction in 2007.
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 370 participating employers in 20 industries including the for-profit, non-profit, and broader public sectors. It currently has more than 94,000 active and retired members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. On January 1, 2024, 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