Plan history at a glance

Submitted by diane on Tue, 08/24/2010 - 12:54

The Colleges of Applied Arts and Technology (CAAT) Pension Plan was established on June 1, 1967.

Early years

In 1967, the Boards of Governors of the 18 Colleges of Applied Arts and Technology that were in operation at that time entered into an agreement with the Ontario Municipal Employees' Retirement System (OMERS) Board, authorizing it to act as Trustee to the Plan. In the following years, the CAAT Plan was represented by an advisory committee that provided comments on the investment and administration of the Plan. By the 1990s, CAAT Plan representatives were looking for more control over decisions about the direction of the Plan and its investments. The CAAT Plan membership featured a unique population, age and service mix , and CAAT Plan amendments had to be approved by the provincial government through an Order-in-Council, often a time-consuming process.

Independence

On December 20, 1994 a new governance arrangement was formally implemented, when the College Boards of Governors, the Ontario Public Service Employees Union (OPSEU) and the 12 members of the first CAAT Plan Board of Trustees signed the Sponsorship and Trust Agreement, effective January 1, 1995. Since then, the Plan has been managed by an independent, jointly-trusteed pension board.

By 1996, the Plan had 15,000 Members and 6,000 retirees, and a fund of about $3 billion.

The current governance structure includes the Sponsors' Committee and the Board of Trustees, as well as a Plan Manager/Chief Executive Officer and an administrative staff. The Plan has three sponsors: Colleges Ontario, acting on behalf of the Boards of Governors of the Colleges, the Ontario College Administrative Staff Association (OCASA) and the Ontario Public Service Employees Union (OPSEU).

At a Glance

A number of changes have been made to the plan over the years. Here are a few:

  • November 1, 1974 - Unreduced early retirement for members who could meet the 90 rule (precursor to the 85 Factor) came into existence; common law relationships were recognized for spousal pensions
  • April 1, 1978 - Buybacks of optional and prior service became available
  • January 1, 1988 - Vesting moved to 2 years of service or Plan membership (it had been 10 years originally, and then 5 years).
  • January 1, 1988 - Membership was extended to Other than Regular Full-Time  
  • July 1, 1991 - Unreduced early retirement was extended to people who could meet the 60/20 rule
  • January 1, 1998 - The 90 Rule was changed to the 85 Rule;
    • Introduction of reduced early retirement for members between age 50-55 with 20 years of service;
    • introduction of optional 75% spousal pension;
    • introduction of a guaranteed minimum of 60 months of payments;
  • November 1, 1998 - The commuted value transfer option is no longer available for members who are 55 or older. Where a commuted value exceeds the CRA maximum amount that can be transferred to a locked-in RRSP, the excess can be paid as a special, time-limited pension.
  • December 8, 1998 - Same sex partners are included in the definition of "spouse"
  • January 1, 2001 - Funding for indexation for pre-1992 pensionable service is extended to 2014 (the date had been extended in three year increments several times, but this was the most substantial expansion in the Plan's history).
  • January 1, 2009 - The maximum age in the Plan at which a member must retire (or must start receiving pension) changes from 69 to 71.
  • January 1, 2010 -The Plan is amended to give retiring or terminating members the option to transfer any excess contributions or small benefit payouts to an RRSP.
  • 2010 - The Plan welcomes new non-College employers
  • Today the CAAT Pension Plan is a proud part of a great pension system.  We continue to provide vital retirement income to thousands of retired members of Ontario’s Colleges.