CAAT Pension Plan’s benefits remain very secure

Posted for Everyone, March 10, 2020

Plan funded status sits at 118% with funding reserves of $2.9 billion

Toronto, March 10, 2020 – The CAAT Pension Plan stands 118% funded on a going-concern basis, with $2.9 billion in funding reserves, based on its latest actuarial valuation as of January 1, 2020.

Top-decile investment returns over the last 10 years[1] have been a significant contributor to the growth in CAAT’s funding reserves. CAAT’s Growing Plan Membership strategy – which saw a significant increase in the number of employers and members in the past year – contributed $0.4 billion to Plan reserves in 2019.

In addition to the funding reserves, the Plan has additional asset smoothing reserves of $0.8 billion to manage future investment market volatility.

Despite long-term investment returns of 10%, CAAT lowered its actuarial valuation discount rate to 5.15%, consistent with its focus on benefit security and sustainability. CAAT maintains a healthy funding reserve and uses realistic valuation assumptions to ensure the pension promise remains strong.

The Plan is stronger and members' pensions are more secure than anytime during the past decade. Conditional benefit enhancements have been extended to at least 2023 based on the strong funded position and in accordance with the Plan’s Funding Policy.

The CAAT Plan’s 2019 investment results will be released with its annual report by May 1. The CAAT Pension Plan closed out 2019 with assets in excess of $13 billion.

“We create value by providing simple, valuable, and secure lifetime pensions to Canadian workplaces. Our unwavering focus on improving benefit security makes CAAT one of the most sustainable pension plans in Canada. We are beginning a new decade in a very strong position. The Plan has a $2.9 billion funding reserve built steadily over the last decade.”
Derek W. Dobson, CEO and Plan Manager, CAAT Pension Plan

For more information:
Erin Whitton
Senior Communications Specialist, Growth & Public Affairs
CAAT Pension Plan
Tel: 647.837.3205

[1] The CAAT Plan’s 10-year return is ranked #1 of the 39 funds with market value above $1 billion in the BNY Mellon Canadian Master Trust Universe.