Valuation

CAAT continues to be well-positioned to meet its pension promise

According to our actuarial valuation as of January 1, 2025, the Plan is 124% funded on a going-concern basis. In other words, the Plan has set aside $1.24 for every dollar promised in pensions. A valuation evaluates the financial health of a Plan by comparing its assets to liabilities.

As a result, we have extended our conditional inflation protection enhancements to 2028.

Read the 2024 Valuation Report (PDF)

Your pension is well-funded and secure

CAAT’s Governors take the Plan’s funding health into consideration as they make decisions related to long-term benefit security. Our Funding Policy helps shape their decisions. We are currently at Level 5 of our Funding Policy. There are six levels, each with specific guidelines for managing our reserves and conditional benefits. Over the years, we have been building reserves to protect the Plan from economic shocks and to account for inflation. As of January 1, 2025, CAAT has set aside approximately $6 billion for such purposes.

Creating more value for members and employers

Thanks to great investment performance and the success of growing Plan membership, the Plan’s continued financial strength has also allowed CAAT to implement enhancements that benefit members and employers. As previously announced, effective January 1, 2025, participating members and employers under DBprime saw a decrease in contribution rates, while DBplus members saw an increase in the annual pension factor on their contributions. As a result, DBprime members build the same valuable pension with lower contribution rates, and DBplus members grow their pension faster while contribution rates remain the same.

CAAT continues to develop practical solutions for the evolving retirement needs of its members and employers. For instance, in 2024 it introduced the GROWTHplus Investment Account enabling members to grow their tax-sheltered savings, together with the secure lifetime pension they have with CAAT. This optional savings account provides members with access to CAAT’s asset mix, which includes assets not typically available to individual investors. In recognition of GROWTHplus, CAAT was named a finalist in the Excellence and Innovation Awards by the Pensions & Investments WorldPensionSummit.

As always, our aim is to provide the lifetime retirement income Canadians want to feel financially secure in the future, with the stable and predictable costs that employers need to minimize risk and create real value for their organizations and people. As our actuarial valuation highlights, CAAT remains in strong financial shape to do both.

Read past valuation reports