TORONTO, April 11, 2023 — CAAT Pension Plan (“the Plan”) announced positive future changes to both its modern defined benefit (DB) pension plan designs, DBprime and DBplus, stemming from its healthy funding and long-term investment performance. In its latest valuation report, the Plan reaffirmed a strong funded position of 124% as of January 1, 2023, on a going-concern basis.
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 build their pension at a faster pace, while contribution rates remain the same.
With both plan designs, CAAT continues to provide participating employers with a desirable DB pension plan that attracts and retains talent, ultimately helping them win the “Marathon for Talent” in Canada’s highly competitive workforce today.
“Prudent funding management, superior long-term investment performance, and making the Plan accessible across Canada have all contributed to the Plan’s strong funded status, and enabled valuable improvements that benefit both members and employers,” says Derek W. Dobson, CEO and Plan Manager, CAAT Pension Plan. “Members and employers know that they benefit when CAAT performs well. To be able to grant these improvements really reflects the strength of the modern jointly sponsored DB model.”
The Plan also announced that it will grant conditional inflation protection increases through to 2026—maintaining a perfect record of granting these enhancements since they were first introduced in 2007.
CAAT’s team of pension experts remains focused on maintaining long-term benefit security and upholding CAAT’s status as one of Canada’s most sustainable and well-funded pension plans.
The Plan closed the 2022 fiscal year with assets of $18.2 billion. The Plan’s 2022 investment results will be released with its annual report on April 19, 2023.
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 290 participating employers in 15 industries including the for-profit, nonprofit, and broader public sectors. It currently has more than 82,900 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, 2023, 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