Plan’s strong funding health provides benefit security for growing membership base and participating employers
TORONTO, March 27, 2025 /CNW/ – CAAT Pension Plan (“the Plan”) continued to improve retirement security for a growing number of workers in 2024 by attracting more employers and members to the Plan and the lifetime retirement income it provides. The Plan also added a flexible solution that enables members to grow their tax-sheltered savings and benefit from CAAT’s investment returns as well as extended its conditional inflation protection enhancements.
CAAT’s growth was supported by the Plan’s strong financial health. According to its actuarial valuation as of January 1, 2025, the Plan has set aside $1.24 for every dollar promised in pensions, or a funding level of 124 percent on a going-concern basis. The Plan is resilient and well-positioned to continue to provide valuable enhancements to its members.
The actuarial valuation report can be found here.
Purpose-led growth
Membership grew by 17.5 percent in 2024, enabling more than 111,000 individuals across Canada to benefit from lifetime retirement income, along with inflation protection features, and survivor benefits. CAAT now supports 710 participating employers, up from 370 in 2023. Today, the Plan provides valuable workplace solutions to a diverse range of organizations from early childcare educators in Nova Scotia to car companies and a commercial airline.
“Our Plan provides 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,” says Derek Dobson, CEO and Plan Manager, CAAT Pension Plan. “Workplaces can offer a pension solution that blends the best of defined benefit, defined contribution, and RRSP plans. The unique flexibility and superior performance are big drivers behind CAAT’s growth from coast to coast.”
Solutions-oriented innovations for members and employers
In 2024, CAAT continued to develop practical solutions for the evolving retirement needs of its members and employers. For instance, 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.
“Employers are navigating a complex landscape, balancing the need to stay competitive while ensuring employees have the financial security they deserve,” says Jillian Kennedy, Chief Strategy Officer of the Plan. “At CAAT, we listen closely to these evolving needs and design flexible, high-impact retirement solutions creating real value for both organizations and their people. GROWTHplus is a great example. It provides employees with a way to build additional tax-sheltered savings alongside a secure lifetime pension throughout their working years and even into retirement. By working closely with senior human resource and finance leaders across Canada, we’re helping organizations strengthen their total rewards in a way that is both cost-effective and future-focused.”
Creating more value through enhancements
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 future 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.
The Plan also extended its conditional inflation protection enhancements to 2028, in accordance with the Plan’s Funding Policy. CAAT has granted conditional inflation protection enhancements each year since its introduction in 2007.
Addressing retirement affordability in Canada
Two-thirds of Canadians worry they will not have enough money for retirement. Deloitte estimates that close to 7 out of 10 households nearing retirement (55 to 64 years old) are at risk of not being able to financially sustain their lifestyle in retirement or will need to rely on government programs to replace their pre-retirement income. That represents more than 2 million Canadians.
This crisis in confidence presents risks to the Canadian economy in both the near and longer term. While six out of ten paid workers in Canada do not have access to workplace pension plans, they will be increasingly critical in enabling our aging population to live well in retirement. Recent innovations in defined benefit (DB) plans eliminate the liability risks on employers, while reducing the management time and costs that individual employers take on compared to older plan designs, while still providing members the peace of mind with a predictable stream of retirement income for life. CAAT is available to organizations of any size, in every sector and across the country to improve retirement security for Canadians.
About CAAT:
Established in 1967, the CAAT Pension Plan is an independent, jointly governed plan that offers highly desirable modern defined benefit pensions. Originally created to support the Ontario college system, the CAAT Plan now proudly serves more than 700 participating employers in 20 industries, including the for-profit, non-profit, and broader public sectors. It currently has more than 110,000 members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. On January 1, 2025, the Plan was 124% funded on a going-concern basis.
Learn more at: www.caatpension.ca.
SOURCE CAAT Pension Plan
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