The Colleges of Applied Arts and Technology’s pension plan is currently 119-per cent funded on a going-concern basis with a funding reserve of $3.3 billion, based on its latest actuarial valuation as of Jan. 1, 2021.
That’s up from 2019, when the pension plan was 118-per cent funded on a going-concern basis with a $2.9 billion funding reserve. “We entered the pandemic fortified with healthy funding reserves to protect the plan against unexpected economic events,” said Derek Dobson, chief executive officer and plan manager of the CAAT pension plan, in a press release. “I’m pleased to report we ended 2020 stronger.”
Read: CAAT sees slight dip in funded status, lowers discount rate
Additional reserves were allocated to further strengthen benefit security, according to the release, which noted the plan’s governors deemed it the most prudent option to maintain resilience and cushion the plan against future economic or demographic shocks.
The plan’s discount rate has been lowered to 4.95 per cent from 5.15 per cent, consistent with the plan’s focus on benefit security and sustainability and reflects the asset mix and expected long-term market returns on the investment portfolio, the release said. The plan’s investment results will be released in April.