The Colleges of Applied Arts and Technology pension plan increased its average 10-year net return to 11 per cent and outperformed its benchmark, according to the plan’s preliminary 2021 valuation results.
The results also found the pension plan is 124 per cent funded on a going-concern basis, with $4.4 billion in funding reserves, as of Jan. 1, 2022. The plan closed the 2021 fiscal year with a market value of assets totaling $18 billion and its long-term discount rate has been held at 4.95 per cent.
“We have secured valuable yet affordable pensions for participating workplaces and peace of mind for members when it mattered most,” said Derek Dobson, chief executive officer and plan manager at the CAAT pension plan, in a press release. “We have $1.24 set aside for the value of every dollar of pension benefit promised today and in the future, equating to $4.4 billion in funding reserves. With CAAT’s latest outperformance and additional $2 billion in asset volatility reserves, we are beginning the 2022 year stronger than ever.”
The CAAT pension plan’s final 2021 investment results will be released with its annual report in April.