The Colleges of Applied Arts and Technology pension plan’s funding status dipped slightly in 2019, to 118 per cent on a going-concern basis from 120 per cent in 2018.
In its latest actuarial valuation report, the CAAT attributed the solid status to excellent investment returns over the past 10 years, as well as its membership growth strategy, which saw a number of employers join the plan, contributing $0.4 billion to plan reserves in 2019. The plan also noted it holds an additional $0.8 billion in reserves to manage future volatility in investment markets.
In a bid to focus on benefit security and sustainability, the CAAT lowered its actuarial valuation discount rate to 5.15 per cent from 5.5 per cent rate in 2019.
“We create value by providing simple, valuable and secure lifetime pensions to Canadian workplaces,” said Derek Dobson, chief executive officer and plan manager of the CAAT, in a press release. “Our unwavering focus on improving benefit security makes CAAT one of the most sustainable pension plans in Canada. We are beginning a new decade in a very strong position. The plan has a $2.9 billion funding reserve, built steadily over the last decade.”