The Colleges of Applied Arts and Technology (CAAT) Pension Plan reported a 13.9% net return for the year that ended on December 31, 2013.
The DB plan’s net assets climbed to $7.1 billion, up from $6.3 billion the previous year.
In its valuation filed as of Jan. 1, 2014, the pension plan is 105% funded on a going-concern basis and has a funding reserve of $525 million.
The plan returned 14.5% before investment management fees. Since the 2008 economic meltdown, the CAAT Pension Plan’s investment portfolio has produced an average annual return of 11.7% gross and 11.1% net of investment management fees.
Last year, contributions to the CAAT plan, which are shared equally by employees and employers of the Ontario college system, amounted to $368 million. Income from investments was $860 million. The plan paid $344 million in pension benefits for the year.
The CAAT plan has 22,000 members working in the Ontario college system, which is made up of 24 colleges and seven affiliated non-college employers. It also has 15,000 members who are retired or have a deferred pension.
For every dollar paid in pension, at least 70 cents come from investment income. The remaining 30 cents come from equal member and employer contributions.
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