Canada’s jointly sponsored pension plans are world-renowned for delivering sustainable DB pensions efficiently.
Joint governance by members and employers keeps the CAAT Pension Plan focused on long-term sustainability for benefit security.
Equity among generations and groups of members is also an important focus, particularly in granting benefit enhancements that are conditional on the Plan’s funded status.
Members and employers have equal say in Plan decisions
Through their representatives on the CAAT Pension Plan governing bodies (the Sponsors’ Committee and the Board of Trustees), members and employers have an equal say in Plan decisions about benefits, contributions, and funding. This joint governance structure is a successful model for keeping defined benefit pension plans relevant and sustainable.
Equal representation and voting extend to five subcommittees of the Board of Trustees that make recommendations to the Board in their particular areas of focus, as well as to any task forces struck to deal with particular issues. The creation of the DBplus plan design was the outcome of a task force that reviewed the suitability of the Plan for meeting the needs of an evolving workforce. The establishment of the Funding Policy, in 2006, was the outcome of a task force that looked at how to manage through economic volatility to strengthen the Plan’s long-term sustainability. Funding policies are now a best practice for pension plans and are a cornerstone of the Modern DB Plan, but in 2006, they were a leading innovation.
Read about the Plan governors
Funding Policy guides Plan governor decisions
Membership in the 30% Club Canada reflects commitment to diversity
The Plan’s CEO & Plan Manager and the Chair and Vice-Chair of the Board of Trustees are members of the 30% Club Canada initiative, a group that advocates for improved.