on a going-concern basis
9.9% 10-year net return
$10.8 billion in assets
$2.6 billion in reserves
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The CAAT Pension Plan stands 120% funded on a going-concern basis, with a funding reserve of $2.6 billion, based on its latest actuarial valuation as at January 1, 2019.
This is an improvement over last year’s valuation that showed the Plan 118% funded with a funding reserve of $2.3 billion. The valuation has been filed with the regulator and the Plan will not be required to file again before 2022.
Each funding valuation includes a review of the economic and demographic assumptions used, to ensure they continue to be realistic and appropriate for the Plan’s risk tolerance. As part of this review, the Plan’s discount rate was lowered to 5.5% from 5.6%. The discount rate reflects the asset mix, expected long-term market returns on the investment portfolio, and the Plan’s risk tolerance.
Based on the January 1, 2019 funding valuation the Plan remains at Level 4 of the Funding Policy.
Based on the Plan’s Funding Policy, the Plan governors determined that allocating additional reserves to further strengthen benefit security is the most prudent option at this time. Funding reserves maintain the Plan’s resilience and cushion the Plan against future economic or demographic shocks.
The valuation assumes that members retiring today can expect to live on average to age 89.
Read about the Plan’s Funding Policy.