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Joint governance adds value

Through their representatives on the Plan’s governing bodies – the Sponsors’ Committee and the Board of Trustees – members and employers have an equal say in and share the risks of Plan decisions. This joint governance structure is recognized as a model for success in keeping defined benefit pension plans sustainable.

The governors are appointed by the Plan sponsors: the College Employer Council on behalf of the college boards of governors, the Ontario College Administrative Staff Association (OCASA), and the Ontario Public Service Employees Union (OPSEU).

As a member of the Plan, you can be certain that your interests are well-represented, because both members and employers share equally in making the decisions that affect your benefit security.

Subcommittees of the Board

Equal representation and voting extends to these subcommittees of the Board of Trustees that make recommendations to the Board in particular areas of focus:

  • Appeals Subcommittee – hears member appeals of the interpretation of Plan rules.
  • Audit Committee – reviews the effectiveness of the organization in controlling and managing operational risk. It ensures the reliability of financial reporting and reviews the annual financial statements.
  • Finance and Administration Committee – is concerned with Plan design, funding and administration, legislation, litigation, and the appointment and evaluation of actuarial and legal advisors.
  • Governance Committee – assists the Board of Trustees in ensuring effective Board functioning and decision making as well as overseeing management of the CEO & Plan Manager.
  • Investment Committee – develops and recommends the Statement of Investment Policies and Procedures and related policies such as those concerning responsible investing and investments in derivatives.

CAAT Pension Plan documents and Funding Policy

CAAT Pension Plan Text (PDF, Effective June 1, 2018)

2019 Valuation Report (PDF)

2017 Anual Report (PDF)

Funding Policy

The Funding Policy highlights the Plan’s long term focus of protecting promised benefits and minimizing contribution rate volatility, while recognizing the desire to achieve intergenerational equity. To deliver on these longer term goals while managing through short term volatility a blend of stability contributions, conditional benefits, and reserves are used.

Revised effective June 1, 2018

There are six funding levels that help the Plan maintain a long-term focus and achieve its key strategic goals of benefit security, contribution stability and intergenerational and inter-design equity. 

DBprime

If the Plan has a deficit after using all reserves and the 3% stability contributions being paid by active members, Ontario pension law would require stability contributions to be further increased temporarily and/or that benefits members build in future be reduced to eliminate a deficit. Conditional inflation protection would not be paid to retired and deferred members.

DBplus

If the Plan has a deficit after using all reserves and contributions being paid by active members, the Plan would not pay post-retirement conditional inflation protection to retired and deferred members and will not pay pre-retirement benefit increases to active members. The Plan will also temporarily remove any early retirement subsidies. The Plan may consider reductions to future benefits by reducing the lifetime annual pension factor below 8.5%. 

DBprime

With the 3% in stability contributions being paid by active members and the Plan’s funding reserves being fully used, the funding level exceeds provincial funding minimums, meaning the Plan has a small surplus. The Plan will provide the current period of conditional inflation protection increases to retired and deferred members.

DBplus

With the contributions being paid by active members and the Plan’s funding reserves being fully used, the funding level exceeds provincial minimums, meaning the Plan has a small surplus. The Plan will provide the current year of conditional inflation protection increases to retired and deferred members and would restore the annual pension factor to 8.5% for future benefits while considering restoring any prior pension factor reductions in previous years (if any). The subsidized early retirement reduction rate will be set at 5%. Pre-retirement benefit increases for active members will not be made. 

DBprime

Stability contributions of 3% are required from active members. The Plan will provide current period conditional inflation protection increases for retired and deferred member plus make additional increases for past years of conditional inflation rate increases missed (if any). Surplus funds over provincial minimums will also be allocated to funding reserves to withstand up to a 0.5% reduction in the discount rate.

DBplus

The Plan will apply conditional inflation protection increases for retired and deferred members for the current period plus make additional increases for past years of inflation rate increases missed (if any). Pre-retirement benefit increases for active members will be applied. The subsidized early retirement reduction rate will be 5% and the lifetime annual pension factor will be 8.5%. Surplus funds over provincial minimums will also be allocated into funding reserves to withstand up to a 0.5% reduction in the discount rate.

DBprime

Stability contributions of 1%, 2%, or 3% are required from active members. All periods of conditional inflation protection increases for retired and deferred members have been made. Surplus funds over provincial minimums will be allocated into reserves to withstand up to a 1% reduction in the discount rate and build reserves to fund future conditional inflation increases for retired and deferred members.

DBplus

The Plan will pay current period pre-retirement benefit increases to active members and consider providing increases for past years of pre-retirement benefit increases that were missed (if any). The lifetime annual pension factor will be 8.5%. In addition, the Plan will consider early retirement reduction factors of 3%, 4%, or 5%. Post-retirement conditional inflation protection will be applied and surplus funds over provincial minimums will be allocated into reserves to withstand up to a 1% reduction in the discount rate and build reserves to fund future conditional inflation increases.

DBprime

Active members will be contributing stability contributions of 0% or 1%. The Plan has fully funded the reserves required to fund future conditional inflation protection increases and withstand a 1% reduction in the discount rate. Additional funding reserves are being built to withstand up to a 7.5% increase in liabilities as an additional cushion for securing promised benefits. 

DBplus

Pre-retirement benefit increases for active members and post-retirement conditional inflation protection for retired and deferred members will be applied, while the early retirement reduction factor will be 3%.The Plan will consider a lifetime annual pension factor to a rate of 8.5% or 9.5%. The Plan has the reserves required to fund future conditional inflation protection increases and can withstand a 1% reduction in the discount rate. Additional funding reserves are being built to withstand up to a 7.5% increase in liabilities as an additional cushion for securing promised benefits.

DBprime

Full funding reserves have been built. Stability contribution rate is 0%. Conditional inflation protection for retired and deferred members will be paid. The Plan has sufficient surplus to consider any combination of the following changes:

  • Provide ad hoc inflation protection increases on the part of pensions not covered by conditional or guaranteed inflation protection
  • Allocate additional funds into reserves – up to the federal tax limit
  • Reduce contributions below basic contribution levels
  • Improve benefits.

DBplus

Full funding reserves have been built. The lifetime pension factor is at least 9.5%. Conditional inflation protection for retired and deferred members and pre-retirement increases for active members will be made. The Plan has sufficient surplus to consider any combination of the following changes:

  • Provide post-retirement inflation protection increases above 75% of CPI
  • Increase the lifetime annual pension factor beyond 9.5%
  • Improve other benefits on an ad hoc basis.
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The CAAT Plan's member services team are available to answer any questions you may have.