In 2020, COVID-19 created upheaval throughout the world, including in the stock markets – and pension plans that depend on them for growth. Fortunately, when the pandemic hit, the CAAT Pension Plan was in a position of great strength. We’re pleased to say that it stayed strong throughout the year – and grew stronger.
The value of the plan started the year at $13.5 billion. By the end of 2020, it had grown to $15.8 billion. In other words, it grew by 11.1 per cent.
The plan is now funded at a phenomenal 119 per cent. What does that mean? For every dollar of pension promised to members, $1.19 is available.
When the plan was founded in 1967, Ontario public colleges were the only participating employers. Two years ago, the plan launched DBplus, which provides employers and staff with a defined-benefit pension plan. A defined-benefit pension guarantees that members will receive a set amount of money every month for life.
The CAAT Pension Plan’s stellar reputation means DBPlus has received an enthusiastic welcome. What does that mean for you? The more members and employers a plan has, the better it can weather downturns, making your retirement more secure.
This is great news for our members with the CAAT plan. In a year that has seen them pushed to, and beyond, their limits, it’s encouraging to them to know that their very well-deserved retirement is more secure than ever.
The CAAT Pension Plan is jointly sponsored by the College Employer Council, the Ontario College Administrative Staff Association (OCASA) and OPSEU/SEFPO who, together, make the decisions about risk, costs and benefits. As such, we offer our thanks and congratulations to our union’s representatives in the plan, who continue to manage the plan so astutely, and all unions and employers.