CAAT Pension Plan reports strong financial performance in 2024

Strong investment returns lead to growth in total assets. Healthy funding reserves provide peace of mind for Plan members and employers

TORONTO, April 22, 2025 /CNW/ - CAAT Pension Plan ("the Plan") released its 2024 Annual Report today. The Plan's investment portfolio recorded a 10-year annualized net rate of return of 9.6% as of December 31, 2024. The Plan outperformed its policy benchmark by 1.5% per year over this 10-year period. This strong performance was supported by an annual net rate of return of 15.2% in 2024. 

At year end, the Plan had $23.3 billion in total assets under management, up from $20.1 billion in 2023. Funding reserves, which can serve as a cushion against market and demographic volatility, were $6.1 billion as of January 1, 2025. As previously reported, the Plan has set aside $1.24 for every dollar promised in pensions, or a funding level of 124 percent on a going-concern basis. With the Plan's continued financial strength, CAAT committed to pay its conditional inflation protection enhancements to 2028; a promise it has maintained since the policy was introduced in 2007. 

Secure, even in uncertain times

"Employees want a strong, sustainable pension plan that delivers the unparalleled value of predictable lifetime retirement income" says Derek Dobson, CEO and Plan Manager, CAAT Pension Plan. "Sound investment management and funding decisions helped build reserves to allow the Plan to continue to grant valuable benefit enhancements even in times of economic uncertainty. This sense of strength and stability improves employee wellbeing long before retirement, which is why demand for high-performing workplace pensions continues to grow." 

The Plan's assets are invested in a broadly diversified portfolio, including public and private equities, nominal and inflation-linked bonds, real assets and commodities.

"All asset classes in the Plan's portfolio contributed positively to performance during 2024", says Asif Haque, Chief Investment Officer, CAAT Pension Plan. "While we are gratified by the strong results for the year, we are especially pleased that long-term investment performance has contributed to furthering the health of the Plan."

Workplace pensions can build a more resilient domestic economy

Leaders in Canada's public, private and not-for-profit sectors are looking to build a more durable domestic economy. Providing Canadians with greater access to workplace pension plans can contribute to this goal. Plans that provide a predictable stream of retirement income for life can boost productivity, support local businesses and contribute to the country's economic growth and prosperity. In 2024, for instance, CAAT paid out $724 million to retirees or their beneficiaries, improving financial security for members and supporting local economies across Canada. It also allocated more than 25% of its investment holdings in Canadian equities, bonds, real estate and infrastructure.  

In providing greater access to workplace pensions, the Plan also achieved an important milestone in 2024. Membership surpassed 100,000 employees in Canada and has more than doubled its size since the Plan introduced its DBplus design in 2018, opening its workplace pension solution to the private, non-profit and broader public sectors. The number of employer sponsors has expanded from approximately 50 to over 700 during the same time.

Other highlights from the 2024 Annual Report include:

• Ranked #1 highest performing Canadian pension plan in the BNY Mellon Canadian Master Trust Universe, based on 10-year investment returns at the end of 2024 for plans with a market value above $1 billion.
• Introduced the GROWTHplus Investment Account, a voluntary, tax-sheltered savings option available to Plan members that allows any additional savings to benefit from the CAAT net rate of return.
• Nine in 10 members reported trust in the CAAT Plan and confidence that their pension benefits are secure.
• Recognized as a Top Employer and Best Place to Work by Benefits and Pensions Monitor.

About CAAT:

Established in 1967, the CAAT Pension Plan is an independent, jointly governed plan that offers highly desirable modern defined benefit pensions. Originally created to support the Ontario college system, the CAAT Plan now proudly serves more than 700 participating employers in 20 industries, including the for-profit, non-profit, and broader public sectors. It currently has more than 110,000 members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. On January 1, 2025, the Plan was 124% funded on a going-concern basis.

SOURCE CAAT Pension Plan

Please contact Andrew Seymour, [email protected]