Centennial College Retirees Association (CCRA)


Members News from CAAT Pension Plan .....

Ontario Government accounting review has no impact on members of the CAAT Plan

You may have heard that the Ontario Government is involved in a public discussion about the appropriate accounting treatment of pension plan surplus on the Ontario Government’s books. An expert panel has been formed to deliver advice and recommendations on the appropriate application of the accounting standards used by the Ontario Government for its balance sheet. The primary focus to date has been those pension plans of which the Ontario Government is a sponsor.
The CAAT Plan is a jointly sponsored pension plan with three sponsors: OPSEU and OCASA, representing members, and the College Employer Council, representing employers. The member and employer groups appoint equal numbers of representatives to the Plan’s governing bodies.
And while the Ontario Government is not a sponsor of the CAAT Pension Plan, its practice for many years has been to reflect 50% of any CAAT Plan surplus (or deficit) on its balance sheet. The expert panel is now considering whether it is appropriate to continue or discontinue this practice.
In February, CAAT Plan staff met with the expert panel where it was made clear that the results of this review would not override or alter the documents that establish the CAAT Plan fund as an independent trust.  Under these documents, the Ontario Government has no access to the CAAT Pension Plan funds, nor is there any legislation that provides the Ontario Government with access to those funds. Rather it is the Plan’s Sponsors’ Committee (with equal member and employer appointments) that determines the use of any funding reserves, in accordance with the Plan’s Funding Policy.
The expert panel is expected to issue a report in April. We will continue to update this information as the process continues.