Can Pension Organizations Innovate? The Extraordinary Case of CAAT Pension Plan

“In an ageing world, the design and management of a country’s retirement income system is becoming an increasingly important strategic determinant of its future social and economic performance. The Mercer CFA Institute Global Pension Index ranks Canada’s system #11 out of 44 countries. What will it take for Canada to improve its pension system quality ranking?”

KPA Advisory Services Pension Policy Paper, 2023

 “Our Plan provides the lifetime income Canadians want to feel financially secure in the future, with stable and predictable costs that employers need to minimize risk. Workplaces can offer a pension solution that blends the best of defined benefit, defined contribution, and RRSP plans. The unique flexibility and superior performance of CAAT’s Penson Plan are big drivers behind its growth from coast to coast.”

Press release with CAAT Pension Plan’s 2024 Annual Report

The 2023 KPA Pension Policy Paper

The 2023 Paper cited above was titled “Making Canada One Of The World’s Top Pensions Countries: What It Will Take”. It laid out the great contradiction in the design and management of Canada’s retirement income system. On the one hand, on the national level, Canada has a functional Old Age Security/Guaranteed Income Supplement (OAS/GIS) system, and sustainable, well-managed CPP/QPP pension plans. It also has a group of globally-admired workplace pension plans for its federal, provincial, and municipal public sector workers. However, private sector workplace pension plan design and coverage are limited, especially due to a lack of DB plans that provide lifetime income and inflation protection. Fewer than 20% of the private sector workforce have such plans, and the proportion is declining. This leaves millions of private sector workers to look after their own retirement finances beyond OAS/GIS and CPP/QPP membership.