Member Webinar. Why growth is good

Transcription

1 Member Webinar Why growth is good

2 2 We welcome your questions To send us your question, use the control panel on the right of your screen: Click Questions If we don t get to your question during the webinar, we ll answer it on our website All participants are muted.

3 Member Webinar Why growth is good

4 4 Your key questions: What is being proposed and why is it a good idea? How would a joint colleges and university pension plan be governed? Where are we in the process and the necessary approvals?

5 5 The proposal Merge CAAT Plan with interested universities voluntary campus-by-campus solution University members accrue pension on a future service basis past service pension transferred and replicated in the Plan on cost-effective basis while still protecting the current CAAT participants

6 6 The proposal (continued ) Single universities exit pension management business to join an established, fully-funded postsecondary sector multi-employer plan Provisions accommodate universities with the consent of their applicable unions and faculty associations

7 7 Upside of growth CAAT is driving part of the solution to the postsecondary sector pension challenges ensures the best possible outcome

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9 9 Growth in membership improves Probability and timing of Funding Level 4 Probability of remaining fully funded in more adverse economic scenarios Probability of paying conditional indexation Contribution stability (lower volatility) Plus, lowers risk and amount of potential contribution increases

10 10 Guiding principles Mergers must be in the best interest of the Plan members Plan will not assume any university s deficit Colleges and members who work at colleges, retain at least 50% of the governance roles, regardless of how many universities join

11 11 Your key questions What is being proposed and why is it a good idea? How would a joint colleges and university pension plan be governed? Where are we in the process and the necessary approvals?

12 12 Current Board of Trustees

13 13 Implementing proposed Board of Trustees

14 14 Proposed Board of Trustees maximum size

15 15 Changes present manageable risk because On the Board of Trustees Members have a fiduciary duty to act in the best interest of the Plan There is an alignment of interest Decisions require majority Implementation will occur over time

16 16 Current Sponsors Committee

17 17 Implementing proposed Sponsors Committee As universities join the Plan and relinquish withdrawal rights: < 20% of the Plan s assets: 2 seats 20-60% of the Plan s assets: 4 seats % of the Plan s assets: 6 seats > 100% of the Plan s assets: 8 seats

18 18 Proposed Sponsors Committee maximum size

19 19 Changes present a manageable risk because On the Sponsors Committee Diverse needs and philosophies have not been an impediment Established culture of finding the right solution for all stakeholders Fundamental decisions are enshrined in the Funding Policy it s a strength of the Plan Implementation will occur over time

20 20 Funding Policy

21 21 Your key questions What is being proposed and why is it a good idea? How would a joint colleges and university pension plan be governed? Where are we in the process and the necessary approvals?

22 22 Assessment of progress Survey and meetings shows growing support for CAAT solution Boards, administration and member groups requesting more details DC Hybrid DB

23 23 New name builds on our reputation

24 24 Approvals required Each sponsor to approve the amendments to the Sponsorship and Trust Agreement Sponsors are:

25 25 Next steps for the growth initiative Changes needed to Ontario legislation allowing transfer of past assets and liabilities Continue to work to agreements with interested universities and member groups Ensure Plan members are kept informed

26 26 Conclusion an alignment of interests We believe the merger of interested university pension plans with the CAAT Plan benefits all stakeholders by creating stable, predictable costs and more secure benefits at a lower risk. The benefits of mergers are significant to all stakeholder groups and outweigh the associated risks and administrative complexities.

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