CIBC Mellon earns long term trust from one of Canada's most sustainable and fastest-growing modern defined benefit plans
TORONTO, May 11, 2022 /CNW/ - Today CIBC Mellon announced it has earned a 10-year mandate to provide asset servicing and digital solutions to Colleges of Applied Arts and Technology Pension Plan (CAAT) and its DBplus offering to welcome private and non-profit employers. CIBC Mellon and its global enterprise partners CIBC and BNY Mellon provide an array of investment and pension servicing solutions to CAAT, including custody, accounting, securities lending, foreign exchange processing and settlement, pension benefit payment disbursements, investment information data access, performance measurement, attribution, analytics, and investment compliance monitoring.
CAAT is an independent, jointly governed plan serving more than 75,000 plan members across 200 participating employers. One of Canada's most sustainable, well-funded and fastest-growing pension plans, CAAT is 124% funded on a going-concern basis, with a market value of $18 billion, including $4.4 billion in funding reserves, as of January 1, 2022, with continuous funding improvement for the past 11 consecutive years. CAAT projects significant growth over the next decade as it welcomes more employers to DBplus, its simple, secure and cost-predictable DB plan offering for both private sector and not-for-profit Canadian organizations.
"Our aim is to provide pension solutions that meet the dynamic needs of Canadian workplaces, and provide more Canadians with secure workplace pensions and retirement income for life. Through our award-winning DBplus offering, CAAT is attracting more employers and plans in Canada to join us and provide a sustainable defined benefit pension plan," said Michael Dawson, Chief Financial Officer of CAAT."As we welcome new employers to our plan and provide a guaranteed lifetime income in retirement to more Canadians, we know we can rely on CIBC Mellon's highly scalable infrastructure as we expand our operations and deliver on our commitments to our sponsors and members."
"We are pleased to continue to support CAAT Pension Plan as they deliver on their pension promises to current and future members, and proud to position CAAT for its future growth," said Ash Tahbazian, Chief Client Officer, CIBC Mellon. "Leading Canadian pension plans face an array of rising demands, including complex markets, growing competition for opportunities, requirements to execute at the highest standards, and a need to build advanced data and digital operations to help them achieve their plans' long-term investment and operations objectives – all while delivering a great member experience. We look forward to empowering CAAT Pension Plan for many years to come."
Established in 1967, the CAAT Pension Plan is an independent, jointly governed plan that offers two highly desirable designs of a defined benefit pension. CAAT's award-winning DBplus plan design is leading an extraordinary pace of growth for the Plan. Originally created to support the Ontario college system, the CAAT Plan now proudly serves more than 200 participating employers in 11 industries including the for-profit, nonprofit, and broader public sectors. It currently has more than 75,000 active and retired members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. At January 1, 2022, the Plan was 124% funded on a going-concern basis.
CIBC Mellon is a Canadian company exclusively focused on the investment servicing needs of Canadian institutional investors and international institutional investors into Canada. Founded in 1996, CIBC Mellon is 50-50 jointly owned by The Bank of New York Mellon (BNY Mellon) and Canadian Imperial Bank of Commerce (CIBC). CIBC Mellon's investment servicing solutions for institutions and corporations are provided in close collaboration with our parent companies, and include custody, multicurrency accounting, fund administration, recordkeeping, pension services, exchange-traded fund services, securities lending services, foreign exchange processing and settlement, and treasury services. As at March 31, 2022, CIBC Mellon had more than C$2.5 trillion of assets under administration on behalf of banks, pension funds, investment funds, corporations, governments, insurance companies, foreign insurance trusts, foundations and global financial institutions whose clients invest in Canada. CIBC Mellon is part of the BNY Mellon network, which as at March 31, 2022, had US$45.5 trillion in assets under custody and/or administration. CIBC Mellon is a licensed user of the CIBC trade-mark and certain BNY Mellon trade-marks, is the corporate brand of CIBC Mellon Global Securities Services Company and CIBC Mellon Trust Company, and may be used as a generic term to refer to either or both companies.
For more information – including CIBC Mellon's latest knowledge leadership on issues relevant to institutional investors active in Canada – visit www.cibcmellon.com or follow us on social media @CIBCMellon.
SOURCE CIBC Mellon
