A shocking development has unfolded in the world of pension plans, with the removal of a key figure from his position as trustee. The CAAT Pension Plan, a multi-employer fund worth a staggering $23 billion, is currently facing a governance crisis that has sparked multiple investigations.
The chair of the CAAT board of trustees, Don Smith, has been removed from his role by the very union that appointed him. This move comes amidst allegations of governance failures and concerns raised by top executives within the plan.
But here's where it gets controversial: Smith was initially suspended by the Ontario Public Service Employees Union (OPSEU), the labor group responsible for appointing several board members. Despite CAAT's statement that Smith would remain as chair until his formal removal, OPSEU representatives on the sponsors' committee took decisive action.
The sponsors' committee, an eight-member group representing the plan's employers and members, formally revoked Smith's appointment. This committee includes Darryl Bedford, who confirmed Smith's removal but declined to provide further comment.
CAAT's spokesperson, Stephen Hewitt, also confirmed that OPSEU's sponsors' committee members had removed Smith as a trustee. The CAAT board plans to appoint a new chair at their upcoming meeting later this month.
The governance crisis at CAAT runs deeper than just one individual. Three of the plan's top executives abruptly resigned in January, further exacerbating the situation. The vice-chair of the board, Kareen Stangherlin, is also facing scrutiny.
Stangherlin was appointed by the College Employer Council (CEC), which represents Ontario's publicly-funded colleges. OPSEU has called for the CEC to investigate Stangherlin's actions as vice-chair, suggesting that both the chair and vice-chair may have acted outside the plan's policies and procedures.
An OPSEU spokesperson, Aidan McNally, stated that the union is awaiting a response from the CEC. Meanwhile, the CEO of the CEC, Graham Lloyd, acknowledged that CAAT has engaged an external governance expert to prepare a report.
Lloyd emphasized the importance of respecting and encouraging this process, suggesting that a clearer picture will emerge once the report is completed.
In December, CAAT appointed a third-party expert to conduct a governance review, which is expected to provide further insights in the coming weeks.
Additionally, the provincial pensions regulator, the Financial Services Regulatory Authority of Ontario, is examining concerns related to CAAT and potential governance failures.
This complex web of investigations and allegations highlights the importance of robust governance practices within pension plans. As the situation unfolds, it raises questions about the balance of power and accountability within these organizations.
What are your thoughts on the governance crisis at CAAT? Do you think the actions taken by OPSEU and the sponsors' committee were justified? Feel free to share your opinions and engage in a thoughtful discussion in the comments below.
