CWIPP hits milestone, widening investment options and reinforcing union-employer pension arrangements
A Canadian multi-employer target benefit plan that began in 1970 has now crossed the $1bn asset mark, highlighting the growing scale of union- and employer-sponsored pension arrangements in the country.
CWIPP – described as Canada’s flexible pension plan for unions, employers and members – reported that its fund has surpassed $1bn in assets.
The announcement, dated December 3, came from Toronto, Ontario.
“Reaching more than $1bn in assets is a significant milestone,” said Shawn Rahbek, managing director, CWIPP. He said the asset growth shows the fund’s size and stability, and that these factors flow through to plan members.
CWIPP attributes its steady asset growth to several factors: rising membership, ongoing employer and member contributions, the addition of buyback assets, and investment performance.
The plan says the increasing size of the fund creates economies of scale that help keep administrative and investment costs low.
It also notes that a larger pool of assets opens access to a wider range of investment opportunities and greater diversification, which it links to long-term performance and sustainability.
With assets now above $1bn, CWIPP states that it operates within the circle of Canada’s multi-employer pension plans.
Governance is a central theme in the plan’s description of the asset milestone.
Gary Goddard, CWIPP board facilitator and chair, said, “This achievement reflects the Plan’s ongoing growth, strength, and sustainability.”
He said the board focuses on governance aimed at keeping members’ pensions secure, and that a larger fund can support efficiency, cost control and wider investment options over the long term.
CWIPP operates as a multi-employer, target benefit pension plan.
Employers that join can set contribution rates and structures in line with what they bargain with their unions.
According to the plan, these negotiated costs are stable and fixed and are protected by pension legislation. Member contributions are allowed but not required.
At retirement, plan members receive their pensions as monthly income for life.
CWIPP presents this as an option for Canadians who want predictable lifetime pension income within a target benefit framework.
