‘This isn't an issue… They have a great structure, and I'm jealous of it in many ways,’ says pension lawyer Randy Bauslaugh
The recent departure of three senior executives from CAAT Pension Plan has prompted questions about governance at one of Canada’s top pension plans. But despite the shakeup, industry experts believe business operations will remain largely uninterrupted.
In fact, according to Randy Bauslaugh, he believes it’ll be “business as usual.”
While acknowledging he has provided advice to CAAT in the past and maintains a close relationship with the CEO, the pre-eminent pensions & benefits lawyer at Bauslaugh Pensions and Benefits Law remains confident in the organization.
"I'm still putting CAAT forward as a recommendation to a lot of my clients," he said, adding there’s a firm distinction between perception and operations.
"From a reputational risk point of view, they need to manage it well," he added..
But when it comes to CAAT's core mission of delivering cost-effective pensions, Bauslaugh doesn't see any consequential impact.
And while plan members may have questions, he believes that CAAT’s chief executive officer, Derek Dobson’s prompt communications with staff should ease concerns. While Dobson may face a heavier workload over the coming months, the broader organization has the depth to carry on, he said.
He believes strategy, risk management and performance are all being handled effectively, and a large staff ensures operations continue uninterrupted.
"My impression is there's no big governance issue here," he said, underscoring a clear line between leadership turnover and service delivery. "It's really a governance issue. It's not a plan operations issue," he said.
When it comes to pension plan governance in Canada, Greg Hurst, consultant at Greg Hurst & Associates believes “it’s done pretty well,” he said, adding that boards of trustees take their responsibilities seriously and benefit from strong professional advice through law firms and consultants with deep industry knowledge. The regulatory framework is robust for traditional setups, whether industry-wide or single employer plans.
The gap, Hurst argues, is that existing regulations weren't built for an entity like CAAT, which spans multiple industries and includes employers ranging from sole proprietors to large organizations.
Hurst views the executive departures as a troubling signal for an organization that has positioned itself at the forefront of defined benefit pension consolidation. His concern extends beyond the immediate personnel changes to broader questions about regulatory gaps.
Traditional multi-employer pension plans served specific industries with natural ties, such as collective bargaining relationships. CAAT operates differently, spanning individuals with personal corporations alongside employers of all sizes across diverse sectors. That model, Hurst suggests, may have outpaced the regulatory framework designed to protect plan members.
"This plan has 921 participating employers, and that's a huge cohort that you have to worry about in terms of governance of the plan, and that's entirely different than what you're going to see elsewhere in the industry," he said, adding he believes the current regulatory regime wasn't designed for the type of organization CAAT has built itself under Dobson’s leadership.
"What we don't have is a consumer-level governance in the regulatory regime that this plan may require," he added.
But Bauslaugh points to succession planning as evidence of organizational strength. He acknowledged his relationship with at least two of the departed executives and noted there were already people in line to fill their roles.
Drawing on his experience as a board chair and director, he sees this as a sign of sound management.
"I always think job one for a CEO is to make sure you've got a succession plan in place for all key positions. And I think that was the case," he said.
Despite the loss of three senior figures, he expects the transition to be smooth.
"As valuable as those people were, there were people in the wings ready to step up," he added.
In a statement to Benefits and Pensions Monitor, CAAT’s director of corporate communications and branding, Stephen Hewitt emphasized the plan's financial resilience despite the leadership changes, underscoring the Plan “continues to rank among the most well-funded and highest-performing pension plans in Canada,” with more than $23 billion in assets and over $6 billion in reserves.
"We currently hold $1.24 for every $1 promised in benefits - one of the strongest indicators of funding health," he said, adding that stress testing reinforces that stability, with more than 99 per cent probability the plan will remain fully funded over the next two decades.
Even in a worst-case scenario, Hewitt noted, legislation requires all pensions to be paid in full.
Hewitt acknowledged an ongoing governance review as evidence of the board's commitment to continuous improvement. In December 2025, the Board of Trustees brought in an independent expert to examine CAAT's governance policies, procedures and practices.
"The review is in advanced stages and is on track to be complete in the coming weeks," he said, noting that if the review recommends changes to strengthen oversight or align with best practices, “the board will consider them.”
While Bauslaugh acknowledges workforce dissatisfaction warrants examination, he underscored the plan has strong leadership, clear metrics and goals, and a governance structure that extends succession planning throughout the organization.
"I think this is a non-issue. They have a great structure, and I'm jealous of it in many ways," he said.
