CAAT Pension Plan Board Chair Removed Amid Governance Turmoil

The governance of the CAAT Pension Plan is under scrutiny following the removal of its board chair, Don Smith. He was removed by the Ontario Public Service Employees Union (OPSEU), which appointed him, amid ongoing investigations into alleged governance-related issues.

Details of the Governance Crisis at CAAT Pension Plan

The CAAT Pension Plan, a multiemployer fund serving Ontario’s colleges, involves more than 800 public and private sector employers and has approximately 125,000 members. Following Smith’s suspension, OPSEU acted decisively to revoke his appointment from the sponsors’ committee, which consists of eight members representing plan employers and members.

Investigations and Concerns

Multiple investigations are currently underway due to concerns raised by senior executives about two critical issues:

• A $1.6 million vacation payout to CAAT’s CEO, Derek Dobson.
• A personal relationship between Dobson and a CAAT employee that has lasted over a year.

These revelations have exacerbated the governance crisis, especially after three top executives abruptly left their positions in January. Additionally, Kareen Stangherlin, the vice-chair of CAAT’s board, is facing scrutiny as investigations look into her actions. She was appointed by the College Employer Council (CEC).

Responses and Future Actions

OPSEU has urged the CEC to investigate Stangherlin’s conduct. The union’s own investigation indicates possible violations of the pension plan’s policies by both the chair and vice-chair.

As investigations proceed, the CEO of CEC, Graham Lloyd, acknowledged that an external governance expert has been engaged to assess the situation. A governance review initiated by CAAT is anticipated to conclude soon, shedding more light on this unfolding crisis.

Meanwhile, a CAAT spokesperson confirmed that a new chair for the board will be appointed later this month. The provincial pensions regulator, the Financial Services Regulatory Authority of Ontario, is also examining alleged governance failures within the CAAT Pension Plan.