The Ontario Public Service Employees Union (OPSEU) is demanding an investigation into the conduct of the CAAT pension plan board’s vice-chair, Kareen Stangherlin, amid a governance crisis at the plan.
On Wednesday evening, OPSEU published an online statement regarding its recent decision to suspend CAAT board chair Don Smith, in light of the departure of three senior executives from CAAT announced last week.
The executives’ resignations follow the board’s decision to approve a $1.6-million vacation in-lieu payout to CAAT’s CEO Derek Dobson, as first reported by the Globe and Mail.
CAAT manages the pensions of more than 120,000 public- and private-sector workers across Canada, including Toronto Star employees. In Wednesday’s statement, OPSEU called for action by the College Employer Council (CEC), which as the bargaining agent for Ontario’s publicly funded colleges also appoints trustees to the CAAT board.
Stangherlin is a CEC nominee. OPSEU said it wanted the CEC to probe her actions, adding that the chair and vice-chair “may have acted outside the policies and procedures of the plan.”
A source at OPSEU confirmed those “policies and procedures” are related to the CEO’s compensation. The source is not authorized to speak publicly on the matter.
OPSEU appoints five trustees to the CAAT board; Smith was one of them. The remaining trustees are selected by the other plan sponsors: the CEC and the Ontario College Administrative Staff Association (OCASA).
“Trustees who are appointed have a fiduciary duty — a responsibility first and foremost to make decisions in the best interest of the plan, and plan members, including retirees,” the OPSEU statement said.
The union emphasized that it has no direct influence on the decision-making of trustees.
“OPSEU is seeking accountability and is taking action that is within our scope,” the statement continued. “We are calling on the CEC to open an investigation into the actions of their appointed trustee as well.”
Graham Lloyd, CEO of the CEC, told the Star in an interview that “we are aware of allegations of issues regarding governance, and we are fully supportive of a governance review.”
The council had only just been made aware of OPSEU’s request, he said.
Stangherlin did not immediately respond to the Star’s request for comment. CAAT spokesperson Stephen Hewitt declined to comment.
Originally created to support Ontario colleges, CAAT now serves 800 participating employers with $23 billion in assets. The plan is well-funded, holding $1.24 for every dollar in promised benefits.
In the unlikely event of a deficit, all pensions would continue to be paid in full, as is required by law.
