The CAAT Pension Plan is parting ways with chief executive officer Derek Dobson, who has agreed to repay a controversial $1.6-million vacation payout he received last year as he ends his nearly 17-year tenure at the helm of the plan.
CAAT said in a statement on Friday that “Mr. Dobson has tendered his resignation and will leave CAAT effective immediately” as part of a settlement agreement that “brings closure to his employment at the plan.”
Mr. Dobson was placed on administrative leave last month after concerns about his leadership and the board’s oversight of his actions caused upheaval in the senior ranks of the $23-billion fund, ultimately leading to a governance crisis that has prompted an overhaul of the plan’s management.
The terms of the settlement agreement were not disclosed.
“Both Mr. Dobson and the CAAT board of trustees acknowledge the importance of moving forward in a manner that supports the long-term health of the plan and the beneficiaries it serves,” CAAT’s statement said.
Mr. Dobson said in an e-mail that he is leaving “with deep pride in what we accomplished together,” and remains “passionate about strengthening retirement income security for Canadians.”
“There is more important life-changing work to be done,” he added.
CAAT is a multiemployer pension plan that expanded rapidly during Mr. Dobson’s tenure, from $4-billion of assets to more than $23-billion today. It serves Ontario’s colleges and more than 800 public- and private-sector employers, with about 125,000 members. The plan is also in a surplus position, with $1.24 for every dollar of expected pension obligations in the future.
