Toronto, Feb 13, 2026, 12:34 (EST)
- CAAT Pension Plan put CEO Derek Dobson on administrative leave and named CIO Kevin Fahey acting CEO
- The board also appointed a new chair and vice-chair as an independent governance review continues
- The review was triggered by concerns tied to a $1.6 million vacation payment to Dobson
CAAT Pension Plan on Friday put chief executive and plan manager Derek Dobson on administrative leave, effective immediately, and named chief investment officer Kevin Fahey as acting CEO. The board said the changes were needed to “restore stakeholder trust” as it reviews governance tied to a $1.6 million vacation payment to Dobson. (Canadian HR Reporter)
CAAT has said the governance questions do not affect the plan’s financial health or its ability to deliver pensions. In a Feb. 5 update, it said the plan was 124% funded, with more than $23 billion in assets and over $6 billion in funding reserves. (CAAT Pension Plan)
CAAT runs a defined benefit pension plan, which pays a set benefit in retirement rather than leaving payouts to rise and fall with markets. When questions surface about executive pay and oversight, sponsors and members tend to want answers fast.
The board also appointed Audrey Wubbenhorst as chair and Janet Greenwood as vice-chair, replacing Don Smith and Kareen Stangherlin. Wubbenhorst said the board saw the moves as “in the best interests of the Plan” and that Fahey was suited to lead through a “period of significant change.” CAAT said the independent review is expected to conclude later in February. (Benefits and Pensions Monitor)
Smith was removed from the chair role last week after he was suspended amid allegations of an improper executive compensation approval, Benefits Canada reported, citing a Toronto Star account. The governance review is examining the vacation payout and decisions around a workplace relationship involving the CEO and an employee, it said. Level Chan, a partner at law firm Stewart McKelvey, said: “The contract would depend — particularly when you’re talking about a CEO — on whether there would be specific terms governing that vacation.” (Benefits Canada.com)
Founded in 1967 for Ontario’s college system, CAAT is jointly governed — employers and employees appoint trustees — and has expanded to more than 800 participating employers and about 125,000 members.
But the review could still prompt tighter rules on pay approvals and conflicts of interest, and further leadership churn is possible. If sponsors or members lose confidence, the fund’s effort to add new employers could slow.
The board has not said how long Dobson will remain on leave or whether the review could lead to further action. Fahey is expected to run the plan in the interim.
CAAT has said it will weigh recommendations from the review against industry best practices while keeping its focus on benefit security.
