The Ontario Public Service Employees Union has removed CAAT Pension Plan Chair Don Smith from its board, The Globe and Mail reported.

OPSEU representatives on CAAT’s sponsors’ committee formally revoked his appointment, according to the Globe. The media outlet cited confirmation that it received from Darryl Bedford, co-chair of the sponsors’ committee, and CAAT spokesman Stephen Hewitt.

The move came after Smith was suspended from his position recently amid mounting governance concerns tied to decisions approved by the board.

The concerns include a large CEO payout and the handling of a workplace relationship involving the chief executive, the Globe reported previously.

The OPSEU originally appointed Smith to CAAT’s board of trustees. His suspension and removal followed the abrupt departures of three senior executives in January and growing unease over board oversight. The executives’ exits triggered scrutiny of governance practices at the $23-billion pension plan, sources familiar with the matter previously told the Globe.

Two issues were central to the controversy. The first was a $1.6-million payment approved by board leadership to compensate CEO Derek Dobson for unused vacation time. According to the Globe, this was the third such payment that he received, and the payout appears to be at odds with CAAT vacation guidelines that limit how much time employees can carry over or have paid out.

The second controversial issue involved the board’s decision to sanction a consensual relationship between Dobson and a CAAT employee, a matter that some insiders questioned given the CEO’s authority within the organization, according to the Globe.

The sponsors’ committee comprises eight members who represent the interests of the plan’s employers and membership, the Globe reported.

CAAT previously told the publication that Smith was suspended as OPSEU’s nominee but technically remained a trustee unless formally removed. However, the Globe subsequently reported that he continued to perform his duties as chair despite the suspension.

The situation has also drawn the attention of Ontario’s pension regulator, which has acknowledged its awareness of it but not commented further.

CAAT is a multiemployer pension plan founded in 1967 to serve Ontario’s colleges of applied arts and technology. It has since expanded to cover more than 800 public- and private-sector employers and approximately 125,000 members across the province.

Photo: CAAT