Plan overhaul gives dealers more control, stronger oversight and a modernized CADA 360 Benefits program
The Canadian Automobile Dealers Association (CADA) has finalized a new master services agreement with Canada Life, resetting how the CADA 360 Benefits program is governed, administered and positioned for the future.
Years in the making, the agreement introduces greater financial control, enhanced oversight and a more modern user experience while reinforcing the program’s not-for-profit structure. Many of the changes will roll out gradually, with benefits accruing over time rather than appearing as immediate cost reductions.
“We’ve essentially rebuilt the agreement from the ground up with the goal of putting more control and more long-term value back into the hands of dealers,” said Michael Psotka, CADA’s CFO and Executive Director, Member Services.
A shift in control and accountability
One key element of the new agreement is a fundamental change in how plan reserves are managed.
CADA will assume control of over $42 million in reserves tied to the Employee Life and Health Trust (ELHT), rather than leaving those funds under the insurer’s management. In practical terms, combined with the Existing Funds in the Demutualization Trust, the ELHT will have over $50 million in endowment funds that it can use for the benefit of dealers. This will give the Employee Benefits Committee more direct control over how surplus funds are managed and redeployed to support dealers and plan members.
Historically, returns on those reserves were modest. Under the new structure, CADA 360 expects to generate stronger long-term returns by working with its existing financial advisors. Decisions on how income from the funds will be used will rest with the Employee Benefits Committee.
Options include reinvestment into the plan to keep expenses low and TLR’s high, member education, and additional free benefits for plan members such as critical incident response and the very popular EAP program.
That flexibility is not theoretical. During the COVID-19 pandemic, the plan provided a premium holiday valued at roughly $25 million to participating dealerships—an example Psotka points to as a model for future action. The plan is positioning itself to do something similar again. An alternative to a premium holiday would be a Loyalty Program that rewards dealers with a credit upon renewal for years of past service.
Importantly, those funds are governed under a trust model, meaning they must be used for the collective benefit of plan members and employees—and not distributed directly to dealer members as rebates.
The agreement also introduces new layers of financial scrutiny.
For the first time, the plan will undergo an external financial review, with KPMG engaged to examine the program’s financial statements. The long-term goal is to move toward a full audit.
With annual premium revenue expected to approach $300 million, Psotka said the additional oversight reflects the scale and maturity of the program. “There’s a level of transparency and accountability that is expected with with a plan of this size,” he said. “We will be able to analyze trends and data like never before all with the intention of reducing costs and improving the member experience.”
Tackling claims costs and fraud
Another major focus of the updated agreement is tighter management of claims, particularly in areas that have historically driven long-term cost escalation.
CADA 360 will introduce enhanced short-term disability (STD) management through a third-party partner, aimed at helping employees return to work more quickly while ensuring claims are properly documented and supported.
The association is also strengthening its approach to fraud prevention. Under the new structure, CADA 360 will have access to a dedicated fraud investigator working within the Canada Life framework, alongside new tools such as social media monitoring and whistleblower mechanisms.
The intent is not to restrict legitimate claims, but to ensure the integrity of the system and protect dealers from unnecessary cost escalation tied to questionable or inflated claims.
Moving toward in-house administration
Perhaps the most significant operational shift is CADA 360’s move toward becoming its own third-party administrator (TPA).
Through a phased rollout, the association plans to bring plan administration in-house, giving it greater flexibility to manage different components of the benefits offering. Over time, this creates the ability to competitively source specific elements of coverage, allows the ELHT to communicate directly with members and provides vastly improved, cloud based technology and apps for both the dealer administrators and members.
“It gives us the ability to make decisions that are in the best interest of the plan,” said Psotka. “Because of the trust structure, profits are reinvested into the plan rather than going to shareholders — a major differentiator between the CADA Trust and competitors.”
The transition is expected to take up to three years, reflecting the scale of the program, dealer appetite for change, and the challenge of delivering expanded services to roughly 80,000 members nationwide.
As part of becoming a TPA, CADA 360 will roll out a new digital platform that will allow dealers and employees to access benefits information, manage claims, and connect with other CADA 360 programs through a unified interface.
The system is designed to replace legacy tools and streamline administrative processes, including employee onboarding and benefits enrollment. Over time, it will also connect with other CADA 360 programs and services, creating a more integrated ecosystem across programs.
The modernization effort is intended to improve user experience — a key competitive factor in the benefits space — while reducing administrative friction for dealership HR teams.
Long-term value over short-term gains
For dealers, the immediate impact of the agreement may be subtle. Rate reductions or visible savings will emerge over time as efficiencies compound across the system.
The broader objective is straightforward: run the plan more effectively, control costs, and build financial capacity that can be redeployed when needed.
CADA’s not-for-profit structure remains central to that approach. Unlike commercial providers targeting higher margins, the association operates with modest profit expectations, with any surplus reinvested into the program or redirected to fund advocacy and industry support.
“We’re here for the long term,” said Psotka. “If we run the plan better, that value comes back to dealers—either through the program itself or through the work we do on their behalf.”
A milestone moment
A formal signing ceremony was held in April to mark the new agreement, underscoring its significance for both organizations.
For CADA 360, the deal represents more than a contract renewal. It is a reset—one that repositions the benefits program for the next phase of growth for CADA 360 Risk Management programs, and aligns them more closely with the needs of modern dealerships.
As Psotka framed it, the changes are less about immediate transformation and more about long-term trajectory. “Many changes have already been implemented behind the scenes and more are will be evident to the dealers over the coming months. It’s like turning a cargo ship,” he said. “You don’t see it instantly—but over time, the impact is substantial. ”
