CAAT Pension Plan brings the best of DB, DC, and Group RRSP to Canadian workplaces
Enhanced contribution options respond to employer and employee requests
TORONTO, Nov. 15, 2021 /CNW/ - The CAAT Pension Plan continues to enhance workplace pensions in Canada with a Modern defined benefit (DB) plan design that adapts to a variety of workplace needs. Its most recent innovation, DBplus with Contribution Choice launches January 1, 2022. In addition to filling the need for a simple, value-driven workplace pension plan that improves attraction, retention, and lowers stress, Contribution Choice responds to industry requests for additional contribution flexibility — typically only available in defined contribution (DC) or group RRSP programs.
In 2019, CAAT's DBplus revolutionized the workplace retirement space in Canada by bringing the best of DB and DC together. The award winning DBplus provides lifetime retirement income to members at a fixed and affordable cost for employers. Like DC or group RRSPs, there are no balance sheet risks and employers are only responsible for making their required contributions.
Contribution Choice provides even more options to employers and employees. Employers select the fixed contribution rates, and associated employer match, that they want to offer (subject to certain limitations). Employees choose which of those rates meets their changing needs and financial goals.
Organizations can seamlessly transition to an efficient, low-risk Modern DB pension plan. The Contribution Choice enhancement further supports pension uptake among members, while delivering the recruitment, engagement, and competitive advantages that employers value.
The new features continue to enhance the flexibility of DBplus that is common to DC plans and group RRSPs, while providing the stable benefit security of a Modern DB plan. DBplus with Contribution Choice joins a suite of tailored solutions offered by the CAAT Pension Plan to accommodate a wider range of culture, change management and labour needs, including rate differentiation by employee class and easy transitions from their current arrangements.
The Plan is open to all sectors and equipped to accommodate workplaces of all types, including those that currently offer DB plans, DC plans, group RRSPs, or no workplace retirement savings plans at all. CAAT encourages employers and union representatives to contact the CAAT team for a tailored pension solution that meets their objectives.
Since its launch in 2019, DBplus now has over 200 participating employers. CAAT has members across Canada from 11 industries and has support and participation from 16 unions and member associations. Notable employers include Brink's Canada, Sanofi Pasteur, Greater Toronto Airport Authority, Conference Board of Canada, United Way of Greater Toronto and Lawyers Financial.
DBplus with Contribution Choice will be available to Canadian employers on January 1, 2022.
Quotes:
"Our aim is to provide pension solutions that meet the dynamic needs of Canadian workplaces, and the peace of mind from having dependable, lifetime income in retirement. Employees overwhelmingly want secure predictable lifetime retirement income that comes from a leading not-for-profit pension leader. With the race for talent gaining momentum, CAAT ensures that a no risk Modern DB plan is a great option for employers, regardless of previous pension arrangements, type of industry, size, or sector. Contribution Choice is one of many ways CAAT plans to adapt to what Canadians need from their pension to hold strong to being 'Canada's Workplace Pension of Choice.'"
• Derek W. Dobson, Chief Executive Officer and Plan Manager, CAAT Pension Plan
About CAAT Pension Plan
Established in 1967, the CAAT Pension Plan is an independent, jointly governed plan that offers two designs of a defined benefit pension. CAAT's award-winning DBplus plan is leading an extraordinary pace of growth for the Plan. Originally created to support the Ontario college system, the CAAT Plan now proudly serves more than 200 participating employers from various sectors including the for-profit, nonprofit, and broader public sectors. Currently, it has over 74,000 active and retired members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. At January 1, 2021, the Plan was 119% funded on a going-concern basis. Learn more at: www.caatpension.ca.
About DBplus with Contribution Choice
- CAAT continues to evolve the pension landscape and provide innovative solutions by offering DBplus with Contribution Choice.
- DBplus with Contribution Choice combines the flexible contribution rates common to DC plans and group RRSPs with the advantages and security of a DB plan.
- CAAT's growth and innovation benefits all Canadians and is another way CAAT adds value and furthers benefit security for its current and future members.
SOURCE CAAT Pension Plan
Media Contact: Vicki Lam, 647-633-8205, [email protected]
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