Employer Update Sessions

Employer Updates are monthly webinars for CAAT Pension Plan administrators. If you’re a Human Resources or Payroll representative with pension administration duties, you won’t want to miss these important sessions.


Employer Update webinar - Preview of roll out of DBplus to members - June 20, 2018

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Q&As from this session

How will the new DB Plus affect service purchases for OTRFT?

Service purchases and transfers will still be possible under DBplus and those provisions have been written into the plan text. The DBplus implementation team is currently working on the administration process and the calculation methodology. We’ll provide more information in the next few months.

When an OTRFT employee is on pregnancy/parental leave, will contributions still be based on deemed earnings as they will not have any taxable earnings?

It will be similar to the current process when someone goes on pregnancy/parental/adoption leave, they are able to contribute on deemed earnings. We’ll provide you with some examples on upcoming webinars.

Can you explain why OTRFT members are getting AIW enhancements that Full-Time members aren't getting? There may be some concern about equity.

A preliminary explanation is, in the current plan design, all members are accruing a benefit based on Highest Average Pensionable Earnings. Those earnings can increase as people continue in their career, and reflect the earnings throughout their membership period. In DBplus, members will accrue a pension in each year. That amount is preserved, and the AIW enhancements each year similarly reflect the advancement of earnings.

Your member preview referred to something called DBpremier. What is that?

DBpremier refers to the original plan design. DBplus is the plan name for OTRFT members. Note that the name DBpremier has not been finalized.

You mentioned that member communications have been sent out. Were these sent by Canada Post or email?

The communications to members were sent out by email. On Monday, all My Pension NewsLink subscribers received it. On Tuesday it was sent to those employers who are direct to member subscribers, and to “passalong” employers to forward to their members.

Could you confirm that Full-Time members who move to a permanent OTRFT switch to DBplus?

A member whose employment is part-time, or has a defined end date is considered OTRFT. We can talk about specific employment situations at a later date.

I think DBplus will be very attractive to Full-Time members, especially those who intend to retire at or after age 65. What do we tell Full-Time members?

Full-Time members accrue a valuable pension based on best 60 months of highest earnings throughout their career, multiplied by their service. It provides a really good benefit, and is suited for people who work full-time. It also provides ancillary benefits like LTD protection, which isn’t available to OTRFT members. DBplus has a benefit that is based on contributions, and is designed to match the types of employment patterns we see for members who work part-time.

Can information that is sent directly to members also be sent to all colleges for reference for when the employees contact us?

Yes. The information sent to members is also posted on our website on the News page for members.

What do we tell part-time employees who are thinking of joining? Should they join now or wait for the launch of DBplus next year?

There is always value in saving for retirement early. Part-time employees can choose to join now and start accruing a pension under the current plan design, then, next January, when they are switched to DBplus, so will the pension they’ve already accrued. Going forward, the pension they accrue this year will receive AIW enhancements.

Just as an aside, we will be asking you to suspend enrolments during the month of December, due to unique way OTRFT employees are paid in arrears. We’ll have more information for you about that in coming sessions.

Will you outline the options of lump-sum vs lifetime pension options, or mention that it is still an option that will stay the same?

There’s no change to the benefit options a member will have at termination/retirement. The same rules that apply now will be there under DBplus. What changes is the pension formula that determines how the pension is earned.

On what date can we expect to receive the finalized plan design and details for implementation?

We’re going to be having various Employer Education sessions over the summer to explain various parts of the plan, and we’ll be adding information to the website. We have a staggered roll out of information, and the DBplus communication road map will let you know when we’re putting the information out there. You can also contact your employer PA.


Employer Update webinar - April 24, 2018

Check with your employer PA for webinar slides.


Employer Update webinar - January 23, 2018

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Employer Update webinar - November 28, 2017

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Q&A from this session

Q. For members retiring on Dec 31, 2017, pension application is already in. If they want to purchase the strike service, what should we do?

A. Complete the strike purchase form and send the payment to the Plan as soon as possible.

Q. How do we treat OTRFT members who are part of the bargaining unit?

A. You will treat them the same as full-time members. You’ll have to calculate what their deemed hours would have been and carve out the service for the period of the strike.

Q. Are faculty members who are on a paid sick leave or paid professional leave to be treated the same as regular faculty during the strike?

A. Yes, these members would have stopped receiving salary during the strike and would be treated the same.

Q. What about employees who are turning age 71 in 2017?

A. We have reached out and told them they can make the strike purchase. Any members who are 71 in 2017, and who wish to purchase this service, will be contacting their employer to request a costing.


Employer Update webinar - July 25, 2017

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Q&A from this session

Q. Will interest be charged on contributions that were paid, but not reported on the DCT?

Employers will need to review the data in the DCT carefully prior to submitting. If the employer determines that they have deducted contributions for a member who does not appear on their DCT, they should add the member to the DCT and send the enrolment form to the Plan before submitting their DCT. In this scenario, there is no interest charged as we are capturing the contributions as part of the DCT contribution reconciliation. However, once the DCT data has been submitted to the Plan, if an employer determines that a member was not included in the DCT and no enrolment form was sent, then the employer will need to send in the enrolment form and remit the contributions plus interest to the Plan. The contributions that were remitted but not reported on the DCT will not be captured in the DCT contribution reconciliation process so the employer will have an over-contribution in their overall contribution total which will be credited back to the employer during the reconciliation.

Q. If a full time Faculty member changes to a full time Admin position, will the member’s contributions be affected, since different formulas are used to calculate their contributions?

A. No. We don’t annualize Full-Time earnings, so you can report the combined annual amounts on the DCT. Any differences would typically fall within the tolerance levels for validations.


Employer Update webinar - April 25, 2017

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Employer Update webinar - January 24, 2017

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2016 Updates