Are you considering joining the Plan?
As a part-time (or full-time contract) employee of a participating employer, you have the option to join the CAAT Pension Plan at any point during your employment.
As of January 1, 2019, part-time or contract employees who join the CAAT Pension Plan will earn a valuable lifetime pension under the Plan's DBplus design. DBplus maximizes your lifetime pension and provides similar value per contribution dollar as the current plan design, which we refer to as "DBprime".
Part time or contract employees who haven’t joined the CAAT Plan have the option to join DBplus by the CAAT Pension Plan at any time during employment.
What is DBplus?
Designed to meet the needs those who work part time and on contract, DBplus provides you with the opportunity to earn a valuable defined benefit (DB) pension with a fixed contribution rate, matched dollar for dollar by your employer. Your pension under DBplus includes the valuable features members want: a secure lifetime pension in retirement, plus conditional inflation protection, plus survivor benefits.
Visit the DBplus page to learn more, and watch the videos on how it works.
Before making your decision to join, review the following resources to learn more about DBplus.
DBplus Webinar: Your opportunity for a secure, lifetime pension
As of January 1st 2019, all existing part-time members will begin contributing to DBplus. At the same time, DBplus will also become available to part-time employees who have not joined the CAAT Pension Plan yet.
Estimate the value of joining DBplus
The new DBplus Evaluation tool lets you get an estimate of the valuable lifetime retirement income you can earn in DBplus, and compare it to the contributions you would make. Simply enter a few pieces of information to get an estimate that can help you determine if joining DBplus is right for you. Try it now!
What happens when you join DBplus?
If you choose to join the Plan, you will begin contributing and building valuable, secure retirement income in DBplus. When you retire, you will start collecting a lifetime pension which includes valuable additional features such as inflation protection increases that help protect the buying power of your pension, and survivor benefits for your eligible spouse.
Only you can decide if joining is right for you. Once you have joined the Plan, you remain a member. As long as you are employed by a participating employer, you cannot opt out and stop contributing.
DBplus features at a glance
Here's a quick look at the benefits of joining DBplus. Visit the DBplus page for details on how DBplus makes it easy to build a stable, predictable retirement income for life.
- A secure pension from the CAAT Pension Plan
- Conditional inflation protection increases applied to your pension
- Flexible retirement dates
- Valuable survivor benefits
- Options for your pension if you leave your job before retirement
How do DBplus contributions work?
You will contribute for as long as you are employed by a participating employer, on every pay. Your employer matches your contributions, dollar for dollar.
- DBplus contribution rates are a fixed 9% on your total earnings (matched by your employer).
- Pension plan contributions are tax-deductible, which means they reduce your income for tax purposes.
- If you take on another contract, or work for another participating employer, you remain a contributing member, and build your pension on those earnings as well.
- If you begin to work full time for a participating employer, you automatically start contributing and earning a pension under the current Plan design.
- Once you join the Plan, you cannot opt out or stop contributions while employed.
Consider if membership is right for you
While it’s never too early to start saving for retirement, it is important to consider if membership in DBplus fits into your budget and career plans. In deciding to join, you should think carefully about your own situation. Different factors will be relevant for each individual and only you can determine the action that is best for you. It's important to note that, once you have joined the Plan, you remain a member. While you are employed by a participating employer you cannot opt out and stop contributing.
Get answers to your DBplus questions
We've answered some of the most-asked questions about joining DBplus, below. If your question isn't answered here, contact our member services team.
What if I work more than one contract or at more than one participating employer?
If you enrol in the CAAT Plan with one participating employer, you must contact any other participating employer you work for, and ensure that the HR department is aware that you are a member of the Plan. In this way, contributions can be deducted for all employers on a timely basis, which avoids missed contributions requiring catch-up. You will make contributions on every contract, at every employer, and earn a pension with each employer.
What happens if my contract ends or if I leave my job before retirement?
If you are no longer employed by a participating employer, and you are not yet eligible to retire, you remain a Plan member for 24 months. If you take a job at a new employer that participates in the CAAT Plan during those 24 months, you will resume contributing to the Plan and you will earn additional benefits.
Your benefit is locked-in, which means even if you leave the Plan before retirement, it must be used for retirement income, and cannot be taken as a cash payout.
If your hours are flexible and your earnings go up or down, you still contribute to the Plan on every pay, based on your total earnings.
How is my DBplus pension calculated?
Click here to learn more about the pension formula under DBplus, which will apply to all OTRFT members starting January 1, 2019.
Can I estimate my DBplus pension before joining?
Click here to try the DBplus Evaluation Tool. It will give you an estimate of the contributions you would make, and the pension you could earn, starting from the date you join DBplus.
Can I leave the Plan after I’ve joined?
Once you have joined the CAAT Pension Plan, you remain a member. Starting January 1, 2019 all existing members who work part time or on contract will make the switch to DBplus. While you are employed by a participating employer you cannot opt out and stop contributing.
What happens if I move to full-time employment?
If you move to full-time employment, you will join the current plan design (which we call "DBprime") and start making contributions and earning a pension at the DBprime rates.
For every year you contribute to DBplus, will get you a full year of early retirement eligibility service recognized under the current plan design. This will help you reach your earliest unreduced retirement date under the current plan design sooner. When you retire, your total pension would be the combined pension earned under both plan designs.
How soon can I join DBplus?
All OTRFT employees can join DBplus as of January 1, 2019.
Can I purchase additional pension under DBPlus?
Purchases under DBplus will be available starting in 2019. Visit the DBplus page for details as they become available.
Ready to join?
Once you've reviewed the resources and made the decision to join DBplus, download and fill out the form below, and take it to your HR department. If you wish to join DBplus during the month of December, 2018, your membership will start effective January 1, 2019.
Enrolment form (PDF)
Only you can decide if joining the CAAT Pension Plan is right for you. Once you’ve reviewed all the information and used the tools, you should be ready to decide if you want to join now and start building your retirement income in DBplus. You have the option to join at any time during your part-time employment, and begin building a pension from that point forward, but the sooner you join, the sooner you start building your future pension. Once you join, you can’t opt out.