Employer News - November Roundup

Posted for Employers, November 8, 2019

News & Events

Pension Benefit Application Form – Member signature no longer required

In order to make processes more efficient, we will be removing the member authorization section (section G) from the Pension Benefit Application form.

Section G will be removed from both the smart form and PDFs versions of the form when we update it with the 2020 rates.

In the meantime, you can submit the current version of the form with no member signature until the revised forms are available.

Take note of the year-end processing deadline of December 2

The following processes all have December 2 deadlines:

Deadline to return member documents for January 1 retirements - All December 31 retirement applications should have been sent to the Plan by now to ensure members have time to complete and return their Option Documents by December 2, to ensure their pensions start on January 1.

Purchase payment deadline - To ensure purchases are processed and reflected on the 2019 annual statements, any outstanding payments must be submitted by December 2.

In-year reporting deadline – All in-year leave start and stop forms, and change of information forms, must be submitted by December 2 in order to have the data updated in our pension administration system to feed back to employers on the DCT. 

Inflation protection - pensions to increase by 1.47% in 2020

We’re pleased to announce that the inflation protection increase on pensions in pay will be 1.47% this year. It applies to all pensions in payment and deferred pensions, for service after 1991.

All members and survivors in receipt of a pension will receive a notification letter early in the new year.

AIW – DBplus pensions to increase by 2.25% in 2020

Based on the Plan’s funding level, members of DBplus receive an annual increase on their total pension, based on the Average Industrial Wage (AIW) index.

On January 1, the AIW increase is applied to the pensions of active members who contributed to DBplus in the previous year. The increase is applied to the member’s total pension (which is their DBplus and DBprime pension combined, for members who switched into DBplus after being an active DBprime member).

AIW increases are also applied to accrued benefits for members in the extension of membership (EOM) period.

We will be announcing the AIW increase and inflation protection rate to members on our website later this month.

2020 rates

YMPE: 58,700

Plan contribution rates

  • DBplus: 9%* on all T4 earnings
  • DBprime – NO CHANGE

11.2% on pensionable earnings up to the YMPE
14.8% on pensionable earnings above the YMPE

*If your members participate in DBplus only, refer to your Participation Agreement for your applicable 2020 rate.

2020 Inflation protection rate: 1.47%

AIW increase: 2.25%

DBprime RCA earnings threshold: $175,156

Maximum PA: $27,230

Maximum BE: $3,092.22

Money Purchase maximum (NEW – used to determine maximum DBplus contributions): $27,830

Total DBplus contributions:  

Member: $13,915

Employer: $13,915

Combined: $27,830

Maximum DBplus earnings: $154,611

Pension payment confirmation – Update on suspended pensions

As of November 1, there are 25 retired members with suspended pensions as a result of the annual pension payment confirmation process. All employers with members who have suspended pensions have been notified. This year, the process enabled us to identify one previously unreported death.

If you are contacted by a retired member or surviving spouse reporting their pension has been suspended, please refer them to our member hotline immediately, at 1-866-350-2228 or member@caatpension.on.ca.

Employer Attestation - Review and update your 2019 training records

Your Employer PA will be providing you with your final 2019 training attendance records in November after the final Employer Education Session. Please review and update your attendance report and send to your Employer PA by December 29, 2019.

The 2019 training record will be attached to the Employer Attestation of Administrative Compliance, which will be sent to College Presidents and Employer CEOs in January 2020.

The 2019 Attestation covers administration activity carried out in 2019. The Employer Attestation is part of the strategy to reduce and manage risk in all aspects of operating the Plan, including governance oversight.

New resource for members - Retirement Planning Guide

The Retirement Planning Guide is a new resource for all members of the CAAT Pension Plan earning a pension in DBprime or DBplus. This 24-page booklet helps members understand their pension, and how it fits into their total retirement income. It provides an overview of the DBplus and DBprime pension calculations and retirement age milestones, as well as resources for members who are ready to get started.

With the launch of the new Retirement Planning Guide, the two retirement planning pamphlets (“Normal Retirement: Financial security for life” and “Early Retirement: Starting your pension before age 65”) are now obsolete.

The Retirement Planning Guide is available for download from the CAAT Pension Plan website, and will be provided to members who attend Retirement Planning presentations. A separate version for DBplus-only employers will be made available.

To order print versions to distribute to members, contact your Employer PA, or email contact@caatpension.on.ca with the desired quantity and language, and they will be shipped to you directly from the Plan.

Member Presentations – attend a regional session on November 16

Our next regional Retirement Planning event is on Saturday, November 16, from 1:30 pm – 3:00 pm at George Brown College, Waterfront campus. Invitations have already been sent out, but it’s never too late to encourage your members to register to attend the presentation. Remember that members are invited to bring a family member.

Book a presentation at your workplace!

If you’re interested in organizing an onsite presentation for your employees, or if you’d like to host a regional session, contact Sylvia Golebiowski at presentations@caatpension.on.ca.

Upcoming events

Be sure to take note of the following dates, and register for and attend upcoming sessions:

November 11 – CAAT Office Closure for staff event

November 26 Employer update

Invitations for the November 26 update will be sent out approximately 2 weeks before the webinar.

Service Standard Levels

For the month of October 2019

Event Quantity Service standard compliance
Enrolments 1,816 processed 100%
Retirements 96 options provided
52 elections processed


Pension estimates

98 estimates provided

Terminations 52 notifications of extension of membership (EOM)
62 termination option documents
26 elections processed

Service purchase quotes 54 quotes provided 93%