Employer News - October Roundup

Posted for Employers, October 15, 2019

News & Events

DBplus Contributions – Annual Limit

The combined total of member and employer DBplus contributions cannot exceed the year’s Money Purchase Limit ($27,230 in 2019). Once total contributions for a member have reached the annual limit, no further contributions should be made for the rest of the year for that member. This is similar to the method used for Canada Pension Plan contributions. This aligns with the Plan Text, any applicable Participation Agreements or Memorandums of Agreement. Please contact your Employer PA directly with any questions regarding the application of the annual limit on DBplus contributions.

Exception: New employers in transition year

The only exception is when new employers join the Plan and the first year is a partial year. During this transition year, the annual limit will be prorated for the portion of the year in the CAAT Plan. After that year, the full annual Money Purchase Limit is applicable.

Last call for Pension Applications for members turning age 71

Be sure to send any outstanding pension applications for any members turning age 71 in 2019 so their pensions can start on December 1.

By law, members who reach age 71 and are still working must stop contributing to their pension plan and begin receiving a pension. The deadline to start the pension is December 1. 

There will be an insert included in the member option packages to inform them that, even if a member’s contributions to the CAAT Pension Plan must stop as of November 30, 2019, their employment is not impacted and they may continue to work.

In-year reporting deadline – December 2

The deadline to provide in-year reporting changes is December 2. All information received by this date will be loaded into the Data Collection Tool, for the annual data update process.

Annual employer administration process reviews: focus on DCT

These process reviews help us understand the issues you experience during the pension administration process. This year, the review will focus on the annual data collection process and the DCT. We will be conducting on-site review sessions during October and November with several employers.

We believe this continued collaboration will help us understand pension administration issues from both sides.

Pension confirmation process: Payment suspensions as of October 1

Pension payments were suspended for 77 retired members who did not return their pension payment confirmation forms. As of October 9, only 31 retired members’ pensions remain suspended.

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 quarterly reports – Q3 reports to be sent the week of October 15-18

The Q3 employer quarterly reports will include listings of your deferred members, members on EOM, and members who are enrolled and part time as of September 30, 2019.

These reports can assist you in determining if any re-hired employees are already enrolled in the plan and are still entitled to a benefit from the Plan.

Member Presentations – book a session for the fall!

We are gearing up for our fall member presentations! If you’d like the CAAT Plan to come out and deliver a presentation to your employees this year, there are still spots available.

We are also booking presentations for 2020, so get your requests in now so you can secure your preferred dates.

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 7 - Employer Education Session 

Pensionable earnings, service, contributions and pension adjustments

November 11 – CAAT Office Closure for staff event

November 26 Employer update

Invitations for these sessions will be sent out approximately 2 weeks before the session

Service Standard Levels

For the month of September 2019

Event Quantity Service standard compliance
Enrolments 579 processed 100%
Retirements 70 options provided
50 elections processed
Pension Estimates

73 estimates provided

Terminations 48 notifications of extension of membership (EOM)
51 termination option documents
39 elections processed

Service & Pension Purchases 31 quotes provided 97%