The focus of DBplus is on maximizing lifetime pensions for members who work part-time or on contract.
- DBplus offers a secure lifetime defined benefit pension plus valuable additional features
These features include conditional inflation protection enhancements in retirement and a 60% survivor pension for your eligible spouse.
- The pension you’ve already earned as a member who works part-time or on contract continues to grow while you work
The pension you’ve earned in the CAAT Plan up to December 31, 2018, will continue to increase alongside your DBplus pension for as long as you are a contributing member. Based on the Plan’s funding level, your total pension, which is a combination of the pension you earned in the current Plan design plus the pension you earned in DBplus, receives an annual increase based on the Average Industrial Wage (AIW) index, as measured by Statistics Canada, an agency of the Government of Canada. When granted, each AIW enhancement becomes a permanent part of your promised pension.
- Contribution rate of 9% matched by your employer
In DBplus, you contribute a fixed 9% on the total earnings you receive from your employer, including overtime earnings, and your employer matches your contributions dollar for dollar.
- A design for those who work part-time or contract
Your benefit under DBplus is not based on how long you have worked, but rather on how much you have earned and contributed. The more you earn, the greater your contributions - and in turn, the higher your lifetime pension.
- Retirement features designed for members who work part-time or on contract
Under DBplus, you can retire at age 65. If you retire before age 65, your pension receives an early start adjustment to reflect that you will be receiving your pension for longer than if you retired at age 65. The early start adjustment rate is between 3% and 5% per year you are under age 65, and is based on the Plan’s funding level. The adjustment rate has been set at 3%. This factor is reviewed each time a valuation is completed and filed with the regulators.
Your pension continues to grow if you keep working and contributing after age 65.
- Seamless transition if you change jobs
If you start working full-time:
You will start making contributions and earning a pension under the current Plan design. Your pension in DBplus continues to grow with conditional AIW enhancements. For each year you contributed to DBplus, you earn a year towards any early unreduced eligibility for benefits you earn in the current Plan design.
If you start working for a different participating employer:
You remain a member of the CAAT Pension Plan, and will continue to accrue a pension under DBplus if you’re working part-time or on contract at another participating employer, or under the current Plan design if you become a full-time employee. Be sure to let your new employer know that you are already a member of the Plan. This will ensure that your contributions are deducted and matched by your employer so you can earn more pension.
- Increase your pension with purchases or transfers
You will have the option to purchase eligible periods of employment or transfer pensions in respect of any registered pension plan in Canada, to consolidate into a bigger pension. This means the pension you earn is backed by the CAAT Plan’s 118% funded ratio as of January 1, 2018. We will provide you with more information on DBplus purchase options in 2019.
- Continue to enjoy the benefits of membership in a sustainable, secure, defined benefit pension plan
You remain a member of the CAAT Pension Plan while earning a pension through DBplus. There’s no change to the Plan’s governance structure or investment program. All members are part of the CAAT Pension Plan.
Are you full-time? If so, you will continue to earn a pension under the current design.
Full-time employees join under the current Plan design when hired. If your employment switches to OTRFT, you will begin earning a pension in DBplus. The Pension you earned in the current Plan design will continue to increase alongside your DBplus pension for as long as you are a contributing member.