Have questions about DBplus?

Posted for Members, September 26, 2018

During our member webinars in June, members asked a number of questions about DBplus. Here are the top six questions we’ve received about the new plan design.

Q: I’m a pension plan member who works part-time or on contract. Will I join DBplus?

A: Yes. You remain a member of the CAAT Pension Plan, but will start earning a pension under the DBplus design. DBplus is designed to meet the unique needs of “other than regular full-time” (OTRFT) employees.

Q: What happens to my pension in the current Plan design as a member who works part-time or on contract?

A: 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.

Q: What if I move from part-time to full-time or vice-versa?

A: You will keep earning a pension from the CAAT Plan. If you move from part-time to full-time, you will automatically begin earning your pension under the current plan design. If you begin working part-time, you will start earning your pension in DBplus. In either situation, the switch will be automatic, and your employer will start deducting and matching contributions at the applicable rate.

When you retire, your total pension will be a combination of the pension you earned in the current Plan design plus the pension you earned in DBplus, plus the total AIW enhancements. In addition, for every year you contribute to DBplus, you earn an additional year towards your early unreduced eligibility in the current Plan design.

Q: Do I have to do anything for the transition from part-time to full-time or vice-versa?

A: No, you don’t have to do anything. The switch will be automatic.

Q: I already have retirement plans – do I have to change them now?

A: No, you are still eligible to retire as early as age 50 and as late as age 71. Being in DBplus means you can retire any time from age 50, with an early start adjustment, up to the end of the year you reach age 71. For more, watch the webinar and try the DBplus Estimator to see what your pension will look like and to model different retirement dates.

Q: Will I still get as valuable a pension from DBplus?

A: The focus of DBplus is on maximizing your lifetime pension and providing similar value per contribution dollar as the current Plan design. In DBplus, the average member over a typical career can expect $8 in pension payments for every $1 they contribute.

Have more DBplus questions? Watch the webinar recording on the DBplus page to get answers.

Are you full-time? If so, you will continue to earn a pension under the current design.

Full-time employees joined 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.