Youth Services Bureau members join the CAAT Plan
Following the success of the ROM Pension Plan merger into the CAAT Plan, interest has grown in the CAAT Plan’s “growth initiative”, with a number of pension plans exploring the benefits of such a merger. Most recently, the Board of Trustees and Sponsors’ Committee agreed to the merger of the Youth Services Bureau of Ottawa (YSB) Pension Plan into the CAAT Plan. The YSB pension committee, made up of member and employer representatives, explored various options for keeping their defined benefit pensions intact. It concluded that a merger with the CAAT Plan, with its proven record of benefit security and sustainability, was the best option for them.
The YSB merger is similar to the ROM plan merger in 2016. Regulations require that YSB Plan members vote on the merger proposal. The consent process ended on December 15, 2017, and YSB members approved the merger. YSB active plan members became members of the CAAT Plan on January 1, 2018. The next step is to apply to the pension regulator to allow the YSB Plan assets to transfer into the CAAT Plan. The YSB Plan merger is consistent with the CAAT Plan governors’ priorities of benefit security and sustainability. Growth in membership helps the CAAT Plan continue to achieve these goals for current and future Plan members. The YSB Plan merger does not change your pension benefit, but it helps keep the Plan strong. What’s more, it is a key requirement of the Plan’s governors that the financial health of the Plan cannot decline as a result of a merger. This means that the Plan will not assume another plan’s pension deficit or subsidize contribution rates of new employees that join.
Details about YSB
YSB was founded in 1960 to deliver programs and services that support at-risk youth and their families. The organization is one of Ottawa’s largest and most comprehensive non-profit agencies serving individuals 12 years of age and older, and offers services in French and English. YSB maintained a $33 million defined benefit, single employer pension plan for its employees.
Watch: “Growing membership” progress report
Last fall, Derek Dobson, CAAT Pension Plan CEO and Plan Manager, hosted a webinar about the Plan’s “Growing Plan membership” initiative. The update focused on the Plan’s progress in this area, and the benefits and implications for the future of the Plan.
Why the interest?
As Derek explained during the webinar, a recent study shows that Modern Defined Benefit (DB) pension plans, like the CAAT Plan, offer the features Canadians want: lifetime, predictable income in retirement, with early retirement features as
protection against unforeseen life changes. What’s more, Canadians are willing to pay appropriate amounts to get them.
If you missed the webinar, be sure to visit our webpage “Growing Plan membership” to watch the recording.