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November 2020 Roundup - Read the Employer News

2019 DCT contribution reconciliations – delayed

We have encountered a few challenges while processing the 2019 DCT contribution reconciliations.As a result, we are performing additional reviews to ensure the accuracy of the information provided.

We apologize for the extended delay in providing the final contributions reconciliation reports for 2019. We are working hard to have our reviews completed and sent to you as soon as possible.

We appreciate your patience and understanding.


Data collection tools - new requirements for 2021

To address feedback we received from you, additional data will be required for the 2020 data collection tool (DCT) that will be released in January 2021. Two new items are needed:

  • Total DBplus employer contributions (note: only member DBplus contributions were required for 2019)
    • This change is based on the feedback we received that the DCT should include both member and employer DBplus contributions
  • Last day worked will need to be provided for members who have a non-contributing (NC) status for the full year.
    • To streamline this process, providing this information in the DCT means you will not be required to review and update the separate NC lists that request this information after you have submitted your DCT.

Additional details will be provided in the DCT training session in January 2021.


Year-end processing deadlines - key dates

January 1 pension starts

All December 31 retirement applications should have been sent to the Plan by now to ensure members have time to complete their option documents in time to start their pensions on January 1.

  • December 2, noon – all member option documents must be returned to CAAT to ensure members do not encounter a delay in receiving their first pension payment on January 1.

Service purchase deadline – December 1 - to ensure purchases are processed and will be reflected on the 2020 annual statements, any outstanding payments must be remitted by December 1.

In-year reporting deadline – December 1 – all in-year leave start and stop forms and change of information forms must be submitted by December 1 to ensure the data is available in the data collection tool.


2021 rates

The 2021 rates will be reflected on our new website in the coming days. All online estimators have also been updated to reflect the applicable rates for 2021. Find some of the key 2021 rates below.

YMPE: $61,600

Plan contribution rates

  • DBprime – NO CHANGE
    • 11.2% on pensionable earnings up to the YMPE
    • 14.8% on pensionable earnings above the YMPE
  • DBplus (Ontario College Sector): NO CHANGE
    • 9% on all T4 earnings
  • DBplus (for DBplus-only employers)
    • If your members participate in DBplus only, and you have a phased-in contribution rate, refer to your Participation Agreement to confirm if there is a change to your contribution rates.

2021 Inflation protection rate: 0.78%

AIW enhancement rate: 4.98%

Check the Employer section of the website in the coming days for more rates.


Inflation protection – notifying members of inflation protection increase

The inflation protection increase on pensions in pay will be applied in January. The increase applies to pensions earned in DBprime and DBplus, survivor pensions in payment, deferred pensions, as well as DBprime bridge benefits. Increases are conditional on the funded status of the Plan.

An email will go out to retired members who subscribe to NewsLink next week to inform them of the rate, and we will post the rate on our website.

We are in the process of calculating the increases and preparing notification letters for all retired members and survivors that will be sent in early January.


Average Industrial Wage (AIW) increase - notifying DBplus members

The Average Industrial Wage (AIW) increase will be applied on January 1, 2021.

The increase is applied to the accrued pensions that DBplus active members earned up to the end of 2020. AIW increases are also applied to the pensions of members who have terminated employment and are within the extension of membership period.

AIW enhancements are designed to help DBplus pensions keep up with rising wages. The increases are permanent and cumulative, which means future AIW increases are applied on top of previous year’s increases. The calculation is based on the year-over-year percentage increase in Canada’s Average Industrial Wage Index.

AIW enhancements are conditional on the funded status of the CAAT Pension Plan.

All DBplus members will receive an email from CAAT to notify them of the update. Online estimators have been updated to reflect this new rate.

If you do not participate in CAAT’s member-direct email program: you will receive a pass-along email and a list of your DBplus members, and be asked to forward the email to them. Let your employer PA know if you'd like to start participating in the member-direct email program.


Employer attestation – 2020 training attendance reports due by December 31, 2020

Your PA will provide you with your final 2020 training attendance records after the portal training session in December. Please review and update your attendance report and return to your PA by December 31, 2020.

The 2020 training record will be attached to the Employer Attestation of Administrative Compliance, which will be sent to College Presidents and employer CEOs in January 2021.


CAAT's new website

CAAT is committed to providing service that makes things simpler - including our website! On November 18, our new website went live with a new URL. The newly designed www.caatpension.ca provides all the information you need in one convenient location.

We have improved our website to make it easier for you to use, based on feedback provided by you. Discover the most popular employer pages and tools by going to caatpension.ca and selecting “Employers.”

Visit www.caatpension.ca for all your administrative needs, and click on “employers” from any page for access to all employer resources.


New member and employer portals – what’s coming up?

The launch of the new member and employer portals is fast approaching. In early 2021, members and employers will have a new way to access their pension information online.

Employer portal

The employer portal will help streamline administration with the Plan. To help CAAT set up the user accounts for the employer portal, you will be asked to provide a list of your employees that should have access to the employer portal to your PA by December 11.

This list will include the user’s:

  • First name
  • Last name
  • Work email
  • Department

Stay tuned for more information on the portals in the Employer Update on November 24.

Member portal

Members will learn more about the member portal through updates on our website, an email from employers to their staff that are Plan members (sample emails will be provided), and a registration letter for members that will be eligible to use the portal when their account is created. The letter will include instructions for creating a password to access their account, and how to log into the portal. We expect the email from employers and the letter to be sent to members in January. We will provide more details on this communication in December.


Ontario College sector employers: Annual Termination Project – 90% complete

The Plan is currently preparing EOM letters and option packages for members who did not contribute to the Plan in 2019, and therefore were reported as non-contributory (NC) in the DCT.

To date we have sent 600 packages and the project is 90% complete. The NC project will be completed in November.


Give the gift of pension knowledge

We provide webinars to our members on a variety of topics, from Plan overview, retirement planning, introduction to DBplus, and pension purchases.

To arrange a webinar for your employees, contact Stephanie at presentations@caatpension.ca with your preferred date so we can secure it for you.


Upcoming Events

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

  • November 24 — Employer update
  • December 10 — Employer Portal training
  • December 11 at 1pm — CAAT office closure for virtual holiday celebration

Invitations for the webinars will be sent out approximately two weeks in advance.