Secure Pensions for Everyone
By Derek W. Dobson, Chief Executive Office and Plan Manager
At CAAT, we know how important your defined benefit (DB) pension is to you. You can take comfort in knowing that your monthly pension is secure and will be paid for your lifetime.
We are proud of our tradition of long-term security and stability. Our long-term focus on risk management and prudent investment strategy has led CAAT to become one of the highest performing and secure pension plans in Canada.
Members have the confidence that their pension will be paid every month, no matter what is happening in the markets. For retirees like you, it means you can rest assured that your pension is secure and you will continue to receive monthly payments for life.
Remaining financially independent in retirement is a top priority for workers and retirees. However, far too many do not have access to a valuable pension plan that can help them reach their financial goals. A report by the National Institute on Ageing found that almost 4 out of 5 Canadians aged 55 and older (79%) believe that their retirement income through registered retirement savings plans (RRSPs) and government benefits such as the Canada Pension Plan, Quebec Pension Plan and Old Age Security will not be enough to provide a comfortable retirement. Imagine if those were your colleagues, your friends, or your family.
CAAT is working to improve that reality because we believe everyone deserves a better tomorrow. Our purpose is simple: to improve retirement income security for Canadians.
We are passionate about accomplishing our mission to provide secure, valuable and sustainable workplace retirement solutions, and breaking new ground to expand coverage across Canada. Starting by designing innovative pensions that offer employers the affordability and flexibility they want, combined with the security and sustainability that employees need.
Since expanding outside of Ontario and becoming the only Canadian jointly-sponsored DB pension plan open to employers of all sectors and sizes, I have been inspired by the scale of support for our purpose among Plan members such as yourself and the broad community of pension advocates and business leaders I meet every day.
Both employers and employees agree that a valuable workplace pension makes all the difference in helping Canadians to save adequately for retirement. Across all income levels, 7 out of 10 Canadians and employers say that employers have a responsibility to offer a pension plan so that employees can have adequate retirement income.
Unlike in a defined contribution or group RRSP plan, DB members don’t need to worry about how investment markets perform. They can plan – and enjoy – their retirement stress-free knowing that a dedicated team of investment professionals manage the funds and benefits will be paid regardless of how the market or employer performs.
Help spread the message that every Canadian deserves to build a secure stream of retirement income and peace of mind once they retire. CAAT’s latest member survey shows that 93% of retired members believe in CAAT making lifetime retirement income accessible to more Canadian workers and workplaces. Together, we can show more workers what CAAT retirees already know: every worker deserves to retire well, and everyone deserves a better pension.
Derek W. Dobson
Chief Executive Officer and Plan Manager
CAAT Pension Plan
Join the CAAT Insights Panel
Your pension plan is evolving. We’re always adapting to meet your needs, and as a retired member of the Plan, we have some exciting opportunities for you.
Our CAAT Insights Panel is a community of CAAT members who are interested in sharing their feedback and we’re looking for panelists. We’d like your feedback on everything from how we communicate with you to the services we provide.
Your pension plan is an integral part of your life, providing a reliable, steady income in retirement. You will be invited to take part in surveys, polls and discussions with the team at CAAT and other panel members. That’s why your feedback on our services is so important.
Send an email to firstname.lastname@example.org letting us know you’re interested in being a part of the CAAT Insights Panel.
Let’s talk retirement, Canada
As CAAT Plan members, you have a stable and secure source of retirement income. Your defined benefit pension plan is a really big deal!
But in Canada, we have a really big problem. Over the next 20 years, Canada’s senior population is expected to grow by 68%*. And we’re living longer too – 50% of Canadians will reach age 90**. That is a lot of people who need a reliable retirement income. We need to be prepared – and to do so, we need to start talking.
That’s why we went straight to Canadians to see how they’re saving for retirement. Our lead Pension Educator, Steve Hyland, asked Canadians what they know about retirement and if they’re feeling ready.
Check out our video on YouTube or Instagram. Then jump into the conversation by commenting. You can also share the story with your friends and family.
* Source: https://www.cihi.ca/en/infographic-canadas-seniors-population-outlook-uncharted-territory
** Source: https://www.osfi-bsif.gc.ca/Eng/oca-bac/as-ea/Pages/mpsspc.aspx
We’re on Instagram! Follow us @caatpensionplan
At CAAT Pension Plan, we are determined to spread the word that pensions are for everyone. That’s why we launched our new Instagram channel. Visit our page to learn about defined benefit pensions in a bite-sized format, play fun games, and hear from members about how their pension is making a difference in their lives.
Join our 800+ followers on Instagram, where we’re building a community of Canadians who care about retirement security – and financial literacy at the same time. All fun, no filler! You’ll want to like, share and save every post.
Follow us on Instagram
Plan changes coming in 2025
At CAAT we're focused on providing secure pensions to our members, paid for life. When the Plan does well, members and employers see more value for their contribution dollar.
Your pension is secure
CAAT Pension Plan remains in a strong position at 124% funded and has moved into Level 5 of the Funding Policy, as of January 1, 2023. There are six funding levels that help the Plan maintain a long-term focus and achieve its key strategic goals of benefit security, contribution stability and intergenerational and inter-design equity.
Moving into Level 5 of the funding policy is a very big deal. This means that the CAAT Plan remains stable and secure, due to its prudent, long-term approach to managing funding.
How does this benefit you?
If you are retired or a survivor receiving a pension, your pension remains secure. You will continue to receive the same monthly pension payments for life. The Plan Governors also approved conditional inflation protection increases through to 2026.
How do Plan Governors make these decisions?
The Plan’s Governors take a thoughtful, prudent approach with every decision made to keep the Plan – and your pension – secure for the long term. CAAT’s Funding Policy and funding valuations are used to make decisions that balance equity and benefit security. Ultimately, these Plan changes mean that your Plan is strong and your pension is secure.
What are the Plan changes for active members?
DBprime contribution rates will go down by 1% starting January 1, 2025. Starting in 2025, these members will contribute 10.2% on their earnings below the Year’s Maximum Pensionable Earnings (YMPE) and 13.8% on their earnings above the YMPE. This decrease will apply to both member and employer contributions.
The DBplus pension formula includes an annual pension factor used to calculate these members’ pensions. Beginning January 1, 2025, the annual pension factor will be 9.5% of member and employer contributions (an increase from the current rate of 8.5%).
Learn more about Plan changes