what employers get
Generally, full-time employees in the organization or group are enrolled in the Plan upon hire. Those who work part time must be notified upon hire and contract renewal that they have the option to enrol in the Plan at any time. CAAT provides employers with language for letters of offer and contracts to explain the eligibility rules to new hires. Employers are then required to provide CAAT with a monthly file that lists part-time employees who have not enrolled in the Plan. CAAT sends notices to these non-members, advising them of their option to join going forward.
Under tax law, members of registered pension plans (RPPs) receive a Pension Adjustment (PA), reported on their T4 slip, that reduces their RRSP room. For DB plans, the reduction reflects the value of pension benefit they accrued in the RPP.
Using a spreadsheet supplied by CAAT, or using your own tool, the employer calculates the Pension Adjustment for each member of DBplus using this formula and reports it on the member’s T4:
As an employer, you’ll send us a monthly list of all employees who are enrolled in the Plan, including their work email addresses so that we may send the periodical member newsletter directly to these members.
As an employer, you’ll also report new employee enrolments, employment changes that affect date of hire or enrolment, leaves of absence, and other member events during the year, using forms available in the employer administration manual.
Through the annual data collection process, due in March, employers use an online tool to report each individual member’s T4 earnings and contributions, any breaks in service (if not provided during the year), and the Pension Adjustment for the prior calendar year. If your organization is merging a defined benefit plan with CAAT, the Plan will work with you and any third-party administrators to collect any additional data that may be needed.
At CAAT, we provide data reconciliation training webinars each year.
Following validation of the annual data, we will generate personalized annual pension statements that are mailed directly to members in the spring.
As an employer, you’ll be responsible for making members aware of their options to purchase additional pension and transfer prior retirement savings into the Plan. CAAT shoulders most of the administration surrounding these transactions and offers resources to explain purchases and transfers to members, including group presentations, a booklet, and an online estimator. Where the member opts to make a purchase or transfer, your organization will complete a form to supply earnings data and prior plan information for the applicable period(s) of employment.
A detailed description of employer responsibilities and related forms can be found in the CAAT Pension Plan Employer Manual.
Our Employer Services team is here to help. Once your organization
becomes a CAAT participating employer, as part of the onboarding process
your organization will be assigned a Pension Analyst who is ready to
answer your questions.
CAAT is developing member and employer portals that will move more transactions online to save employers time and reduce risk.
We're here to answer your questions.
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