CAAT Pension Plan crosses milestone

CAAT Pension Plan has surpassed 100,000 members, highlighting the rising demand for retirement income security among Canadians. 

The Plan, one of Canada's fastest-growing defined benefit (DB) pension plans, aims to expand pension coverage across various sectors in the country.   

Since the 2018 launch of DBplus, an award-winning and innovative plan design, CAAT has experienced significant growth. Nearly 400 new employers have joined, contributing to the addition of over 50,000 new members.  

CAAT provides modern DB pensions to employers in 20 industries, including the for-profit, non-profit, and broader public sectors.   

Derek Dobson, CEO, and plan manager of CAAT Pension Plan, emphasized their dedication to providing Canadians with lifetime retirement income.  

He stated, “CAAT has been working hard to provide more Canadians with lifetime retirement income so that they can have confidence to enjoy their retirement years. We are incredibly proud to reach this milestone and to serve our members. We will continue to innovate modern DB pensions and provide more Canadians with stable retirement income and the peace of mind that it brings.”   

The resurgence of DB pensions in Canada can be attributed to advancements in modern workplace pension solutions like DBplus. Stephen Poloz, former governor of the Bank of Canada, noted in a recent paper that natural forces are fostering a renaissance of the DB pension plan.   

DBplus offers a win-win solution for both members and employers. Employers across different industries can offer their employees the benefits of a DB pension without running their own pension plans.  

Instead, employers pay a fixed-rate contribution, similar to a defined contribution (DC) plan, while employees contribute to a workplace plan that ensures secure lifetime retirement income and additional benefits like inflation protection.   

CAAT's mission includes providing secure, valuable, and sustainable workplace retirement solutions. Key milestones in CAAT's history include:   

• June 1, 1967: CAAT Pension Plan established to support Ontario college system retirees. 

• 1995: CAAT becomes an independent jointly sponsored pension plan (JSPP), sharing decisions and risks equally between employers and members. 

• 1999: The Ontario College Application Service becomes the first non-college employer to join the Plan, followed by 10 more within six years. 

• 2006: CAAT implements a funding policy to guide the use of contributions, reserves, and conditional benefits, ensuring long-term sustainability. 

• 2009: Derek W. Dobson is appointed CEO and Plan Manager. 

• 2014: CAAT reaches 40,000 members. 

• 2016: The Royal Ontario Museum (ROM) employees join CAAT, marking the first merger of a single-employer DB plan into a jointly sponsored pension plan in Ontario. 

• 2018: CAAT launches DBplus with Torstar as the first non-public sector employer to join. DBplus wins the Innovation in Plan Design and Reform Award from the World Pension Summit. 

• 2022: CAAT introduces Contribution Choice in DBplus, offering employers a range of contribution rates and phased-in contributions to meet unique workplace needs. 

• 2024: By May, CAAT Pension Plan reaches 100,000 members with over 440 employers across Canada.