United Way finds a better way to secure employee’s retirement
Not-for-profit mitigates balance sheet liability risks, achieving cost efficiencies, and securing past pension benefits, with overwhelming approval from active DB pension plan members.
Industry: Not-for-profit
Employer size: <300 employees
Objective: Pension consolidation
About United Way Greater Toronto
As the largest non-government funder of community services in the Greater Toronto Area (GTA), United Way Greater Toronto reinforces a crucial community safety net to support people living in poverty. United Way’s network of 300 agencies and initiatives in neighbourhoods across Peel, Toronto and York Region works to ensure that everyone has access to the programs and services they need to thrive. Mobilizing community support, United Way’s work is rooted in ground-breaking research, strategic leadership, local advocacy and cross-sectoral partnerships committed to building a more equitable region and lasting solutions to the GTA’s greatest challenges.
The challenge
United Way looking for a new path to the future
United Way Greater Toronto wanted to withdraw from the business of administering its ballooning employee pension plan. Its pension structure included a mix of defined benefit (DB) and defined contribution (DC) plans.
The organization aimed to minimize the risks associated with its single-employer DB plan but wanted to safeguard its employees' previous pension benefits. Additional objectives included identifying cost efficiencies and aligning all employees under a unified pension plan. However, any proposed changes to move to a unified pension scheme would require union agreement, and a DB merger would require the approval of DB pension plan members who are required by Ontario regulations to vote on a merger.
The solution
Uniting pension plans under DBplus
With CAAT’s DBplus, United Way could consolidate its DB and DC plans into a single, cohesive pension structure, while also enjoying fixed costs and reducing pension administration responsibilities. Additionally, DBplus could offer the flexibility to phase-in or gradually adjust contribution rates, ensuring affordability for employees.
Under the previous DC plan, employees carried the responsibility of investing and managing their own pension and risked outliving their retirement savings. Under DBplus, employees would earn a DB pension that pays a monthly retirement income for life, which also features survivor benefits, early retirement options, and conditional inflation protection.
The results
Employer and employees embrace DBplus
After learning more about DBplus through CAAT-hosted education sessions, United Way’s active DB pension plan members voted a staggering 99% in favour of merging with CAAT. This level of approval demonstrated how much United Way employees understood the value of DBplus for their retirement security.
With DBplus, United Way simplified and streamlined the complexities and administrative burden, costs, and responsibilities associated with administering multiple pension plans. Additionally, DBplus was able to provide similar benefits to the United Way’s previous DB plan, which the employees held in high regard.
With the weight of managing pension plans off its shoulders, United Way could get back to what it does best – serving the community.
“As a non-profit organization committed to combating poverty within our community, United Way is mindful of how we use our resources. With CAAT’s DBplus, we’ve secured a cost-effective pension solution ensuring our employees can have a worry-free retirement in the future.”
Daniele Zanotti
Chief Executive Officer,
United Way Greater Toronto
Uniting multiple pension plans under one roof
When it comes to keeping costs low, simplifying complex pension structures, while securing lifetime pensions for employees, CAAT’s DBplus pension plan design helps organizations:
- Deliver cost-effective pension solutions
- Eliminate pension liabilities from balance sheets
- Reduce administrative obligations
- Enhance total rewards packages to drive talent attraction and retention
DBplus enables organizations across Canada to offer a world-class pension, giving employees what they want and need—at affordable contribution levels.
Let’s build financial security together
Connect with CAAT to learn how we can help you integrate a modern, sustainable retirement solution into your talent and benefits strategy.
Learn more about CAAT's solutions | Follow CAAT on LinkedIn
Secure. Scalable. Ready for what’s next.