your merged plan
January 1, 2025
The merger of the Alberta Milk Employees' Pension Plan (“Alberta Milk Pension Plan”) and the CAAT Pension Plan is a two-step process that is regulated by legislation.
On December 16, 2024, 90% of members of the Alberta Milk Pension Plan voted in favour of the merger with the CAAT Pension Plan.
All active members of the Alberta Milk Pension Plan and permanent employees who were not participating the Alberta Milk Pension Plan started contributing to and earning a pension under CAAT’s DBplus plan design effective January 1, 2025 (“effective date”).
All permanent employees hired on and after the effective date will be required to join DBplus on their date of hire.
Effective January 1, 2025, you and Alberta Milk will make contributions to DBplus based on a percentage of your eligible earnings dependent on the option elected.
For active members of the Alberta Milk Pension Plan, there was a one-time opportunity to elect your contribution rate from one of two options in the table below. If you did not make an election within the specified timeline, the default rate was applied.
For active members of the Alberta Milk Pension Plan, your employer’s contribution rate will be subject to a temporary reduction following the date of the transfer of assets and for approximately 86 months after such date. During this time, Alberta Milk will contribute at the reduced rate of 6% as indicated below and your contribution rate will remain the same, in accordance with the option you originally selected. However, your accrued benefit will be determined based on your contribution rate and your employer’s deemed contribution rate of 7% or 9%, depending on the option you selected. After approximately 86 months has passed, your Employer will resume their full contributions at the rate specified below. This would only apply to members with a legacy DB entitlement.
*During this temporary reduction period, your employer will be deemed to have contributed 7% or 9% of Earnings (‘Earnings’ as defined under the Alberta Milk Pension Plan), based on your selected contribution option. This would only be applicable to members of the Alberta Milk Pension Plan with a legacy DB entitlement.
For all other permanent Alberta Milk employees, there was a one-time opportunity to elect their contribution rate from one of two options in the table below and you will not be subject to the temporary reduction period. If you did not make an election within the specified timeline, the default rate was applied.
For the merger to proceed, the Alberta Superintendent of Pensions (“Alberta Superintendent”) and other relevant regulators must approve the transfer of assets from the Alberta Milk Pension Plan to the CAAT Pension Plan. An application will be filed with the regulator in the coming months. Once approved, active Alberta Milk Pension Plan members will be notified that their past pension benefits will be transferred to and replicated in the CAAT Pension Plan.
Alberta Milk Pension Plan member services at CAAT Pension Plan
Toll-free: 1-866-350-2228 Toronto area: 416-673-9000 Email: AlbertaMilk@caatpension.ca
If the Alberta Superintendent and other relevant regulators consent to the merger, the total combined retirement pension for members of the Alberta Milk Pension Plan will be made up of two parts:
Alberta Milk Pension Plan past pension + CAAT pension = Total annual pension payable from the CAAT Pension Plan
All other permanent Alberta Milk employees, you have been enrolled in DBplus as of January 1, 2025.
DBplus enhancements while you're working
At the start of each year in which you are a contributing member, AIW enhancements are applied to the total pension you earned in DBplus to the end of the previous year.
AIW enhancements are cumulative – each year’s enhancement applies to the previous year’s base pension, plus all previous enhancements. AIW enhancements are based on the year-over-year percentage increase in Canada's AIW index, measured from July 1 to June 30. AIW enhancements to your DBplus pension are conditional on the CAAT Pension Plan Funding Policy.
If the merger is completed, the pension you earned under the Alberta Milk Pension Plan will grow in line with annual increases in the AIW, effective January 1, 2026, and annually thereafter through to termination of membership, death, or retirement. Note that the AIW enhancement on the pension earned under the Alberta Milk Pension Plan is not conditional on the funded position of the CAAT Pension Plan.
Conditional inflation protection - enhancements after you retire
Any benefit you earn under DBplus will have annual conditional inflation protection increases applied at the beginning of each year your pension is in pay. Inflation protection increases to your DBplus pension are conditional on the CAAT Pension Plan Funding Policy.
The annual increase is calculated as 75% of the change in the average Consumer Price Index (CPI) from one year to the next (up to a maximum increase of 8% with a carry forward provision for any amount above 8% in a given year).
If the merger is completed, once in pay, the pension you earned under the Alberta Milk Pension Plan will be eligible for conditional post-retirement inflation protection in accordance with the CAAT Pension Plan provisions, subject to the CAAT Pension Plan Funding Policy.