Pension Plan for Employees of Healthcare Excellence Canada

your merged plan

Merger Update

March 18, 2024

The asset transfer is complete

The assets have transferred from the Pension Plan for Employees of Healthcare Excellence Canada (Registration Number 1069277) (the “HEC DB Pension Plan”) to the CAAT Pension Plan. The Ontario pension regulator, Financial Services Regulatory Authority (“FSRA”), provided consent to transfer of the assets from the HEC DB Pension Plan to the CAAT Pension Plan on February 2, 2024. The assets, totaling approximately $23.8M, were transferred to CAAT on March 8, 2024.

With the transfer of assets, the CAAT Pension Plan will assume responsibility for all Defined Benefit (“DB”) pension payments to members of the HEC DB Pension Plan.

Former members of the HEC DB Pension Plan should have received a communication with further details about their pension now that the assets have transferred. Should you have any questions, please email info@dbplus.ca.

How we got here

On September 19, 2022, 91% of the HEC DB Pension Plan members voted in favour of merging with the CAAT Pension Plan.

All eligible HEC employees started contributing to, and earning a pension under the CAAT’s DBplus and DBprime plan designs accordingly effective October 1, 2022 (“effective date”):

DBprime DBplus
  • All full-time employees who are existing members of the HEC DB Pension Plan hired before October 1, 2020
  • All part-time employees who are existing members of the HEC DB Pension Plan hired before October 1, 2020
  • All employees who are existing members of the HEC DB Pension Plan hired on or after October 1, 2020
  • All full-time employees currently participating in the Group Registered Retirement Savings Plan (“GRRSP”), and
  • All full-time non-plan members

Part-time employees who were not members of the HEC DB Pension Plan as of the effective date would have the option to join DBplus on or after the effective date. Employees who were hired on a temporary basis as an intern who were not a part of the HEC DB Pension Plan would be eligible to join DBplus upon the completion of two years of continuous employment.

CAAT filed applications with FSRA on March 9, 2023 for its consent to the transfer of assets from the HEC DB Pension Plan to the CAAT Pension Plan.

On February 2, 2024, FSRA provided consent to transfer the DB assets from the HEC DB Pension Plan to the CAAT Pension Plan. Members of the HEC DB Pension Plan were notified that their past pension benefits will be transferred to and replicated in the CAAT Pension Plan.

What is my DBprime contribution rate?

Effective January 1, 2025, you will contribute 10.2% on your earnings below the Year's Maximum Pensionable Earnings (YMPE) and 13.8% on your earnings above the YMPE. This is a 1% decrease to both member and employer contributions.

DBprime
 Employee contributions
 Employer contributions
Rate of contribution of earnings up to YMPE*
10.2%
10.2%
Rate of contribution of earnings more than YMPE
13.8%
13.8%

*YMPE stands for year’s maximum pensionable earnings set by the Canadian government. For 2025, the YMPE is $71,300.

What is my DBplus contribution rate?

Effective October 1, 2022, you and your employer will make contributions into DBplus based on a percentage of your eligible earnings indicated in the table below:

DBplus
 Employee contributions
 Employer contributions
Rate of contribution of earnings
9.0%
9.0%

Who do I contact if I have questions about my pension?

HEC Member Services at the CAAT Pension Plan

Toll Free: 1.866.350.2228

Local Calls: 416.673.9000

Email: member@caatpension.ca

Details about your CAAT Pension

The total combined retirement pension for active members with a DB entitlement in the HEC DB Pension Plan will be made up of two parts:

HEC DB past pension + CAAT pension = Total annual pension payable from the CAAT Pension Plan

  • Your HEC DB past pension is the defined benefit pension you have earned up to, and including, September 30, 2022
  • Your HEC DB past pension is replicated and paid from the CAAT Pension Plan following the transfer of assets
  • Your CAAT pension refers to the pension you are earning under the DBprime or DBplus plan design (as applicable) as of October 1, 2022

Enhancements

Conditional inflation protection in retirement

Your entire pension, once in pay, will continue to grow with the CAAT Pension Plan’s annual conditional inflation protection increases at a rate of 75% of the year-over-year percentage increase in the Consumer Price Index (“CPI”) (up to a maximum increase of 8% with a carry forward provision for any amount above 8% in a given year), beginning January 1, 2023, for any benefit earned under the CAAT Pension Plan and January 1, 2024, for any benefit earned under the HEC DB Pension Plan. These increases will allow your pension to continue growing with the economy, maintaining your spending power in retirement. Inflation protection increases are conditional on the CAAT Pension Plan Funding Policy. As the merger is successful:

  • Any benefit you earn under the CAAT Pension Plan will have annual conditional inflation protection increases applied at the beginning of each year your pension is being paid.
  • The benefit you earned under the HEC DB Pension Plan will receive the CAAT Pension Plan’s conditional inflation protection increases applied on the January 1st of the year you start your pension, but not before January 1, 2024. After the completion of the merger, if you begin receiving your pension prior to January 1, 2038, the inflation protection increases applied will not be conditional on the CAAT Pension Plan’s funded status and will be automatically granted. After this period expires (with the last adjustment applied to pensions in pay on January 1, 2038), inflation protection increases will be conditional on the funded status of the CAAT Pension Plan.