In this edition
New Contributors Episode – Listen Now!
Our hosts sit down with Dawn Marchand, CEO at Lawyers Financial, to explore opportunities around financial wellness and retirement planning in the workplace.
Listen now
Updates and reminders
Important year-end deadlines
Mark your calendars for these year-end processing deadlines. If you have questions or need support, please contact your Employer PA.
Please read the table carefully to find the right deadline for you. Processes and deadlines differ for employers that work directly with CAAT and those that work directly with CAAT administration partners.
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Item
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Employers working directly with CAAT
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Employers working directly with CAAT administration partners
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In-year reporting
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Deadline: December 3, 2021
Please submit in-year leave start and stop forms and change of information forms.
If you use DCT to report your data: To ensure all data is updated in our pension administration system and can be provided back to you on the DCT, please make sure to meet the deadline.
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Will be collected by administration partner.
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Pension purchases
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Deadline: December 2, 2021
To ensure all purchases are processed and reflected on the 2021 Annual Statements, please submit any outstanding purchase payments.
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Deadline: December 2, 2021
To ensure all purchases are processed and reflected on the 2021 Annual Statements, please submit any outstanding purchase payments.
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Employer Education Sessions - Review 2021 Attendance reports
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Deadline: December 17, 2021
Please review your attendance reports for 2021 and provide any updates to your Employer PA.
In January 2022, all final reports will be sent to presidents and CEOs with your Employer Attestation.
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Attendance will be confirmed on your attestation form.
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For awareness: Member documents due for January 1, 2022 retirements
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Deadline: December 2, 2021
All member option documents must be completed and returned by the end of the day in order for members to receive their first payment on time.
Any member option documents received after December 2, 2021 and by noon on December 16, 2021 will be processed and payments will be made on January 5, 2022.
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Deadline: December 10, 2021
All member option documents must be completed and returned by the end of the day in order for members to receive their first payment on time.
Any member option documents received after December 10, 2021 and before December 16, 2021 will be processed and payments will be made on the next pension cycle.
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For awareness: Member documents due for terminations or death
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Deadline: December 6, 2021 at noon
All termination and death documents should be sent to the Plan to ensure payment on December 13, 2021. This is the last payment that will be made in 2021.
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Deadline: December 8, 2021 at noon
All termination and death documents should be sent in to ensure payment on December 15, 2021. This is the last payment that will be made in 2021.
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Rates-at-a-glance for 2022
The 2022 rates are now on our website and have been updated in PAL. We have also updated the Pension Adjustment calculator and Contribution calculator in the Employer Manual as well as all smart forms.
YMPE: $64,900
Plan contribution rates
- DBprime – NO CHANGE
- 11.2% on pensionable earnings up to the YMPE
- 14.8% on pensionable earnings above the YMPE
- DBplus (Ontario College System) – NO CHANGE
- DBplus employers joined since 2019
- If you have a phased-in contribution rate, your rate may change in 2022 in accordance with your Memorandum of Agreement or Participation Agreement.
RCA earnings threshold: $193,715
Maximum PA (DBprime only): $30,180
Maximum BE (DBprime only): $3,420
Money purchase maximum (used to determine maximum DBplus contributions): Total member and employer contributions: $30,780
View the 2022 rates-at-a-glance
Pensions in payment to increase by 1.81% in 2022 with inflation protection
We are pleased to announce that the inflation protection increase on pensions in payment will be 1.81% in 2022. The increase applies to pension earned in DBprime and DBplus, survivor pensions in payment, deferred pensions, as well as DBprime bridge benefits from 1992 onwards.
We are currently preparing notification letters for all retired members and survivors. Retired members who subscribe to NewsLink will receive an email this week, and the rate will be posted on our website.
DBplus pensions to increase with AIW by 5.43% for 2022
On January 1, 2022, all DBplus pensions will increase by 5.43% with the Average Industrial Wage (AIW) enhancement.
The increase is applied to the accrued pensions that DBplus active members earned up to the end of 2021. AIW increases are also applied to the pensions of members who have terminated employment and are within the extension of membership period.
AIW enhancements are designed to help DBplus pensions keep up with rising wages. The increases are permanent and cumulative, which means future AIW increases are applied on top of previous year’s increases. The calculation is based on the year-over-year percentage increase in Canada’s Average Industrial Wage Index.
AIW enhancements are conditional on the funded status of the CAAT Pension Plan.
The online estimators have been updated to reflect this new rate.
Portal updates
Read this if: you have access to PAL
Coming soon: Multi-factor authentication options
In December, we will introduce another authentication option for PAL users to securely log into the portal. You will have the opportunity to choose from two options for multi-factor authentication.
- Using an authentication application (new option): Start by downloading an authentication application on your mobile device or on your computer’s web browser. When you log in, the authenticator will provide you with a one-time code you can use to log in securely.
- Using a mobile phone (existing option): Continue to use your mobile phone number to receive a one-time code via text message.
Keep an eye out for more details on the multi-factor authentication options this week.
Resolved: Issues with submitting pension applications in PAL
Issues recently experienced with submitting 2022 pension applications in PAL have been resolved. You are now able to submit retirements for 2022 that are three months in the future.
We apologize for any inconvenience and appreciate your patience while we addressed this issue.
Announcements
DBplus with Contribution Choice
Earlier this month, CAAT announced the upcoming launch of DBplus with Contribution Choice. This new DBplus feature is one of the ways CAAT is evolving its pension offerings to meet its strategic objectives to grow and diversify Plan membership, further strengthening benefit security and plan sustainability.
The Contribution Choice option will likely attract organizations that currently operate in a defined contribution or group RRSP environment (where this type of contribution flexibility is common) and that want to provide their employees with the security of a defined benefit pension plan like ours.
There will be no impact on pension administration for existing employers, or on the benefit being earned or collected by current members. If you have questions, contact your Employer PA.
Canadian defined benefit (DB) pension plans collaborate on retirement security video
To mark Financial Literacy Month, defined benefit (DB) pension plans from across Canada collaborated to create a video to raise awareness about the value of retirement income security.
The video underscores the importance of getting all the facts when making decisions that can impact an individual’s financial future in retirement before those decisions are made.
Share this video with your members so they can understand how their contributions, together with their employer’s, provide a secure lifetime pension in retirement.
Watch the video: What’s Important
New member education sessions reach 1,000 members
Our annual fall webinar series hosted 20 webinars for members in English and French that covered our most popular topics. We introduced a fresh design for these sessions and the results speak for themselves, highlighting the value and importance of offering pension education sessions to your employees:
- 98% of attendees said they found the webinar valuable
- 99% of attendees said they would recommend a session to a colleague
We continue to host regular sessions for all members, as well as sessions tailored specifically to your members. You can choose from one or all of the sessions we offer:
- Plan overview
- Retirement planning
- DBprime service purchases
- DBplus pension purchases
Booking has started for 2022. Please reach out to presentations@caatpension.ca to book a webinar for your employees.
Book a member session now
Upcoming events
Block your calendar for this upcoming event:
- November 30 - Employer Update – Join us for an Employer Update
Please note that our office will be closed on the following dates:
- December 10 after 1:00 pm for a staff holiday event
- December 24 after 1:00 pm until January 3, 2022 for the holidays