Message from Derek W. Dobson, Chief Executive Officer and Plan Manager

There is a broad misconception that retirement planning stress only impacts workers in the later stages of their working life. We know from a large body of research that Canadians across all age groups do not feel adequately prepared for retirement. Major economic events like the ongoing pandemic and its impact on work emphasizes that planning for tomorrow has never been more important. This is one of the many reasons why CAAT is leading the way in providing innovative pension solutions to more employees across Canada.

As a member of one of the most secure and sustainable pension plans in Canada, you have the peace of mind of knowing that your pension benefit is secure and payable for as long as you live. Your lifetime pension does not change with the ups and downs of the economy and markets.

Research shows that Canadians who participate in large Defined Benefit (DB) plans like ours have the lowest employee stress levels, compared to those who participate in group savings plans, like group RRSPs and Defined Contribution (DC) arrangements. Members in those retirement savings plans likely faced investment losses in 2020 or worse had to delay their retirement until the investments recovered.

Even though investment markets recovered quickly, DC and RRSP participants will continue to face complex investment decisions and tighter budgeting to make their money last in retirement. Unfortunately, this often leads to a much lower standard of living or a return to the workforce after retiring.

The advantages of participating in a Modern DB pension plan like CAAT go beyond the enjoyment of predictable lifetime retirement income. It means that:

• You don’t have to worry about outliving your savings or managing your investments through economic volatility.
• Your pension will increase from our popular and valuable inflation protection provisions.
• Your pension is fully protected during market downturns.
• The protection will extend to your eligible spouse through survivor benefits we offer at no charge.

These features are very popular since they protect you and your spouse in a wide range of scenarios. CAAT’s DBprime and DBplus designs make retirement easier, especially for those who may not have the time or expertise to manage investments in an increasingly complex and volatile financial market.

We believe every Canadian deserves to have a secure retirement. However, the past 18 months have shown that not all retirement plans are created equal, and Modern DB plans like CAAT deliver excellent value when it matters most. I am happy to report that the Plan remains well funded at 119%, which means we have set aside $1.19 for every dollar of pension promised to our members. You can rest easy knowing that you belong to one of the most secure and sustainable pension plans in Canada.

CAAT will continue to focus on providing secure lifetime pensions with features that employers and members want and need regardless of the changing circumstances.

Currently open to workplaces across Canada, DBplus can help more Canadians like you feel better prepared for retirement. The more we innovate, the more members and employers will join the Plan, which benefits us all with an even more secure pension plan. If you have friends or family who don’t have a modern DB pension in their workplace, consider sharing this newsletter with them. It will be a positive step forward in preparing them for retirement and ultimately building a better future.