Plan membership has more than doubled since the launch of DBplus in 2018
Toronto, July 10, 2024 – CAAT Pension Plan (“the Plan”), one of Canada’s fastest-growing defined benefit (DB) pension plans, is pleased to announce it has surpassed 100,000 members. The milestone demonstrates the increasing demand for retirement income security among Canadians, and the Plan looks forward to expanding pension coverage in more sectors across the country.
Since the launch of the award-winning and innovative plan design DBplus in 2018, CAAT has seen tremendous growth, with nearly 400 new participating employers joining the Plan and adding more than 50,000 new members. CAAT provides modern DB pensions for employers in 20 industries, including the for-profit, non-profit, and broader public sectors.
“CAAT has been working hard to provide more Canadians with lifetime retirement income so that they can have confidence to enjoy their retirement years,” said Derek W. Dobson, CEO and Plan Manager, CAAT Pension Plan. “We are incredibly proud to reach this milestone and to serve our members. We will continue to innovate modern DB pensions and provide more Canadians with stable retirement income and the peace of mind that it brings.”
A renaissance for DB pensions
Due to the advancements in modern workplace pension solutions, such as DBplus, DB pensions are experiencing a resurgence across Canada.
Recent studies and reports, including a paper by Stephen Poloz, former governor of the Bank of Canada, suggest a shift in pensions is underway. Poloz states that “...natural forces [are] in motion that should foster a renaissance of the DB pension plan.”
Creating a win-win retirement solution for both members and employers are at the forefront of this renaissance. With DBplus, employers across different industries and sectors can offer their employees the advantages of a DB pension. This modern solution means employers pay a fixed-rate contribution, like a defined contribution (DC) plan, and no longer need to run their own pension plan, while employees contribute to a workplace plan that provides secure lifetime retirement income, in addition to benefits like inflation protection.
A mission to provide secure, valuable and sustainable workplace retirement solutions—Key dates and milestones
June 1, 1967—CAAT Pension Plan is created to provide retirement support to the Ontario college system.
1995 – CAAT becomes an independent jointly sponsored pension plan (JSPP), which means decisions and risks are shared equally between employers and members.
1999 – The first non-college employer is added when the Ontario College Application Service joins the Plan. Within six years, 10 more non-college employers sign up.
2006 – CAAT establishes its funding policy, which sets guidelines for the use of contributions, reserves and conditional benefits to keep the Plan sustainable over the long term.
2009 – Derek W. Dobson named CEO and Plan Manager of CAAT Pension Plan.
2014 – CAAT reaches 40,000 members.
2016 – CAAT welcomes employees of the Royal Ontario Museum (ROM) to the Plan. It is the first merger of a single-employer defined benefit (DB) plan into a jointly sponsored pension plan in Ontario.
2018 – CAAT launches the innovative DBplus design, with Torstar being the first non-public sector employer to join. DBplus wins the Innovation in Plan Design and Reform Award from the World Pension Summit.
2022 – CAAT introduces more flexibility to new employers and members with DBplus with Contribution Choice, which allows employers to offer a range of contribution rates and to phase-in their contributions, accommodating the unique workplace needs of employers.
2024 – By May, the CAAT Pension Plan reaches 100,000 members, with more than 440 employers across Canada.
About CAAT Pension Plan:
Established in 1967, the CAAT Pension Plan is an independent, jointly governed plan that offers two highly desirable designs of a defined benefit pension. CAAT’s award-winning DBplus plan design is leading an extraordinary pace of growth for the Plan. Originally created to support the Ontario college system, the CAAT Plan now proudly serves more than 440 participating employers in 20 industries including the for-profit, non-profit, and broader public sectors. It currently has more than 100,000 active and retired members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. On January 1, 2024, the Plan was 124% funded on a going-concern basis.
Learn more at: www.caatpension.ca.
For more information:
Media Relations
CAAT Pension Plan
media@caatpension.ca
For information on how employers can join CAAT, please visit:
caatpension.ca/pension-solutions/how-to-join