Now more than ever, employees are demanding more focus on their financial wellness. And employers are listening. When the Ontario Dental Association and its subsidiary, Accerta, came looking to switch from a group RRSP to a low-risk solution for lifetime retirement income, the CAAT Pension DBplus Plan was an easy choice.

With 79% of Canadians saying they are likely to change jobs for a better pension (HOOPP and Abacus Data , May 2021), employers are transitioning their existing arrangements to a lifetime retirement workplace pension plan – providing equal value to both employees and the organization.

At CAAT, we are dedicated to making retirement better for Canadians by offering secure workplace pensions and retirement income for life. Read on to discover how CAAT’s modern DB plan design, DBplus was able to support the employers need to offer a competitive compensation package with reliable lifetime retirement benefits.

Background

Since 1867, the Ontario Dental Association (ODA) has been the voluntary professional association representing the dentists of Ontario. Today, more than 10,000 dentists in Ontario are members of the ODA. It serves as the prime advocate on behalf of dentists and promotes high standards and accessibility for dental care for Ontarians.

The ODA’s subsidiary, Accerta is a social enterprise enabling healthcare equality for all and is committed to reducing inequities in public programs and lessening the administrative burden for governments and their stakeholders. They leverage new technologies to keep pace with elevated privacy and security demands and are responsive to the increased need for transparency and accountability related to public expenditures.

The Situation

The Ontario Dental Association and its subsidiary, Accerta wanted to provide a valuable defined benefit pension to attract and retain talent. Simultaneously, they wanted to provide employees with a low-risk solution for lifetime retirement income that provided greater value-for-money compared to the group registered retirement savings plan (RRSP) already in place for their approximately 125 employees. The ODA and Accerta sought CAAT Pension Plan’s DBplus as a defined benefit workplace arrangement, which met all its requirements.

The CAAT Solution

Through CAAT’s modern defined benefit pension, ODA/Accerta are now able to offer a workplace pension arrangement that provides more value for contribution dollars when compared to RRSPs or defined contribution plans (source: Value of a Good Pension, HOOPP).

• CAAT allows employees who are members of the employer’s group RRSP plan to transfer their existing RRSPs to a secure defined benefit (DB) plan.
• CAAT eliminates balance sheet risk because there is there is no pension debt or liability related to unexpected changes in interest rates or stock market events.
• Contributions can be accounted for on the same basis as contributions to an employer RRSP while providing a highly valuable DB plan at the same fixed employer cost.
• CAAT oversees all Plan administration, governance, and member communications, allowing ODA and Accerta to focus on their core businesses.

The Outcome

With CAAT’s contribution flexibility, existing employees were offered two contribution options with a phased-in schedule. This flexibility provides an easier transition for employees. ODA and Accerta were able to successfully add a powerful attraction and retention tool, while providing a superior lifetime retirement income to employees by joining the CAAT Pension Plan.

“The Ontario Dental Association strives to be a top employer and that includes offering a competitive compensation package with reliable retirement benefits. It is important to us that everyone on our team has the peace of mind throughout their career that they have a secure retirement plan. We are pleased to partner with CAAT on this goal.”

- Frank Bevilacqua, CEO, Ontario Dental Association

Why DBplus?

• Joining DBplus ensures employees earn DB pensions that pay lifetime income in retirement. If ODA and Accerta’s employees continued to participate in a group RRSP, they would risk outliving their retirement savings.
• DBplus offers secure, predictable lifetime pension income with early retirement features, conditional inflation protection and survivor benefits — all highly desirable to ODA and Accerta’s employees.
• Canadians pay the highest MERs in the world, which can drastically reduce the amount of savings they can accumulate in a RRSP over time. Through DBplus, employees will have access to a not-for- profit structure and pooling of investment and longevity risk.

To learn more about how DBplus can meet the needs of your organization, visit our Pension Solutions Page or contact us at Pension-Solutions@caatpension.ca.