In early December, the Plan’s Governors passed two amendments that change the definition of “Child” and “Disabled” in the CAAT Pension Plan Text. These changes came into effect December 1, 2021. These amendments are positive for Plan members and beneficiaries, as they broaden the definition of who qualifies as a dependent child for survivor benefits paid from the CAAT Plan, and who can qualify as disabled under DBprime.

Definition of a Child for pre- and post-retirement survivor benefits

The amendment to the definition of Child for DBplus and DBprime has been expanded to include:

i) dependent children up to age 25 who are attending an educational institution, and

ii) dependent adult children who are unable to support themselves due to disability, provided that such child became disabled prior to age 18 (or age 25, if they were attending an educational institution).

The change to the definition of Child impacts pre and post retirement survivor benefits. For pre-retirement survivor benefits, this means that if a member or former member dies on or after December 1, 2021 without an eligible spouse and their jurisdiction of employment is Ontario or Nova Scotia, the children’s pension that would be payable will now include children in the above two categories, as well as any dependent child under age 18. The expanded definition of child applies to post-retirement survivor benefits for retired members that were employed across Canada.

Disability under DBprime

The definition of “Disabled” under the DBprime plan design was changed to remove the requirement that the member must be receiving benefits from a long-term disability (LTD) plan. It instead defines disabled more broadly based on legislation.

This change applies to any member whose disability starts or continues on or after December 1, 2021. In most cases the Plan will continue to be able to rely on receipt of benefits from an LTD plan as evidence of disability. However, Plan staff will now be able to have an independent review carried out on claims for the disability waiver under DBprime in situations where the claim is questioned, a lump sum payment has been made, the member has been denied coverage, or the member does not have coverage. This change does not apply to the DBplus plan design.

More information on both of these amendments will be shared with members and employers in 2022 as Plan staff develop processes and update Plan documents. In the interim, if you are aware of a situation that may be impacted by these Plan amendments, please reach out to your Employer PA.