At CAAT we’re focused on providing secure pensions to our members, paid for life. CAAT is also a “profit for members” organization. That means when the Plan does well – and it has been! – members and employers see more value for their contribution dollar.
Thanks to its prudent, long-term approach to managing funding, CAAT remains in a strong position at 124% funded and has moved into Level 5 of the Funding Policy, as at January 1, 2023. This means that conditional benefits such as inflation protection increases have been granted through to 2026. And the Plan’s Governors have also approved valuable changes to both DBprime and DBplus, starting January 1, 2025.
DBprime members – your pension will cost you less
Your DBprime contribution rate will go down by 1% starting January 1, 2025. You build the same great pension, but with lower contributions!
Starting in 2025, you will contribute 10.2% on your earnings below the Year’s Maximum Pensionable Earnings (YMPE) and 13.8% on your earnings above the YMPE. This decrease will apply to both member and employer contributions.
DBplus members – your pension will grow faster
Your DBplus pension formula includes an annual pension factor used to calculate your pension. For the pension you earn after January 1, 2025, the annual pension factor will be 9.5% of member and employer contributions (an increase from the current rate of 8.5%). This means your pension grows over 10% faster, while your contributions stay the same!
Keeping your pension secure is our top priority
The Plan’s Governors are committed to delivering benefit security to members, and conditional benefits, including inflation protection, are their top priority. Conditional benefits have been granted until 2026.
Read more about these Plan changes on our website
Read more about CAAT’s valuation on our website
Read CAAT’s Funding Policy
No change if you’re already collecting a pension
If you are retired or a survivor receiving a pension, there will be no change: your pension continues to be paid every month for your life.
These Plan changes are consistent with our Funding Policy, which is built on a foundation of benefit security and equity amongst members. Now that the Plan sits within Funding Level 5, stability contribution rates are being reduced for DBprime members, and DBplus members get an increase in their annual pension factor. This balance helps maintain equity between DBprime and DBplus members.
When the Plan reaches Level 6 of the Funding Policy, the Plan’s Governors will eliminate DBprime stability contribution rates and will consider improvements, such as granting inflation protection increases for pensions on service earned before 1992, reducing DBprime contribution rates further, or further enhancing the DBplus annual pension factor above 9.5%.