Currently offering a defined benefit (DB) pension plan

If your workplace currently offers a DB plan:

There are two options for joining CAAT, included below. 

1. Outsourced pension management (merging existing DB plan(s) with CAAT)

You will have the option of joining DBplus on a go-forward basis, and pursue an agreement with CAAT subject to regulatory approval to merge the prior DB plan(s) with the Plan. In this case, CAAT would assume responsibility for past liabilities, governance, risk and investment management, and all administration.

Contact us for more information about the process

2. Joint pension management (maintain existing DB plan(s) and join CAAT going forward)

Join DBplus going forward in respect of some or all employee groups and keep the existing DB plan in place, as either a closed plan, to only pay out past benefits, or an open plan if some employee groups will continue to participate in it.

Following approval of the employer’s application, employees would build DBplus pensions from the point they are enrolled and contributions begin. At retirement, termination, or death, members would receive their benefit entitlements from DBplus and from the prior DB plan.

Stages of the joint pension management process:

1. Initial contact

At CAAT, we’ll answer your questions about the plan design and provide guidance on how to join. You only need to consider two options: when to start contributing, and how much you want to pay. If your organization is interested in proceeding to the next step, a non-disclosure agreement is signed and employee data is supplied to CAAT for preliminary analysis.

2. Due diligence

Both your organization and CAAT will perform due diligence activities, including reviewing and documenting the details in a Participation Agreement and New Employer Application. For CAAT, this includes a detailed demographic analysis and risk assessments. Alignment of key stakeholders is confirmed in a Participation Agreement that forms part of the employer’s application to join the Plan. The Participation Agreement is signed following approval by CAAT Plan governors.

3. Support for participation

We will work with you to help inform employees, including holding information sessions and providing website tools and a helpline.

4. Onboarding and collaborative administration

CAAT takes on administration. Employees enrol in DBplus and contributions begin. Employer notifies CAAT of standard HR events such as enrolments, terminations, retirements, leaves. CAAT administers DBplus entitlements such as paying pensions, sending annual pension statements and option documents at termination and retirement. We always help ensure a smooth transition.