The CAAT Pension Plan has reached a significant milestone, surpassing 100,000 members. This growth comes just six years after the launch of its DBplus plan in 2018.
Nearly 400 new employers have joined the defined benefit plan in that time, adding more than 50,000 members. It now serves employers across 20 industries, including for-profit, non-profit, and the 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 of 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.”
Perks of DB for workers, contributions similar to DC
The DBplus plan has been a driving force behind this expansion, it said in a press release. It allows employers to offer a defined benefit pension while contributing at a fixed rate, similar to a defined contribution plan.
The resurgence of DB pensions in Canada has been noted in recent studies, including one by Stephen Poloz, former governor of the Bank of Canada. Poloz pointed to the “natural forces in motion that should foster a renaissance of the DB pension plan.”
Origins as a college pension in Ontario
Established in 1967 to support the Ontario college system, CAAT has evolved into an independent, jointly governed plan. Notable milestones include its transition to a jointly sponsored pension plan (JSPP) in 1995, its first non-college employer joining in 1999, and the launch of DBplus in 2018, which won the Innovation in Plan Design and Reform Award from the World Pension Summit.
In 2022, CAAT introduced Contribution Choice for DBplus, offering new flexibility to employers and members with a range of contribution rates. By May 2024, CAAT had welcomed more than 440 employers across Canada into the plan, it said.
As of Jan. 1, 2024, the CAAT Pension Plan was 124% funded on a going-concern basis.