Upgrading from a defined contribution (DC) pension plan
If your workplace currently offers a DC plan, the transition to DBplus – to offer employees a valuable and secure defined benefit pension, for a fixed contribution rate – is seamless and efficient.
The process to join can take as little as a few months. Following approval of the employer’s application, employees begin to build valuable lifetime pensions from the point contributions begin. They also have the individual option to purchase additional pension in DBplus using their funds in the DC plan.
1. Contact us for information
CAAT answers your questions about the plan design and easy steps to joining. 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 non-identifying employee data is supplied to CAAT for preliminary analysis.
2. Document the details
Review and document the details in a Participation Agreement and New Employer Application, subject to due diligence activities. 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.
3. Confirm support for participation
CAAT can help inform employees, including holding information sessions and providing website tools and a helpline.
4. Onboarding and administration
CAAT takes on administration. Employees enrol, contributions begin, and pension purchase information sessions are held with employees. We work with you to ensure a smooth transition.
5. Wind up DC plan
If necessary, employer works with DC pension plan provider to wind up the DC plan and assists member balance transfers to CAAT.
See the process at a glance
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