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CAAT Pension Plan Members from Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies

Merger Update

October 22, 2020

Asset transfer approved

On October 8, 2020, the Ontario pension regulator, the Financial Services Regulatory Authority of Ontario (FSRA), provided consent to transfer the assets from The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies (Registration Number: 0238279) to the CAAT Pension Plan.

Once all assets have been transferred, the CAAT Pension Plan will assume responsibility for all defined benefit pension payments to members of The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies.

The assets, totalling almost $35 million, will be transferred to the CAAT Pension Plan in November 2020. Members of The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies can expect to receive a communication with further details about their pension in the coming weeks.

How we got here

On December 29, 2019, an overwhelming 95% of members of The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies voted in favour of merging with the CAAT Pension Plan. Members of all areas of The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies – its defined benefit (DB), defined contribution (DC), and group retirement saving (GRSP) components – started contributing to, and earning, a pension under CAAT’s DBplus plan design effective January 1, 2020.

On September 18, 2020, FSRA advised that it would change how it would communicate its consent to the asset transfer (commonly referred to as “mergers”) with respect to The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies.

Given the extensive notice provided to date regarding the proposed asset transfers with respect to the pension plan listed above, and the delays related to the COVID pandemic, FSRA advised that it would not issue a NOID prior to issuing its consent regarding the merger of this plan.

Because this change was made while the applications were being considered for The Pension Plan for Employees of Catholic Charities of the Archdiocese of Toronto and Participating Member Agencies, those affected by the proposed merger had 10 business days (or until October 1, 2020), to make written submissions with respect to FSRA’s proposed consent to the asset transfers.

What is my DBplus contribution rate?

Employees hired on or after January 1, 2020 will contribute to DBplus at the rate of contribution in effect at the time of hire.

Employees previously participating in the defined benefit (DB) plans will start contributing to DBplus at 5.0% with a 0.5% annual increase until January 1, 2024. Thereafter, contribution rates will be fixed at 7.0% of earnings. The employer contribution rate is 7.0% from the start and your pension benefit will be calculated (deemed) as if both employee and employer contributed 7.0% of earnings in each year as follows:

Effective date Employee contribution rates Employer contribution rates Total (deemed) contributions
January 1, 2020 5.0% 7.0% 14.0%
January 1, 2021 5.5% 7.0% 14.0%
January 1, 2022 6.0% 7.0% 14.0%
January 1, 2023 6.5% 7.0% 14.0%
January 1, 2024 and onwards 7.0% 7.0% 14.0%

 

Employees previously participating in the defined contribution and Group RSP plans at a rate higher than indicated will start contributing to DBplus at their current rate until they meet the next threshold rate and ‘phase-in’ as follows (annually these pensions will be calculated based on the total contributions):

Agency: Catholic Crosscultural Services

Effective date Employee contribution rates Employer contribution rates Total (deemed) contributions
January 1, 2020 1.0% 5.0% 6.0%
January 1, 2021 2.0% 5.0% 7.0%
January 1, 2022 3.0% 5.0% 8.0%
January 1, 2023 4.0% 5.0% 9.0%
January 1, 2024 and onwards 5.0% 5.0% 10.0%

Agency: Mary Centre of the Archdiocese of Toronto

Effective date Employee contribution rates Employer contribution rates Total (deemed) contributions
January 1, 2020 1.0% 3.0% 4.0%
January 1, 2021 2.0% 3.5% 5.5%
January 1, 2022 3.0% 4.0% 7.0%
January 1, 2023 4.0% 4.5% 8.5%
January 1, 2024 and onwards 5.0% 5.0% 10.0%

Agency: Rose of Durham

Effective date Employee contribution rates Employer contribution rates Total (deemed) contributions
January 1, 2020 4.0% 4.0% 8.0%
January 1, 2021 4.0% 4.0% 8.0%
January 1, 2022 4.0% 4.0% 8.0%
January 1, 2023 4.5% 4.5% 9.0%
January 1, 2024 and onwards 5.0% 5.0% 10.0%

All other Agencies

Effective date Employee contribution rates Employer contribution rates Total (deemed) contributions
January 1, 2020 4.0% 7.0% 11.0%
January 1, 2021 5.0% 7.0% 12.0%
January 1, 2022 6.0% 7.0% 13.0%
January 1, 2023 and onwards 7.0% 7.0% 14.0%

Who do I contact if I have questions about my pension?

Catholic Charities member services at the CAAT Pension Plan
Toll Free: 1.855.369.9479

Details about your new CAAT pension

If you have prior pension benefits from Catholic Charities your total annual pension will be the sum of two parts:

Catholic Charities pension + DBplus pension = Total annual pension payable from the CAAT Pension Plan

  • Your Catholic Charities pension is the DB pension you have earned up to December 31, 2019, which will be replicated and payable from the CAAT Pension Plan, once assets are transferred.
  • Your DBplus pension is the pension you are earning under the DBplus plan design as of January 1, 2020.

Restoration of benefits for periods of service between January 1, 2013 and December 31, 2019 will be provided after regulatory approval is received for the merger and the assets are transferred from Catholic Charities to the CAAT pension plan. If eligible, restored benefits would become payable to you in retirement as part of your total pension. Under the same terms as the CCAT Pension Plan.

Enhancements

Inflation protection in retirement

Inflation protection increases are made when the CAAT Pension Plan is over 100% funded to pensions in pay. This is called conditional inflation protection. Such annual increases are 75% of the annual percentage increase in the Consumer Price Index (CPI) and capped at 8% with a carry forward provision (i.e., in years when inflation is high, any amount above 8% would be carried forward and applied to inflation protection in the following years). Increases are effective on January 1st of each year beginning in 2021, for the pension benefits you earn under DBplus, once you start your pension.

Your total pension, including the benefit you earned under the Catholic Charities defined benefit plan, will receive conditional inflation protection increases. These increases start the year after you start collecting your pension, but not before January 1, 2021.

Other enhancements while you're working

Starting January 2021 your DBplus pension receives enhancements based on the Average Industrial Wage. These enhancements are applied at the start of each year you contribute to the Plan (subject to the CAAT Pension Plan Funding Policy). In addition, guaranteed enhancements of 2.25% will also be applied to the CCAT portion of your pension every year as long as you work, and subject to the provisions of the Income Tax Act (Canada).

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Questions? Contact Us

The CAAT Plan's member services team are available to answer any questions you may have.