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CAAT Pension Plan Members from United Way of Greater Toronto

Merger Update

The merger of the prior defined benefit plans of the United Way of Greater Toronto with the CAAT Pension Plan is regulated by legislation and is a two-step process.

The first step is complete

On November 12, 2019, an overwhelming 99% of the United Way of Greater Toronto plan members voted in favour of merging with the CAAT Pension Plan. Members of the United Way of Greater Toronto’s employee pension plans – its defined benefit (DB) and defined contribution (DC) components – started contributing to, and earning, a pension under CAAT’s DBplus plan design effective January 1, 2020.

The second step is in progress

The Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (“FSRA”) must approve the transfer of the DB pension plan assets and liabilities. An application will be filed with FSRA in the coming months. Once approved by FSRA, United Way of Greater Toronto plan members will be notified that their past pension benefits will be transferred to and replicated in the CAAT Pension Plan.

What is my DBplus contribution rate?

Employees hired on or after January 1, 2020 will contribute to DBplus at 6.0%, matched dollar for dollar by United Way of Greater Toronto (UWGT).

Employees hired prior to January 1, 2020 will start contributing in each year as follows:

Effective date Employee contribution rate Employer contribution rate Total (deemed) contributions
January 1 2020 – December 31, 2020 4.0% 8.0% 12.0%
January 1, 2021 – December 31, 2021 5.0% 7.0% 12.0%
January 1, 2022 and thereafter 6.0% 6.0% 12.0%

Who do I contact if I have questions about my pension benefits or need to change my personal information?

UWGT member services at the CAAT Pension Plan c/o Mercer
Phone: 416.586.6142
Toll Free: 1.888.441.4066

Details about your new CAAT pension

If you have prior pension benefits from United Way Greater Toronto, your total annual pension will be the sum of two parts:

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

  • Your UWGT 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.


Inflation protection

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.

Any benefit earned under the UWGT plan will the greater of: CAAT’s conditional inflation protection which is subject to the CAAT Funding Policy and is equal to 75% of the Consumer Price Index (CPI) and the UWGT Plan indexation provision of 75% of CPI minus 1%, with a maximum CPI of 8%. This will be assessed annually from January 1, 2021 onwards, so that you will get the better of the two indexation formulas on a cumulative basis once you start your pension.

Average industrial Wage (AIW)

Starting January 2021 AIW enhancements are applied at the start of each year you contribute to the Plan and are subject to the CAAT Pension Plan Funding Policy. At the same time guaranteed AIW enhancements will also be applied to the United Way portion of your pension.

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Questions? Contact Us

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