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DBplus offers valuable features, such as predictable, lifetime income in retirement, inflation protection and survivor benefits. It pools risks and it is more efficient than traditional single employer DB plans and delivers substantially more pension than DC arrangements can for the average member. Further, members don’t take on risks they can’t effectively manage, such as longevity and market volatility, and timing.

DBplus is easy to administer, but still provides substantial value. DBplus has a fixed contribution rate which provides cost and accounting certainty for employers, and removes key risks for employers interested in offering DB pensions, which Canadians strongly prefer.

What are the advantages for members?

Its features include what Canadians have said they want in a workplace pension – lifetime pension, survivor benefits and inflation protection.

 

Secure defined benefits members can count on

DBplus members can rely on a lifetime pension based on earnings that removes the need to worry about complex investments, market downturns, or outliving their savings.

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Survivor benefits

A lifetime pension is payable to the member’s surviving spouse, even if the member marries after retirement. In a case of death before retirement, more options are available.

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Inflation adjustments

The impact of inflation is offset through the Plan’s conditional inflation protection of 75% of the year-over-year increase in the Consumer Price Index.

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Pension accrual increases with wages

Conditional wage enhancements reflect general wage increases (AIW) and the time value of money.

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Portability

A member’s pension is seamlessly portable among the 41 participating employers and highly portable with other plans.

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Purchase past service

Members have the option to purchase eligible pension service or transfer pensions from any registered pension plan in Canada and consolidate a bigger DB pension.

How does DBplus Work?

Learn about how DBplus member’s contributions work to provide a secure lifetime pension and other valuable benefits.

Finally, a modern pension plan for Canadians. DBplus pension design is unique and one which is long overdue. DBplus will become a leader in the pension industry in Canada and Canadians will have better retirements because of this innovation.

Ronald A. Pink, Q.C., A founding and managing partner of Pink Larkin, specializing in pension and benefits law
Computer monitor displaying the DBplus value tool.

Try the DBplus Value Tool

This simple tool estimates the value of a pension in DBplus by the CAAT Pension Plan. With just a few pieces of information, get an estimate of future contributions in DBplus and immediately see how they result in a valuable lifetime retirement income.

How does DBplus work?

Members participating in DBplus earn a guaranteed base lifetime pension. Depending on the funding level, benefit enhancements are made to reflect wage growth, inflation, and early retirement factors. The better the funding status of the Plan the more enhancements are made. The Plan uses reserves and its Funding Policy to keep benefits secure.

Excellent value for members

Members participating in DBplus would earn a guaranteed lifetime pension, equal to the total contributions made (member plus matching employer contributions), multiplied by an Annual Pension Factor of 8.5% during each year of participation. This pension factor reflects the goal of enabling retiring members participating in DBplus to receive about 800% return on their contributions in pension payments

From earning benefits to a lifetime pension

Features of DBplus by the CAAT Plan include a secure lifetime pension, survivor benefits, and inflation protection. It’s easy to administer and provides similar value to the current Plan design: on average, members collect pensions equal to 800% of contributions made during their careers.

Graph showing pension accrual for average member retiring at age 65, and pension payments starting at age 65,  including inflation protection and survivor benefit enhancements.

I am thrilled by this new pension system designed and administered by CAAT. I have been promoting exactly this type of plan for the past decade in my academic research and writing. And now it is here. And with one of the most respected plan administrators in Canada, CAAT. Congratulations! I hope you are overwhelmed with the success of this wonderful venture.

Robert L. Brown, PhD, FCIA, FSA ACAS FIA (Hons) Retired Professor of Actuarial Science and Director of the Institute of Insurance and Pension Research
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Interested in learning more?

If you represent an interested employer or member group and would like to speak to us, contact the CAAT Pension Plan directly.