Upgrading retirement benefits can boost talent and attraction

Is your organization attractive? According to recent studies, maybe not. Employees are increasingly demanding more, and better – and pensions are top of the list.

84% of Canadians say a retirement plan is a critical company benefit.

Attracting and retaining talent is an issue that requires many companies to re-evaluate their retirement benefits options – employees want access to a pension and will favour employers who offer them. In fact, 84% of Canadians say a retirement plan is a critical company benefit and 79% of Canadians say they are likely or very likely to change jobs for a better pension.

79% of Canadians say they are likely or very likely to change jobs for a better pension.

A new league for employers

Organizations like The Conference Board of Canada are staying ahead in the race for talent after switching from a group RRSP to CAAT Pension Plan.

The Conference Board of Canada wanted to put itself into a “different league” when competing for talent by transitioning its existing arrangements to a defined benefit pension plan that offers lifetime retirement income.

The Board’s employees, composed of approximately 150 part-time and contract workers, were in a group RRSP and Tax-Free Savings Account (TFSA) program. The Conference Board of Canada wanted to put itself into a “different league” when competing for talent by transitioning its existing arrangements to a defined benefit pension plan that offers lifetime retirement income.

The CAAT Advantage

• CAAT is a modern DB pension plan that provides employees with retirement security for life. At the same time, compared to traditional DB plans, it relieves the employer of the unpredictable cost of pension deficits, and it removes pensions as a liability on financial statements.
• By joining CAAT, employees are able to keep the group RRSP assets they accumulated in the previous plan, but are given the option of using them to purchase additional pension in the CAAT Pension Plan.
• Joining with a large plan like CAAT also provides employees with comfort that their pensions will be there in retirement, regardless of stock market volatility.
• The employer has predictable and stable pension contributions so that it is better able to assess its finances well into the future.
• Employees and employers alike appreciate the cost effectiveness and cost certainty that come with participation in larger pooled vehicles to take advantage of economies of scale for administration and investment costs while mitigating longevity risk.

“I am tremendously excited for our organization to join the CAAT Pension Plan through DBplus. This is a game changer for The Conference Board of Canada, as this modern defined benefit plan is a competitive differentiator that puts us in a different league as an employer. We know from our research that Canadians don’t save enough for retirement, and that professional pension management yields big benefits. As part of our commitment to invest in our talent, it made sense to transition to a new retirement plan that better supports the long-term financial security of our employees.”

- Dr. Susan Black, CEO, The Conference Board of Canada

Curious about DBplus?

DBplus is a plan design by the CAAT Pension Plan that is open to employers of all sizes, sectors, and industries across Canada. Like The Conference Board of Canada, employers participate because it is cost effective, secure, and highly attractive to employees across the country.

In addition to providing employees with a secure lifetime retirement plan, DBplus was a key part of The Board's post-pandemic workforce strategy. When transitioning to a virtual first organization, introducing DBplus helped recruit top talent across Canada and retain existing employees. Learn more about how DBplus supported a major workforce transition in our Contributors podcast episode with The Conference Board of Canada CEO, Susan Black.

- Dr. Susan Black, CEO, The Conference Board of Canada

To learn more about how CAAT’s DBplus plan design can meet the needs of your organization, visit our Pension Solutions Page or contact us at [email protected].