What's the difference between defined contribution (DC) and defined benefit pension plans?

Applicable to members hired on or after September 20, 2016

The current DC plan is a savings plan that does not provide a guaranteed retirement income. The amount that you receive fluctuates, depending on how well the investments have done.

The new CAAT DBplus plan is a significant improvement for members’ retirement security, that includes predictable monthly pension payments for workers, and surviving spouses, for life.

The CAAT Pension Plan is non-profit, so all profits are returned into the plan to benefit members. For as long as you live, you can be sure that your pension benefit will arrive every month and receive the following benefits:

  • Conditional inflation protection enhancements
  • Subsidized early retirement starting at age 50
  • No-cost survivor benefits
  • 60% survivor pension