New! Defined Benefit Pension Plan for Law Firms

Group of business people

The Canadian Bar Insurance Association’s (“Lawyers Financial”) mandate is to serve the financial needs of Canada’s legal community by providing high-quality investment and insurance solutions
at very competitive pricing. 

As a not-for-profit organization, our focus is on satisfied clients, not dollars. 

When it comes to pensions, Statistics Canada data from December 2018 shows the following:

  • Canada’s total workforce with pension coverage: 47% 
  • Private sector employees with a pension: 23%

Of the 23% in the private sector, the vast majority are union members who historically have negotiated defined benefit plans in their collective agreements. Many of the rest have defined contribution plans.

For the legal community, the numbers are even bleaker. And that is no surprise. It is simply unrealistic to expect individual law firms, regardless of their size, to assume the financial, demographic, fiduciary and administrative risks associated with defined benefit plans. In fact, most law firms have no pension arrangement at all — Defined Contribution or Defined Benefit.

But, that’s about to change… 

In 2016, a Lawyers Financial task force, comprised of leading pension and actuarial experts, began investigating pension options. After two years of research and consultations, the resulting  decision was for Lawyers Financial to work with the CAAT Pension Plan, to provide predictable and sustainable lifetime income for Canada’s legal community through a defined benefit pension plan — DBplus.

DBplus eliminates the funding risk for employers and creates a reliable retirement pension income for lawyers and staff. Everyone benefits. 

For employers

  • A compelling attraction and retention tool. 
  • Reduced costs, risks and administration. 
  • Eliminates compliance and fiduciary risks of administering a pension.

For employees 

  • Earn predictable and secure pension benefits payable for life. 
  • Reduced stress — no complex investment decisions. 
  • Consolidate existing registered funds into DBplus.

The Bottom Line 

DBplus will provide a guaranteed retirement income that is paid monthly for life. On average, a member who participates over their entire career in DBplus is expected to receive approximately $8 in pension benefits for each $1 they contribute. DBplus is expected to launch for the legal community on July 1, 2020.

Learn more



CAAT Pension Plan is a trademark of Colleges of Applied Arts and Technology Pension Plan.

February 13, 2020