This brief is intended to provide a short introduction of the Government of Nova Scotia’s pension plan for early childhood educators (ECEs) and child care staff working in the early learning and child care sector (ELCC). It does not provide details on comprehensive health benefits like medical or dental benefits.
Downloadable Version
This brief is available for download in PDF format.
When signing the Canada-Wide Early Learning and Child Care (CWELCC) Agreement with the federal government, the Government of Nova Scotia committed to developing a province-wide pensions and benefits plan.
Prior to the sector-wide pension plan, 22% of the licensed child care sector participated in a retirement savings arrangement – these were mostly target benefits or RRSPs.
Consultation over the type of retirement savings and health benefits plan were held with the sector in 2023. Options for retirement savings included: joining an existing plan, setting up an ELCC- specific plan and transferring contributions to operators to purchase their own plans.
In December 2023, it was announced that employees of licensed child care centres would join an existing plan: the CAAT DBplus plan.
Licensed family home child care providers will receive grant funding to purchase their own health benefits and support their contributions to a Registered Retirement Savings Plan.
Pension Plan Details
- Employees working in licensed early learning and child care programs will be enrolled in the Colleges of Applied Arts and Technology’s DBplus pension plan, a defined benefit pension plan.
- The pension benefits will be funded through matching employee and employer contributions.
- Employees will contribute 5% of their wages to the pension plan; however, the loss in take-home pay will be compensated for certified ECEsEarly Childhood Educators through a wage increase of approximately 15%, starting in April 2024.
- Other support staff (cooks, administrators,etc) have their rates of pay determined at the centre level and will not be receiving wage grid increases to offset their pension and benefit contributions
- Enrollment will take place on a rolling basis between May 2024 to December 2024, with all employees receiving a one-time retroactive employer pension contribution to January 1, 2024, regardless of when they enroll.
Eligibility
- ECEs and support staff employed by a licensed and provincially funded child care centre or family home child care agency will be enrolled in the pension plan.
- Employees must be hired on either a permanent basis or a temporary basis for 12 months or more.
- Employees must work at least 14 hours per week per their employment contract (40% of a regular work week).
- The entirety of the individual’s employment (all hours as part of the employment contract) must be dedicated to the delivery of child care at that organization (in or out of ratio). This includes Directors/Assistant directors, ECEs, untrained staff, cooks, inclusion supports, and administrators.
What is the CAAT DBPlus Plan?
Nova Scotia child care employees are joining the existing CAAT pension plan, which was first developed to support the Ontario college system, and is now open to employers across Canada.
CAAT is a jointly sponsored pension plan, meaning members and employers are represented on the pension plan’s governing bodies.
What do we mean by defined benefit pension plan?
- A defined benefit pension plan defines the amount of pension an employee will receive in retirement. This is calculated using a formula that includes age, earnings, and length of employment.
- Both employers and employees put funds into the plan.
- The employer invests the money and is responsible for making sure there’s enough money in the plan to pay pensions in the future. If not, the employer must cover the difference.
- Financial decisions regarding the funds are managed by pension plans, not by individual employees.
Estimated Range of Contributions by ECE Classification (Bi-weekly)
ECE Classification | Range of Contributions (Bi-weekly) |
Level 1 | $80 – $90 |
Level 2 | $86 – $97 |
Level 3 | $89 – $101 |
Amounts above are approximate, based on a 35-hour work week, and shown for illustrative purposes only. Employee costs will vary based on total pay and desired coverage. | Source: Employee Information Call Group Benefits & Pension Plan |
Pension amount examples
Sample Member | Age | Earnings (annual) | DBpls Pension at age 65 (annual) |
Member A | 35 | $59,862 | $42,000 |
Member B | 35 | $50,000 | $35,000 |
Member C | 35 | $40,000 | $28,000 |
Source: Your DBplus Information Package
Analysis
The Nova Scotia DBplus pension plan is an important step forward for the child care workforce in Nova Scotia, and the first defined benefit pension plan to be funded under the Canada-wide agreements.
ECEs received wage increases to offset their pension contributions helping them finance the cost of joining a pension plan.
The pension benefit on retirement will unfortunately be low because wages of staff in the early learning and child care sector continue to be low.
The Government of Nova Scotia does not have plans to include support staff in the provincial wage grid but is considering changes to support staff wages as part of an operational funding model review.
Information about the Government of Nova Scotia’s pensions and benefits plan for the ELCC sector.
For types of employer pensions plans in Canada and their use in the ELCC sector, see the Policy Brief: Employer Pension Plans in Canada’s Early Learning and Child Care Sector