Pensioners > FAQ > Bridge Benefit

FAQ - Bridge Benefit

What is a Bridge Benefit?

It is an additional benefit available to those who start their pension before age 65. It is paid until the Pensioner turns 65, and recognizes the fact that full Canada Pension Plan benefits do not start until that age. The Bridge Benefit was designed to provide early retirement support until CPP payments begin.

FAQs

The CAAT Pension Plan in general
Retirement
Bridge benefits
Indexation
The 60 Months Guarantee
Survivor benefits

The Bridge Benefit

Pensioner Handbook -
Bridge Benefit

Pensioner FAQ -
Indexation

Member Handbook -
Early Retirement Pension

Member FAQ -
Bridge Benefit

Do you turn 65 this year?

Why does the Bridge Benefit stop at age 65?

When the Bridge Benefit began, CPP payments did not start until age 65 (CPP early retirement benefits were introduced in 1987). Therefore, when you reach age 65, both the Bridge Benefit and any indexation it receives will stop. Your lifetime pension and any indexation it received, will continue.

Can I collect a Bridge Benefit and a CPP pension at the same time?

Yes. You can take your CPP as early as age 60. The CAAT Plan assumes that you will take it at age 65, and you will receive the Bridge Benefit until you turn 65 in any case.

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Is the amount of the Bridge Benefit based on the amount of CPP pension I actually receive?

No, there is no direct connection. The Bridge Benefit calculation is based on the CAAT Plan pension formula. The calculation approximates the amount of the CPP benefit you earned while in the CAAT Plan.

How do you calculate the Bridge Benefit?

The Bridge Benefit is calculated as follows:

0.7%

Highest Average Pensionable Earnings up to the Average YMPE

Pensionable Service from Jan.1, 1966

Will my Spouse's pension be affected by the Bridge Benefit reduction?

The Bridge Benefit is an additional pension payment made to Plan Members who start their pension before reaching age 65. It recognizes the fact that full Canada Pension Plan benefits do not start until that age, and provides some early retirement support. As a result, the Bridge Benefit and any indexation it receives are paid to individuals only until they reach age 65. When a Pensioner dies, the Bridge Benefit is not considered in the calculation of the Spouse's pension. In addition, the Bridge Benefit is not available to Spouses who start collecting a pension before age 65. Therefore the Spouse's pension is not reduced when the Spouse turns 65.

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December 2006