Administrators > Administration Manual > Section 11 Early Retirement > Early Retirement - 60/20 Rule

Early Retirement of Active Member with 60/20 Rule

Forms Checklist

Retirement Option Document

TRD Pension Claim (pdf) (Word)

Retirement Advance Election (pdf) (Word)

TD1 (Federal and Provincial)

Collecting an unreduced pension

Supporting Documents:

Void cheque

Proof of Age of Member and Spouse (if requested)

Definition / Eligibility:

A Member who retires between age 60 and 65 who has at least 20 years of Pensionable Service (60/20 Rule) is eligible for an unreduced Early Retirement Pension.

College Responsibilities:

Tell the Member that an indexed Bridge Benefit will be added to the lifetime pension until he or she turns 65. Tell Member that when he or she turns 65, the indexed Bridge Benefit stops.
Send the CAAT Pension Plan a completed and signed TRD Pension Claim. If the Member has a Spouse, ensure that Section F, "Marital Status " is completed.
If the Member has no Spouse, he or she can choose to complete and sign the Retirement Advance Election form.
Confirm the information on the Retirement Option Document received from the Plan, and forward it to the Member for completion.
If the Member has a Spouse, the Member can choose a reduced pension now so that the survivor pension can be increased from 60% to 75% of the lifetime pension. Both pension amounts are outlined on the Retirement Option Document. If selected, this choice is irrevocable.
If the Member has no Spouse, he or she can designate a Beneficiary in lieu of their estate to receive the balance of any payments owing under the 60 Months Pension Guarantee. This can be done on the Retirement Option Document.

CAAT Pension Plan Responsibilities:

Upon receipt of the TRD Pension Claim, calculate Member's lifetime pension plus Bridge Benefit.
Send a Retirement Option Document to the College.
Process payment and send a letter informing the Member that the first payment has been made.

Member Responsibilities:

Members can get pension estimates from an interactive page on the Plan's website, from the College, or directly from the CAAT Pension Plan. Estimates from the Plan are limited to one per year, with a maximum of three different retirement scenarios, and are available only to Members who are within 5 years of retirement.
Review sections B and C of the TRD Pension Claim for accuracy. Complete and sign the TRD Pension Claim and return it to the College.
Members who don't have a Spouse can choose to complete the Retirement Advance Election form.
Upon receipt of the Retirement Option Document, and TD1s, complete, sign and return them with supporting documents to the Plan.
The Plan may require proof of age from the Member and Spouse.

Plan Text Reference: 7.01, 7.02, 7.03, 9.02, 9.03, 9.07

May 2009