What are your options and entitlements?
Understanding your pension
How your contributions are determined
What are your options and entitlements?
The Bridge Benefit
Member FAQ -
Bridge Benefit
Indexation
Member FAQ -
Indexation
Member Handbook -
Pension Indexing
Survivor Benefits
Member FAQ -
Survivor Benefits
The CAAT Plan pension you will receive is more than just a monthly payment. It's composed of several additional benefits that not only protect you, but also your loved ones.
Early Retirement
One of the advantages of membership in the CAAT Pension Plan is the possibility to retire early and receive a pension income for the rest of your life.
If you do not meet the criteria for an unreduced early retirement pension as outlined below, your pension will be reduced. The reduction rate is 3% per year for each year or partial year you are away from either turning 65 or otherwise becoming eligible for an unreduced pension. This reduction factor is meant to compensate for the longer time you are expected to collect your benefit.
Your earliest possible retirement age is 50. With the 50/20 Option, if you are at least 50 years old with at least 20 years of Pensionable Service, you can retire with a reduced pension. You also have the option to retire early with an unreduced pension if you meet the following criteria:
- 85 Factor: Your age plus service equal at least 85
- 60/20 Rule: You are at least 60 years of age with at least 20 years of Pensionable Service.
The Bridge Benefit
From the start of your early retirement until the month in which you turn 65, you will receive a supplemental Bridge Benefit. This benefit approximates the amount of the full Canada Pension Plan pension that you would normally receive if you retired at age 65.
Although your Bridge Benefit will be reduced by the same factor applied to your retirement pension, it will increase yearly due to indexing. You will stop receiving your Bridge Benefit, and any indexation increases applied to it, when you turn 65.
Pension increases due to indexation
Indexation is a form of protection against increases in the cost of living and decreases in the value of the dollar. For detailed information on indexation, consult our Frequently Asked Questions.
Survivor Benefits
Survivor benefits are meant to provide your eligible surviving Spouse or Children with income upon your death. The form of benefit that will be received depends on whether or not you are a Vested Member and if you have a Spouse or eligible Children under the age of 18, who are dependent on you.
Pre-Retirement: If you have less than 2 years of Pensionable Service or Plan membership, you are not Vested and not eligible to collect a pension. If you die during this period, any contributions you have made to the Plan plus interest will be refunded to your Spouse, Beneficiary or estate.
If you are a Vested Member when you die, your Spouse will have the option to collect an immediate pension, a deferred pension, or receive a lump-sum payment equal to the Commuted Value of the pension you have accumulated. If you have no Spouse, your eligible Children will receive a pension equal to 50% of your accumulated pension, paid to their legal Guardian. Your Beneficiary or estate will also receive a lump sum payment equal to the Commuted Value of your pension, minus the Commuted Value of the pension paid to your Children.
If you have neither a Spouse nor eligible Children, your Beneficiary (or your Estate if you have not named a Beneficiary), will receive a lump sum equal to the Commuted Value of the pension you have accumulated. For more informaiton on Pre-retirement Survivor Benefits, consult the pamphlet When an active Plan Member dies.
Post-Retirement: If you die after you have started receiving your pension, your Spouse will be eligible to receive a pension equal to 60% of the pension you were collecting. At your retirement, you will have the option to choose a smaller pension for yourself in order to provide your Spouse with a 75% Spousal pension rather than the standard 60%. This choice must be made when you retire and cannot be reversed, even if your Spouse predeceases you. Upon your Spouse's death, your eligible Children will receive a pension equal to the pension your Spouse was receiving.
If you have eligible Children but no Spouse, they will receive a benefit equal to the pension that your Spouse would have received. Children's pensions are paid to the legal guardian on behalf of your Child until he or she turns 18. In the event that you have more than one eligible Child, the benefit will be divided equally among them. As each Child turns 18 the benefit will be redivided among the remaining Children and will stop when the youngest Child turns 18.
It's important to note that if you had a previous Spouse, a divorce or separation agreement could have an impact on the survivor benefit paid. Contact the CAAT Plan if you have questions about marriage breakdown.
How your contributions are determined
January 2006
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