Members > FAQ > 60 Months Pension Guarantee

FAQ - 60 Months Pension Guarantee

More About

FAQs

The CAAT Pension Plan in general
Membership
Pensionable Service
The contribution formula and pension calculation
Transferring service
Purchasing service
Termination of employment
Retirement
Early retirement
The Bridge Benefit
Indexation
The 75% Spousal Pension
The 60 Months Pension Guarantee
Survivor benefits

The 60 months pension guarantee

Member Handbook -
60 Months Pension Guarantee
Post-retirement survivor benefits
What if I die after I retire?

Can you explain the guarantee of 60 months of pension payments?

Under the CAAT Plan, when you retire, you will be paid a pension for the rest of your life. After your death, your Spouse will receive 60% of your lifetime pension for the rest of his or her life (unless you chose the 75% option when you retired). After your Spouse's death, if your surviving children are under age 18, they will receive a pension until they reach age 18.

The 60 months pension guarantee is an addition to these provisions. The guarantee is that if, after all these pensions have been paid, the total amount paid is less than 60 months of your original lifetime pension, then the difference will be paid out. It can go to the Beneficiary, if one has been designated, or the estate of the last pension recipient, or to the last child to turn 18 if you have Eligible Children. One month of your "original lifetime pension" is defined as the amount of your first pension payment, not including any Bridge Benefit.

The 60 months pension guarantee does not change any of the existing pension calculations or payments. It is simply a guarantee that the pension payments paid to you and your survivors will total at least 60 times the amount of your first pension payment.

Here's an example:

Member retires - lifetime pension of	$12,000/year
	$1,000/month
Guarantee	60 x $1,000 = $60,000
Member dies after receiving payments of	$44,000
Spouse receives survivor pension of	$7,200/year
	$600/month
Spouse dies after receiving payments of	$12,000
Totals
Member	$44,000
Spouse	$12,000
Total	$56,000
Guarantee	$60,000
Less Payments	$56,000
Payment to Spouse's estate (or beneficiary if one has been designated)	$4,000

February 2005