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FAQ - Bridge Benefit

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 Bridge Benefit

Member Handbook -
Early Retirement Pension
Calculating your reduced pension

What are your options and entitlements?

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.

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 its indexation 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.

If I retire at age 54, will I receive the Bridge Benefit then or will I have to wait until age 60, the earliest age I can start my CPP?

The Bridge Benefit will start whenever you start early retirement - in your case, at age 54 - and will be paid up to age 65 even if you start your CPP before that age.

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

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Does the Bridge Benefit calculation include all the years I contributed to CPP or only my years of Pensionable Service in the CAAT Plan?

The Bridge Benefit calculation uses only your Pensionable Service in the CAAT Plan after January 1, 1966, which is when CPP started.

If I retire before age 65 with a reduced pension and a Bridge Benefit, will the Bridge Benefit also be reduced?

Yes. The early retirement reduction is applied to both the lifetime pension and the Bridge Benefit.

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January 2006