Member Handbook 2011
An investment in your future
The CAAT Pension Plan is a jointly-sponsored, multi-employer pension plan providing retirement security to the full-time and participating part-time, active and retired employees of Ontario’s college system.
Our main purpose is to pay a predictable stream of pension payments to retired members and their surviving spouses.
To that end, the Plan manages a pool of assets which is funded by contributions from members, matching contributions from employers and the investment earnings on those contributions.
Getting to know your Plan
Members and employers jointly govern the Plan
The CAAT Pension Plan is governed with equal representation from members and employers. As sponsors, Colleges Ontario, OPSEU (the Ontario Public Service Employees Union) and OCASA (the Ontario College Administrative Staff Association) appoint representatives to the Sponsors’ Committee and Board of Trustees.
A defined benefit lifetime pension
As a CAAT Pension Plan member, you can rely on a pension based on your earnings and service. This defined benefit formula means you don’t have to worry about complex investments, market volatility, or outliving your pension.
Your pension is based on your best five years of earnings
The pension formula uses your best five years (60 consecutive months) of pensionable earnings, regardless of when they occur in your Ontario college career. You’ll receive the best possible pension, whether you scale back or take on more responsibility in later years.
Flexible retirement options
Choose from a variety of retirement dates to meet your individual needs. All members can retire as early as age 55 with as few as 2 years of service, while members with over 20 years of service can retire at the age of 50. And, although 65 is the “normal retirement age”, members can work and earn benefits in the Plan up to the age of 71, which is, by law, the age when they must start collecting a pension, even if they continue to work.
Survivor benefits to protect your loved ones
If you die before you retire, the value of the pension you accumulated will go to your spouse or beneficiaries. If you die in retirement, your eligible spouse will receive a pension for his or her life. Under some circumstances, your children and beneficiaries may also receive survivor benefits.
Inflation protection increases the value of your pension
The impact of inflation is partially offset through the Plan’s inflation protection, ensuring pensions retain purchasing power over time.
A tax-effective way to save for retirement
Your contributions to the Plan are tax-deductible, and the matching contributions from your employer are not a taxable benefit.
Funding for your future
The CAAT Pension Plan’s Funding Policy highlights the long-term focus of protecting promised pension benefits. The Plan undergoes regular actuarial valuations to measure its financial health and the Funding Policy lays out possible means of dealing with funding deficits and surpluses. The Funding Policy can be viewed on the CAAT Pension Plan website.
This Handbook explains the provisions of the CAAT Pension Plan as of August, 2011
A detailed legal description of the provisions of the Plan can be found in the Plan Text, which can be accessed at your College’s Human Resources department or downloaded from our website. Should the information in this Handbook, our website or any other source differ from the Plan Text, the Plan Text will govern.
