Value for members

CAAT Pension Plan members receive high value for their contributions. In fact, 91% of members surveyed in 2015 rated the value of the pension benefit they will receive for their contributions as excellent, good, or reasonably good value.

In addition to early retirement options, inflation protection and survivor benefits, the average retired member can expect to receive 800% back in pension contributions during their retirement. Sound too good to be true? Just ask Patrick.


Who pays for your pension?

For each dollar of pension paid, over 75 cents comes from investment income, while member and employer contributions, paid equally, account for the remaining 25 cents.

Along with inflation protection and survivor benefits, the secure lifetime pension members of the CAAT Plan earn make it a cost-effective and valuable benefit.

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What does value look like for the average retired member?

Patrick is an average CAAT Plan retired member. He retired early, at age 62, with 22 years of service, and had highest average earnings of just over $83,000. During his membership in the Plan, Patrick contributed a substantial amount of about $122,000 – more than the average Canadian has saved in their RRSP – and his employer contributed a matching amount.

Patrick collects an annual pension of just over $31,500, paid in monthly instalments on the first of every month. Because he retired early (before age 65), he also receives a temporary bridge benefit of $8,300 per year, which is paid until he turns 65.

Although the average Canadian lives into their early 80s, the average CAAT Plan member lives to age 90. This means Patrick is expected to spend 28 years in retirement, and will receive over 330 monthly pension payments.

What does this mean for Patrick?

By the time Patrick has been retired for 5 years, he will have already received more in pension payments than the total amount he contributed.

Patrick’s pension will continue to be paid as long as he lives. By the time he reaches age 90, he will have received $877,000 in pension payments – approximately 800% of the contributions he made to the Plan.

Patrick believes that receiving 8 times his pension contributions back in pension payments is valuable, but this amount does not include inflation protection increases, which may be applied each year, and will become permanent parts of the pension. In addition, when Patrick dies, his eligible surviving spouse will receive a survivor pension of 60% of Patrick’s pension at the time of his death, for the rest of his or her life.

Patrick sees the value in belonging to a Defined Benefit pension plan.