Active members - formerly ROM Pension Plan members

As a member of the CAAT Pension Plan, you are earning a secure pension, payable for the rest of your life. If you were a member of the ROM Pension Plan on December 31, 2015, the pension you earned up to December 31, 2015 under the ROM Pension Plan was transferred to and will be paid from the CAAT Pension Plan. When you retire, your pension will be a combination of the benefit you earned under the ROM Pension Plan, and the benefit you earned as a member of the CAAT Pension Plan.

This illustration shows at a high level how your benefit is determined. For more detail on specific provisions, read below.

Questions?

Contact the CAAT Pension Plan:

Email: rom@caatpension.on.ca

Phone: 416-673-4801 / 1-866-350-2228.

Your Contributions

The CAAT Pension Plan costs are shared 50/50 between the members and the employers in the CAAT Pension Plan. This means that every dollar a member is required to contribute, is matched 100% by their employer. For ROM Plan members, there is a contribution phase-in in effect through to December 31, 2018. After that, ROM members will contribute at the same rate as all other CAAT Plan members. See below for more details.

Learn more about contributions you pay

The contribution rates for ROM Pension Plan members will be phased-in through to December 31, 2018. Starting January 1, 2019, when the phase-in period has ended, ROM Pension Plan members will contribute at the same rate as all other CAAT Pension Plan members. CAAT Pension Plan members contribute a percentage of their earnings to the plan, and these contributions are 100% matched by the employer. The ROM employer contributions during the member phase-in period will be as if ROM Pension Plan members were contributing at the same rate as all other CAAT Pension Plan members.

Effective Date

ROM Member Contributions

ROM / ROM Governors Employer Contributions

Earnings below YMPE

Earnings above YMPE

Earnings below YMPE

Earnings above YMPE

January 1, 2016

7.3%

10.5%

11.2%

14.8%

January 1, 2017

8.6%

12.2%

11.2%

14.8%

January 1, 2018

9.9%

13.5%

11.2%

14.8%

January 1, 2019

11.2%

14.8%

11.2%

14.8%

 

CAAT Plan member contributions:

On earnings up to the YMPE:

8.2% basic  + 3% temporary*** stability contributions = 11.2%

On earnings above the YMPE:

11.8% basic + 3% temporary*** stability contributions = 14.8%

 

Employer contributions: Matches 100% of member contributions.

 

* Contributions rates for ROM/ROM Governors are determined as if ROM Members were contributing to the Plan at the same rate as other members of the CAAT Plan, as may be amended from time to time.

** ROM Members starting on January 1, 2019 will pay at the same rates applicable to other CAAT Plan members – the rates shown here are based on the contribution rates in effect as of January 1, 2016.

***Temporary stability contributions are determined in accordance with the CAAT Pension Plan’s Funding Policy.

 

YMPE –Year’s Maximum Pensionable Earnings. Set each year by Canada Revenue Agency (CRA), the maximum earnings on which Canadians contribute to the Canada Pension Plan (CPP).

Your pension calculation

Your pension will be a combination of the pension benefits earned in the ROM Pension Plan and the CAAT Pension Plan. Benefits earned in the ROM Pension Plan, in accordance with its benefit formula, up to December 31, 2015, have been transferred to and will be paid from the CAAT Pension Plan, and you’ll earn a pension in accordance with CAAT Pension Plan terms for any pensionable service on and after January 1, 2016.

Learn about your pension calculation

Calculating the portion of your pension earned in ROM Pension Plan

Your pension earned in the ROM Pension Plan up to December 31, 2015 has been transferred to the CAAT Pension Plan, and will be adjusted to reflect any higher pensionable earnings under the CAAT Pension Plan. This means that for pensionable service you had in the ROM Pension Plan (up to December 31, 2015), your pension will still be calculated using the ROM Pension Plan formula including the ROM Pension Plan early retirement provisions. 

 

Calculating the portion of your pension earned in CAAT Pension Plan

For pensionable service you earn in the CAAT Pension Plan (starting on and after January 1, 2016), your pension will be calculated using the CAAT Pension Plan formula and CAAT Pension Plan early retirement provisions. All of your combined pensionable service under both plans will be used to determine your eligibility under the CAAT Pension Plan early retirement provisions (which are based on age and pensionable service).

If you decide to start your pension after you are eligible for an unreduced pension under the CAAT Pension Plan but before age 65, your pension earned in the CAAT Pension Plan (after January 1, 2016) will be unreduced but your pension earned in the ROM Pension Plan (up to January 1, 2016) will be reduced by the ROM Pension Plan reduction factors.

The CAAT Pension Plan does not have a service cap. This means that that if you had stopped earning benefits under the ROM Pension Plan as a result of having reached 35 years of pensionable service, you will have started contributing to, and earning benefits under, the CAAT Pension Plan as of January 1, 2016.

Pension Formula under the ROM Pension Plan

Pensionable service after December 31, 1989 *

1.3% of BAE up to AYMPE x pensionable service

plus

2% of BAE above AYMPE x pensionable service

Pensionable service before January 1, 1990 *

1.0% x BAE up to AYMPE x pensionable service

plus

2.0% of BAE above AYMPE x pensionable service

* Total pensionable service is capped at 35 years, as of   January 1, 2010.

 

Pension Formula under the CAAT Pension Plan

Pensionable service in the CAAT Pension Plan **

1.3% x HAPE up to AYMPE x pensionable service

plus

2% x HAPE above AYMPE x pensionable service

 

** There is no cap on pensionable service

 

On and after January 1, 2016, the pension you earned under the ROM Pension Plan will continue to be calculated using the ROM Pension Plan formula, your Highest Average Pensionable Earnings determined based on the CAAT Pension Plan provisions (which cannot be less than the Best Average Earnings you had under the ROM Pension Plan as of December 31, 2015), and the pensionable service that was credited to you under the ROM Pension Plan before January 1, 2016.

The  pension earned under the CAAT Pension Plan starting January 1, 2016 is calculated using the CAAT Pension Plan formula, your Highest Average Pensionable Earnings determined under the CAAT Plan (which cannot be less than the Best Average Earnings as of December 31, 2015), and the pensionable service earned on or after January 1, 2016.

Pensionable earnings and best/highest average pensionable earnings

Pensionable earnings as determined under the ROM Pension Plan will be recognized for years before the plan merger (effective January 1, 2016). Starting January 1, 2016, pensionable earnings are based on CAAT Plan provisions. To calculate your combined pension at any date after the merger, the higher of your Best Average Earnings under the ROM Pension Plan as of December 31, 2015 and the Highest Average Pensionable Earnings determined using the pensionable earnings recognized under both plans at the date of calculation will be used.

 

Definitions

  • BAE – Best Average Earnings. Used in the ROM Pension Plan pension calculation. The average of the highest 60 consecutive months of earnings prior to the Effective Date, which cannot be less than the frozen average of the highest 36 consecutive months before January 1, 2010.
  • HAPE – Highest Average Pensionable Earnings. Used in the CAAT Pension Plan pension calculation. After the Effective Date, the average of the highest 60 consecutive months of earnings, regardless of when they occurred. HAPE cannot be less than BAE.
  • AYMPE – Average Year’s Maximum Pensionable Earnings. The average of the YMPE in the year of retirement and the four preceding years.
  • Pensionable Earnings under the CAAT Plan: Includes basic salary plus certain other allowances and components, including shift premiums and lump-sum re-earnable merit pay (on which contributions are made), and excludes overtime pay and lump sum payments in settlement of vacation entitlements.
  • As of January 1, 2016, pensionable earnings are based on the CAAT Pension Plan definition. Your pension benefit will be calculated using the higher of your pensionable earnings under the ROM Pension Plan before January 1, 2016 and your best consecutive 60 months of earnings over your career.

When can I retire?

Your retirement dates are based on the CAAT Pension Plan provisions.

Retirement dates:

  • Normal retirement date: the end of the month the member turns age 65 (replacing the previous ROM Pension Plan normal retirement date of July 1 following age 65);
  • Early retirement date: members can retire on an early pension at the end of the month the member turns age 55, or as early as age 50 with 20 years of combined pensionable service.
  • Unreduced CAAT Pension Plan early retirement date: the end of the month the member reaches either of the CAAT Pension Plan unreduced early retirement date milestones (age 60 with 20 years of combined pensionable service, or age plus combined pensionable service equals 85).

What are my early retirement options?

If you start your pension before your normal retirement date, your pension earned under the ROM Pension Plan to December 31, 2015 will be reduced in accordance with the early retirement provisions applicable to the ROM Pension Plan and the pension earned under the CAAT Pension Plan starting January 1, 2016 will be reduced in accordance with the early retirement provisions applicable to the CAAT Pension Plan.

For the pension earned under the CAAT Pension Plan, the pension is unreduced if the member has earned an unreduced early retirement pension. Otherwise, the pension is reduced by 3% per year the member is away from the earliest of:

  • Normal retirement (age 65)
  • Age 60 and 20 years of pensionable service
  • Age plus pensionable service totals 85 years

Note that different rules apply to deferred pensions: If you terminate employment, but do not start your pension within 24 months of your termination date, and instead, take a deferred pension at a later date, the deferred pension is reduced by 5% per year you are away from age 65.

 

For the pension earned under the ROM Pension Plan, the pension is reduced if the member retires before age 65 based on:

Service on or after January 1, 2010

  • The reduction is 5% per year from age 65.

Service before January 1, 2010

  • If member retires at age 60 or older the reduction is: 2% per year the member is away from age 65
  • If the member retires before age 60, the reduction is: 5% per year from retirement age to age 60, and 2% per year from age 60 to age 65

In no event shall the early retirement reduction exceed the actuarial equivalent reduction.

Bridge benefit

If you start your pension payments before age 65, the CAAT Pension Plan also provides a bridge benefit, payable to age 65. The bridge benefit is calculated using your pensionable service earned under the CAAT Pension Plan only (i.e., service after earned on and after January 1, 2016). If the CAAT portion of your early retirement pension is reduced, the bridge benefit is reduced by the same factor.

The bridge benefit formula is 0.7% x HAPE up to AYMPE x pensionable service

There is no bridge benefit on the benefit you earned under the ROM Pension Plan.

What if I want to work past age 65?

In the CAAT Pension Plan, members continue to earn a pension in the plan as normal to the earlier of November 30 of the year in which you turn age 71 or termination of employment. There is no pensionable service limit.

Additional Benefits

Inflation Protection

Once you start receiving your pension payments, inflation protection increases will be applied to your total pension (earned in both plans, on all your pensionable service) using only the CAAT Pension Plan’s conditional inflation protection provisions. These provisions provide for annual inflation protection increases for pensions in pay whenever the CAAT Pension Plan’s funded status is over 100%.

Current active members in the ROM Pension Plan who terminate employment after January 1, 2016 will also be entitled to the conditional inflation protection provisions of the CAAT Pension Plan applicable from their date of termination of membership to the date their pension starts, but only on benefits earned under the CAAT Pension Plan after January 1, 2016.

You can learn more about the Plan’s inflation protection provisions here but note that ROM members receive conditional inflation protection on their entire pensions.

Annual inflation protection increases are 75% of the annual percentage increase in the Consumer Price Index (CPI).

Survivor Benefits

There are different survivor benefits for pre- and post-retirement death.

Details about survivor benefits

Pre-retirement survivor benefits

For your pension earned under the ROM Pension Plan, up to December 31, 2015, your pre-retirement survivor benefits are based on the provisions of the ROM Plan.

For this portion of your benefit, if you die before you retire, your survivor is entitled to a lump-sum value of the deferred pension for your service after December 31, 1986, and a refund of contributions plus interest for pensionable service before January 1, 1987.

For the pension you earn under the CAAT Pension Plan, on and after January 1, 2016, your pre-retirement survivor benefits are based on the provisions of the CAAT Plan.

For this portion of your benefit, if you die before you retire, your survivor is entitled to the lump-sum value of your deferred pension which can be paid as cash, or as a pension.

If you have no spouse, but have eligible children, the children receive a survivor benefit equal to 50% of your pension, paid to age 18.

For more information about the CAAT Plan’s pre-retirement survivor benefits, visit Survivor Benefits.

 

Post-retirement survivor benefits

For post-retirement survivor benefits, CAAT Plan provisions apply to the entire benefit (the portion earned under the ROM Pension Plan before January 1, 2016, and the portion earned in the CAAT Plan starting January 1, 2016) if you retire after January 1, 2016.

If a retired member has an eligible spouse at their date of death, 60% of the member’s pension continues to the spouse for the rest of his or her life.

An eligible spouse is the spouse at retirement if that spouse is still alive or a new spouse if the spouse at retirement died before the retired member.

In any event, 100% of the member’s lifetime pension is guaranteed for the first 60 months, which means that if the member and their spouse die before 60 pension payments have been made, the remaining amount is paid in a lump sum to beneficiaries.

Should the member die with no eligible spouse, but with eligible children (under age 18), those children will receive the 60% survivor pension, divided equally between them, paid to age 18 and re-divided as each turns 18.

Disability accrual

All members who begin disability leave on or after January 1, 2016 will receive disability accrual based on the CAAT Pension Plan rules. For details about the Plan’s disability accrual, please visit Disability and your pension.

Disability leave prior to 2016

For members who were on long-term disability on January 1, 2016, ROM Pension Plan rules apply until that date, and after that date, CAAT Pension Plan rules apply. For purposes of calculating both the ROM and CAAT plan pension amounts, members on long-term disability will have their deemed earnings increased at the same rate as pensions in pay are indexed for CAAT Pension Plan retirees on and after January 1, 2017.

What if I terminate employment before I’m ready to retire?

The CAAT Pension Plan has an automatic 24-month extension of membership (EOM) period after the last day worked. During this period, members who are retirement eligible may choose to retire and start their pension, or can choose to transfer the lump-sum value of their pension to the pension plan of their new employer (if permitted by the new employer). After the EOM period members would become deferred members and could choose to start their pension at any time once they are eligible to retire(see below for more information on deferred pensions).  After the EOM period, members also have additional portability options, such as a transfer of the value of their benefit to a locked-in RRSP (providing they are not eligible for early retirement) or transfer the value to the pension plan of their new employer. Note that a member’s pension entitlement is calculated using pensionable service and earnings as of the last day worked. The EOM provision applies to benefits earned under both the ROM Plan and the CAAT Pension Plan. For a more detailed explanation of the CAAT Plan’s portability options and applicable time restrictions, please see the page Leaving your job.

How do I start collecting my Deferred pension?

If you terminated employment on or after January 1, 2016, and are eligible to retire and wish to start your pension, please contact the CAAT Pension Plan directly.

You can email the CAAT Plan at rom@caatpension.on.ca, or call 416-673-4801 / 1-866-350-2228.

What are the options available?

For the portion of your pension earned in the CAAT Plan (on and after January 1, 2016):

The deferred lifetime pension is available from age 65, and is calculated based on earnings and pensionable service to the date of termination of employment. If you choose to start your deferred pension early (before age 65, and after age 55), that portion of your pension will be reduced by 5% for each year the member is away from the normal retirement date of age 65.

For the portion of your pension earned under the ROM Pension Plan (up to December 31, 2016):

If you choose to start your deferred pension early (before age 65 and after age 55), the pension will be reduced on an actuarially equivalent basis for pension benefits earned after January 1, 2010 and reduced on the same basis as an early retirement pension (see above) for pensionable service before January 1, 2010.

Accruing a pension above the Income Tax Act Maximum

The CAAT Pension Plan does not provide any benefits in excess of the Income Tax Act (ITA) maximum pension limits.