Have you decided to start your deferred pension? Here’s what you’ll need to know.
What is a deferred pension?
Your deferred pension is the amount of pension you earned in the Plan during your active membership, up to the date you terminated your employment.
A deferred pension offers the flexibility to collect a secure lifetime pension from the CAAT Pension Plan, even if you left your job with a participating employer before you were eligible to retire.
Do you work part-time or on contract?
Visit the DBplus page to discover how DBplus maximizes the lifetime pensions of members who work part-time or on contract.
If you were a deferred member of the ROM Pension Plan on December 31, 2015, the provisions that apply to your pension may be different than those outlined on this page. Visit ROM Deferred members for details.
When can you start your deferred pension?
You can start your deferred pension between the ages of 55 and 65 (or as early as age 50 if you had 20 years of service when you terminated). To start your pension, contact the CAAT Pension Plan to let us know when you would like to start receiving your payments. Be sure to notify the Plan well in advance, to avoid any delays in starting your pension.
Starting your pension at age 65
Your pension will start on the first day of the month following your 65th birthday, and your pension will be unreduced. To ensure the timely delivery of your payments, be sure to submit your completed documentation well in advance. If, within the year of your 65th birthday we have not heard from you, we will contact you to get the process started.
Starting your pension before age 65
You can start your deferred pension at age 55. If you have 20 years or more of service in the Plan, you can start your deferred pension at age 50. If you start your deferred pension before you turn 65, your pension will be reduced by 5% for each year your early retirement precedes age 65. This reduction reflects that you will be collecting the pension for a longer period than a member who retires later.
In addition to your deferred pension, you will receive an additional payment called the bridge benefit until age 65. Your bridge benefit will be reduced by the same factor as your early retirement pension. Read more about early retirement and the bridge benefit here.
How to get started
To start collecting your pension, you will need to provide the CAAT Plan with the following documentation:
- Complete the Deferred Pension Claim form in its entirety and sign it.
- Complete and sign federal and provincial TD1 tax forms. These forms can be downloaded from the CRA website, or contact us for copies.
- Provide valid copies of proof of age for you and your spouse. Payments will not be made unless proof of age is provided.
Once we have received your completed forms and supporting documents, we will begin processing your pension. Your deferred pension starts receiving inflation protection increases, when they are granted, even before you start your pension.
Important note about proof of age
Acceptable proof of age includes any government issued identification (federal or provincial) that clearly shows the card holder’s date of birth, excluding health cards, (e.g. passport, birth certificate, citizenship card, driver’s license). Please note that payments will not be made unless proof of age is provided.
Once you start your pension
- Your pension will be paid on the first of each month for the rest of your life.
- If you start your deferred pension early, you will receive a bridge benefit, paid until you turn 65.
- Your pension will be increased due to inflation protection, when granted, based on the years during which you earned your service.
- Your spouse will receive a survivor pension for his or her life when you die.
Are you currently a deferred member? Be sure to stay in touch!
Even if you’re no longer an active member, and you're not yet ready to collect your deferred pension, it’s important that you stay informed of Plan news, and receive notifications about your pension plan.
Once you leave your employment:
- Keep us informed if you change your address or marital status. Download the Change of information - Member Update form and submit it to the Plan so that you will continue to receive correspondence.
- Sign up for My Pension NewsLink (or update your profile). Subscribe to NewsLink as a “Former Member (with a deferred pension)” to receive content that is relevant to you. Click here to sign up, or click the link at the bottom of your most recent NewsLink email to update your existing profile.