Your pension is good value
The CAAT Pension Plan is proud of the progress we have made and the focus we have to ensure your retirement security. By now you may be aware that the Plan is 110% funded (which means that for every dollar promised to you there is $1.10 dedicated to stand behind it), but did you also know that the average retired member can expect to get 800% of their contributions back in pension payments over their lifetime?
How does the average retired member achieve 800%?
- In the CAAT Pension Plan, the average retired member in 2015 had 22 years of service in the Plan and retired at age 62.
- The average member is expected to live to age 90.
- The average member will spend nearly 28 years in retirement and receive 12 payments in a year, for a total of more than 330 payments – a pension payment every month for life. Members of the CAAT Plan tend to live longer than the average Canadian, but no matter how long you live, you will always receive a pension.
- After five years in retirement, the average retired member’s pension payments will have exceeded their contributions. After 28 years in retirement, pension payments will total approximately 8 times the contributions they made.
- Contribution rates are set so that, along with returns from prudent investing, they fund the benefits members earn. For every $1.00 of pension paid to you, more than 75 cents comes from investment income and the remaining comes from equal member and employer contributions.
- The impact of inflation is partially offset through the Plan’s inflation protection features, meaning pension payments can increase over time. Inflation protection can add value to the average member’s pension beyond 800%.
- Membership in the CAAT Plan includes valuable survivor benefits: If you die after retirement, your eligible spouse receives a monthly pension benefit equal to 60% of your monthly pension for the rest of their life. In the CAAT Plan, your spouse gets a survivor pension even if you were married after your retirement date. These features add value beyond the 800%.
- If you retire before age 65, you receive an additional temporary bridge benefit. If you retire early, like our average member, the bridge benefit is added to your monthly pension from the time you retire until you turn 65.
As a member of the CAAT Pension Plan, you are earning a lifetime of pension payments based on your earnings and service. Your contributions are only part of the story: your pension includes valuable survivor benefits, inflation protection features, and flexible early retirement options. These options work together to help you retire with confidence.