Retired Member Handbook: Page 2 of 6

Collecting a pension

You receive your monthly CAAT Plan pension for the rest of your life.

Your pension payments

image of woman smilingWhen you were planning to retire, you had to consider what would be the best retirement date and age for you. Your pension was calculated using the years of pensionable service you accumulated or purchased during your career in the Ontario College system, as well as your pensionable earnings during the five consecutive years when these earnings were highest.

Managing your pension payments

Pension payments begin in the month following your retirement. Pensions are paid by
convenient and secure direct deposit into your bank account on the first day of each month.
You will receive your monthly CAAT Plan pension for the rest of your life.

The transition from receiving bi-weekly or weekly employment earnings to a monthly pension
payment may take some getting used to. To help make the adjustment, we recommend
monitoring your accounts closely to keep track of the changes, and the timing of expenses
and deposits during the first few months before and after retirement.

Did you retire early?

The Plan does not specify a mandatory retirement age. Members can retire as early as age 50 (if they have 20 or more years of pensionable service), and as late as age 71.

Bridge benefit payment

The valuable early retirement provisions are among the many advantages of belonging to the CAAT Pension Plan. Every CAAT Plan retired member who retires before the age of 65 receives a temporary pension called a ‘bridge benefit’. This is an additional payment which is paid from the date of your early retirement until you turn 65.

The bridge benefit was originally designed to “bridge” your early pension income until you turned 65, and could begin collecting unreduced CPP payments. Even if you start your CPP pension at the earliest start date of age 60, your bridge benefit continues automatically, until age 65.

If you retire before 65, we calculate your lifetime pension and bridge benefit, and combine them to make your total monthly pension payment. Both your lifetime pension and bridge benefit are eligible for annual inflation protection, and may increase each year.

However unlike your lifetime pension payment, which you will receive for the rest of your life, your bridge benefit will stop when you turn 65. At that time, your bridge benefit, plus any inflation protection increases that were applied to it, will be removed from your monthly deposit.

You can start CPP any time after age 60, but it will be reduced if you start it before age 65. Remember, whether or not you choose to collect your CPP retirement pension early, you will continue to receive your bridge benefit from the CAAT Plan until you turn 65. At 65, you can begin collecting your OAS pension.

Turning 65

If you are receiving a bridge benefit, we’ll send you a reminder before you turn 65 to let you know that your bridge benefit is about to end and your lifetime pension will continue.

Receiving your pension abroad

If you spend the winter months in warmer climates, or have retired permanently outside of Canada, you will want to ensure your monthly pension will be delivered uninterrupted. In either case, your pension payment can continue to be deposited into your Canadian bank account. Most Canadian bank accounts are accessible around the globe. If you have any questions about fees, contact your financial institution.

If you relocate to another country permanently, keep in mind that the income tax deducted from your CAAT Pension and government pensions may be affected by your new country of residence. Canada Revenue Agency offers a variety of information that you should investigate before you leave.

No matter what country you live in, you will have no problems collecting your CAAT Plan benefit – your CAAT Plan pension gets paid to you wherever you go.

Next: Inflation Protection