|Guaranteed base||AIW enhancement||Total annual pension|
Understanding the output
The “Annual Pension” graph shows the estimated total annual pension
There are two parts to the total pension:
- Guaranteed base pension: This is the amount earned each year. It is calculated using the pension formula: APF x (member contributions + employer contributions)
- AIW enhancement: Your total pension increases each year you work, based on the Average Industrial Wage (AIW) index. The AIW enhancement is applied to the total pension you accrued to the end of the previous year. The AIW enhancement starts in year two of membership, and is cumulative. It is not applied in the year of retirement.
The “Value Comparison” graph illustrates the value of the pension earned in DBplus
This graph shows your total contributions compared to the cumulative value of your pension payments (the annual pension shown in the “Annual Pension” graph).
Your total annual pension is the guaranteed base pension, plus AIW enhancement while you were working. In retirement, your pension will increase with annual post-retirement inflation protection. In addition, your pension includes survivor benefits, payable to your surviving spouse for their lifetime. DBplus members see excellent value for their contributions.
Assumptions used in the “Value Comparison” graph:
- The DBplus Evaluation Tool assumes that you work up to retirement, and start your pension at age 65. Note that you can choose a different age in the “Calculation assumptions” panel.
- The DBplus Evaluation Tool assumes your pension is paid to age 90. However, your actual pension is paid for life, no matter how long you live: age 90 is shown for illustration purposes only.
- The DBplus Evaluation Tool assumes a survivor pension of 60% of the member's lifetime pension is paid for three years. However, the actual survivor pension would be paid to your eligible surviving spouse no matter how long they live.
How your pension is calculated
How to read this table
This table shows the total pension earned at the end of each year of membership. Each row shows information specific to the year in Column "A".
- Column “A”: The year in which the pension was earned.
- Column “B”: Your earnings for the year, on which your contributions are calculated.
- Column “C”: Your contributions for the year calculated as a percentage of the earnings in column “B”.
- Column “D”: The guaranteed base pension earned in the year.
- Column “E”: The AIW enhancement applicable for the total pension at the end of the year. It applies to the current year’s guaranteed base pension, and the total pension accrued to the end of the previous year (in column “F”, one line above). The AIW enhancement starts the year after the first year of membership).
- Column “F”: The total lifetime pension accrued at the end of the year. The value in column “F” is equal to: column “D” + column “E” + previous year’s column “F”.
- Your total lifetime pension at the end of any year is the amount in column “F”.
To see the total pension at retirement, refer to the last row in column “F”, which shows the annual pension on that retirement date. (Note that if you retire before age 65, the pension would receive an early start adjustment, to reflect the fact that you are receiving it for longer. The chart does not consider any reduction that could be applied.)
|A: Year||B: Earnings||C: Contributions||D: Guaranteed base pension earned in the year||E: Current AIW Enhancement (applicable to each year’s accrual)||F: Total pension accrued to the end of each year|
Projections, Assumptions, and Limitations
To calculate your estimated future pension, the DBplus Evaluation Tool makes projections based on the data you entered and the assumptions described in “Projections, Assumptions, and Limitations” under the “Help” menu. Results are not reviewed or verified by the CAAT Pension Plan or your employer.Your pension estimates are based on the DBplus pension formula, and the data you entered. They are not guarantees of future pension payments. For explanations and definitions, click the “Help” button.
|Year||Age||Annual Core||Current AIW||Total Current Benefit||Cumulative AIW||Cumulative Benefit|
|Year||Age||Year One Ben||Year One CPI||Annual CPI||Total Ben||Total CPI||Total Annual CPI|
|Year||Year One Annual Pay||Year one Annual Sur||Total Annual Pay||Total Annual Sur|