Pension policies by jurisdiction

Discover how pension rules differ by jurisdiction.

Key definitions

Different provinces may have different minimum requirements, based on their pension legislation. The CAAT Plan provisions outlined on this site are based on the Ontario Pension Benefits Act. If you report to work in a province other than Ontario, check below to see what benefits may be impacted by different legislation.

 

Definition of spouse

For the applicable definition of spouse, please refer to the description under the province of your employment. Note that the definition of spouse that applies to the Federal jurisdiction also applies to the Northwest Territories, Nunavut and Yukon.

 

Definition of "small pension"

A small pension is one that falls below certain defined thresholds. If you are found to have a small pension at the time of payout, you will be entitled to a one-time lump sum payment of the commuted value of your defined benefit pension, instead of a monthly stream of lifetime payments.

You may have the option to keep your small pension with CAAT if:

  • You have a small defined benefit pension and a GROWTHplus balance; and,
  • Your jurisdiction of employment when you stopped working with your CAAT employer was Saskatchewan, Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, Prince Edward Island, Alberta, British Columbia, Quebec, or federal.

Different jurisdictions may have different minimum requirements, based on their pension legislation. The small pension rule that applies to your benefits is determined based on where you reported to work when you stopped working with your CAAT employer. Check below for the small pension thresholds that CAAT applies for each Canadian jurisdiction.

 

Jurisdictions

Choose the jurisdiction where you report to work to see the different minimum requirements that may apply to you.

Definition of spouse

  1. the person who, at the relevant time, was married to the member and has not been living separate and apart from the member for three or more consecutive years; or
  2. if there is no person to whom (1) applies, the person who immediately preceding the relevant time, had lived with that other person in a conjugal relationship
    1. for a continuous period of at least three years or,
    2. of some permanence, if there is a child of the relationship by birth or adoption.

Definition of small pension

The commuted value of the pension is less than or equal to 20% of the Year’s Maximum Pensionable Earnings in the calendar year that the commuted value was most recently determined.

Definition of spouse

  1. a person who is married to the member, and who was not living separate and apart from the member for more than two years immediately prior to the relevant time; or
  2. if (1) does not apply, a person who, at the relevant time, was living and cohabiting with the member in a marriage-like relationship for a period of at least two years immediately preceding the relevant time.

Definition of small pension

The commuted value of the pension is less than or equal to 20% of the Year’s Maximum Pensionable Earnings in the calendar year that the commuted value was most recently determined.

Definition of spouse

The person who is married to the member or who is party to a void marriage with the member; or “Common-law partner”: The person who is cohabiting with the member in a conjugal relationship at the relevant time, having so cohabited with the member for at least one year.

Definition of small pension

The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the calendar year that membership ends, or the member dies.

Definition of spouse

  1. a person who is married to the member; or
  2. with the member, registered a common-law relationship under the Vital Statistics Act; or has been cohabiting with him or her in a conjugal relationship:
    1. for a period of at least three years, if either of them is married; or
    2. for a period of at least one year, if neither of them is married.

Definition of small pension

The annual pension at the member’s normal retirement age is not more than 4% of the Year’s Maximum Pensionable Earnings in the year the benefit will be paid,

OR

The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the year the benefit will be paid.

Definition of spouse

  1. a person who is married to the member; or
  2. is married to the member by a marriage that is voidable and has not been annulled by a declaration of nullity; or
  3. in good faith, has gone through a form of marriage with the member that is void and who has cohabited with the member within the preceding year.

“Common-law partner”: a person who is not married to the member but has cohabited with him or her in a conjugal relationship continuously for a period of at least 2 years, immediately before the relevant time.

Definition of small pension

The adjusted commuted value is less than 40% of the Year’s Maximum Pensionable Earnings at the end of any applicable extension of membership period, as long as the member is under age 65.

The adjusted commuted value calculation takes into account the member’s age on December 31 of the year employment is terminated.

Definition of spouse

  1. the person who: is married to the member; or
  2. is married to the member by a marriage that is voidable and has not been annulled by a declaration of nullity; or
  3. in good faith, has gone through a form of marriage with the member that is void and who is cohabiting or has cohabited with the member within the preceding year.

“Cohabiting partner”: The person who is cohabiting or has cohabited with the member within the preceding year and has cohabited continuously with the member in a conjugal relationship for: (i) in relation to a member who has a spouse, at least three years, provided the person is not the spouse of the member; or (ii) in relation to a member who does not have a spouse, at least one year.

Definition of small pension

The annual pension is less than 4% of the Year’s Maximum Pensionable Earnings in the year plan membership ends, or the member dies

OR

The commuted value of the pension is less than 10% of the Year’s Maximum Pensionable Earnings in the year plan membership ends, or the member dies.

Definition of spouse

the person who is married to the member or

  1. is married to the member by a marriage that is voidable and has not been annulled by a declaration of nullity; or
  2. in good faith, has gone through a form of marriage with the member that is void and who is cohabiting or, if they have ceased to cohabit, has cohabited with you within the 12-month period immediately preceding the date of entitlement; or
  3. is a domestic partner within the meaning of Section 52 of the Vital Statistics Act; or
  4. is not married to the member, but cohabiting with him or her in a conjugal relationship for:
    1. a period of at least three years, if either of them is married; or
    2. a period of at least one year, if neither of them is married.

Definition of small pension

The annual pension at the member’s normal retirement date is not more than 4% of the Year’s Maximum Pensionable Earnings in the year the active membership ends

OR

The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the year in the year the active membership ends.

Definition of spouse

  1. a person who is married to you and is not living separate and apart from you; or
  2. a person who is not married to you and is living with you in a conjugal relationship:
    1. continuously for a period of not less than three years; or
    2. in a relationship of some permanence, if you are both the parents of a Child as set out in the Children’s Law Reform Act.

Definition of small pension

The annual pension at the member’s normal retirement date is not more than 4% of the Year’s Maximum Pensionable Earnings in the year the active membership ends

OR

The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the year the active membership ends.

Definition of spouse

  1. a person who is married to you and is not living separate and apart from you; or
  2. a person who is not married to you and is living with you in a conjugal relationship:
    1. continuously for a period of not less than three years; or
    2. in a relationship of some permanence, if you are both the parents of a Child as set out in the Children’s Law Reform Act.

Definition of small pension

Ontario rules apply

The annual pension at the member’s normal retirement date is not more than 4% of the Year’s Maximum Pensionable Earnings in the year active membership ends

OR

The commuted value of the pension is less than 20% of the Year’s Maximum Pensionable Earnings in the year active membership ends.

Definition of spouse

  1. a person who is married to or in a civil union with you;
  2. if you are not married or in a civil union, a person and who has been living in a conjugal relationship with you, for a period of not less than three years, or for a period of not less than one year if:
    1. at least one child is born, or to be born, of your union;
    2. you have adopted, jointly, at least one child while living together in a conjugal relationship; or
    3. one of you has adopted at least one child who is the child of the other, while living together in a conjugal relationship.

The birth or adoption of a child during a marriage, civil union or conjugal relationship prior to the current period of conjugal relationship may qualify the person as a spouse.

Definition of small pension

The commuted value of the pension is less than 20% of the Quebec Pension Plan Year’s Maximum Pensionable Earnings in the year the active membership ends.

Alternate payment options

If your jurisdiction of employment is Quebec, your pension includes some additional options you may choose. You must contact CAAT Pension Plan if any of these options apply to you and you want to select them.

10-year guarantee – chosen at retirement

You can choose a minimum payment guarantee of 10 years (120 months) instead of the CAAT default of 5 years (60 months).

  • You must make the choice when you retire.
  • Your pension will be actuarially reduced to pay for the 10-year guarantee.
  • The option and cost impact will be shown on your pension documents from CAAT Pension Plan when you retire.

Note: Your CAAT pension is paid for as long as you live. The guarantee is relevant if you die within 10 years of starting your pension.

Portability

You can transfer the commuted value of your pension out of the CAAT Pension Plan until you reach age 55.

  • You must have a deferred pension.
  • You can make the choice one time every five years on the anniversary of your last day of active membership.
  • Your last opportunity to choose the commuted value is 90 days before you turn age 55. After that, you will have a deferred pension only.

Alternate pension payment options

These options enable you to get some of your pension paid to you before you retire, if eligible. If you choose any of these options, your pension will be permanently lowered to reflect the amount of the alternate payment option.

Advance on retirement savings – Lump Sum

A lump sum cash payout of up to 40% of the year’s maximum pensionable earnings under the QPP.

  • You must be between age 55 and 65.
  • You are a member or surviving spouse with a deferred pension.
  • The amount can only be paid once per year, each year before you start to collect your pension.

Temporary pension payment

A temporary pension (annual total up to 40% of the year’s maximum pensionable earnings under the QPP), paid until you turn age 65.

  • You must be between age 55 and 65.
  • You are a member or surviving spouse with a deferred pension.
  • You cannot be receiving a temporary pension from another registered pension plan.

Phased retirement - advance lump sum with agreement

Replace part of your pension with a lump sum payment, while you are working.

  • You must be between age 55 and 65.
  • You must be working reduced hours based on an agreement with your employer.

Definition of spouse

  1. a person who is married to you; or
  2. if you are not married, a person with whom you are cohabiting as spouses and who has been cohabiting continuously with you as your spouse for at least one year.

Definition of small pension

The commuted value of the pension is less than or equal to 20% of the Year’s Maximum Pensionable Earnings in the year that the payment occurs

OR

If the member is eligible to start their pension immediately, the maximum annual pension is 4% (or less) of the Year’s Maximum Pensionable Earnings in the year the payment occurs.