Could a pension purchase be right for you?

Your CAAT pension is an important part of your retirement income. Depending on your circumstances, you may be able to increase the monthly amount you receive. 

Curious how? Watch the video for your plan design for a quick introduction to purchases. Then read on for more details on your eligibility, what a purchase could mean for your pension and how to get started. 

Why consider a pension purchase?

Your CAAT pension is calculated using a formula, but you may be able to increase it by purchasing an eligible period when you were employed but not contributing to the Plan. Sometimes called a “buyback,” a purchase can provide more monthly income in retirement and may help you retire sooner depending on your circumstances.  

Along with increasing your monthly pension, a purchase can simplify your retirement planning by bringing more of your retirement savings together in one secure place. 

Once your purchase is complete, the additional amount becomes a permanent part of your CAAT pension. It includes the same features as the rest of your pension, such as conditional inflation protection after you retire and survivor benefits for your eligible spouse. 

Now that you know how valuable a purchase can be, it’s time to decide if a purchase is right for you. The purchase process has three stages for DBprime and DBplus – Learn, Return and Earn.

1. Learn: The first step to a purchase is learning if you’ve got an eligible employment period. Eligible employment periods can be broken down into two categories – 

• periods of employment before you enrolled in CAAT and 

• periods of leave when you were a member of CAAT. 

Periods of employment before you enrolled can include: 

• when you were working with a CAAT employer but hadn’t joined the Plan yet, or 

• when you were with another employer’s pension plan other than your current CAAT Plan (if your pension is still in your previous employer’s pension plan, you must transfer it out as a part of making a purchase in the CAAT Plan). 

On the other hand, periods of leave that happen while you’re a member of CAAT can include: 

• unpaid leaves of absence, 

• statutory leaves, including pregnancy, or parental leave, when you did not contribute to the plan. 

When you’ve determined you have an eligible period of purchase, the next step is to get an estimate of how much you can purchase. Use the purchase tools on the CAAT website to estimate the cost and how much pension your purchase could add. Then you can download and fill out the official purchase application form.

2. Return: When you’ve completed the form, the next step is to submit your application to CAAT. Requesting a purchase package does not commit you to completing the purchase. When CAAT sends your purchase package, you’ll have all the information you need to make your decision. All you need to do at this point is decide if you want to go ahead with your purchase – if your answer is yes, then you can go ahead and arrange for the funds to be transferred to CAAT. 

3. Earn: If you decide to proceed, just follow the instructions in your package to pay for the purchase or transfer the required funds to CAAT. After the funds have been transferred and the purchase is complete, CAAT will send you a confirmation letter. Your pension purchase is now part of your CAAT pension and provides additional reliable monthly income in retirement. 

Learn more about your purchase options and decide if a pension purchase is right for you here or attend our purchase webinars.