Your top 10 pension questions, answered

By Clara Yazbek

 

Welcome to Member Corner

You may know this space as Planner. As we've grown alongside our members, we felt it was time for a new name, one that better reflects what you’ll find here: practical guidance, helpful insights and answers to your pension questions.

We’re kicking things off with your questions.

Thank you to those who asked a question when registering for our recent Annual Performance Update. From retirement planning to inflation protection and survivor benefits and more, your questions highlight the topics that matter most to CAAT members.

Here are your top 10 questions. 

 

1. How much pension will I receive and how is it calculated?

Your CAAT pension provides you with retirement income for life, so it will never run out. The amount you receive is calculated using a formula based on the type of pension you have and your individual pension history.

If you're a DBprime member, your pension is based on your pensionable earnings and years of pensionable service. Learn more about how your DBprime pension is calculated in the DBprime Member Handbook.

 

If you're a DBplus member, your pension grows through contributions made by you and your employer throughout your career. Learn more about how your DBplus pension is calculated in the DBplus Member Handbook. 

Want to see what your future retirement income could look like? Sign in to My Pension to estimate your pension. If you joined CAAT through a merger, you can use the DBplus pension estimator.

 

2. When can I retire, and what are my options for early retirement?

As a CAAT member, you can choose to retire from as early as age 50, up to Nov. 30 of the year you turn 71. Deciding when to retire is one of the biggest financial decisions you'll make. There's no single "right" retirement age. What works best depends on your goals, finances, and plans for the years ahead.

Your retirement options depend on your age and plan. Whether you’re earning a pension in DBplus or DBprime, you can estimate what your pension will be well before retirement and you can plan with confidence.  

To learn more about your retirement options within your Plan design, read the Retirement Planning Guide. If you're looking for more guidance, attend a retirement planning session. You'll learn what to consider as you prepare for retirement and have the opportunity to ask questions along the way.

 

3. How is my pension protected from inflation?

Your pension includes conditional inflation protection, designed to help preserve its purchasing power over time. When granted, annual increases are based on 75% of the change in the Consumer Price Index (CPI) and once applied, they become a permanent part of your pension. Inflation protection increases are conditional on the Plan’s funded status.

Learn more about how inflation protection works.

 

4. What happens to my pension if I leave my employer, get laid off, or stop working?

Your pension remains yours, even if you leave your CAAT participating employer.

In most cases, you'll enter a 24-month membership extension period, giving you time to consider your options. Depending on your circumstances, you may be able to:

  • rejoin the Plan if you work for another CAAT employer,

  • transfer your pension to another eligible registered pension plan, or 

  • leave your pension in the Plan until you're ready to retire

  • if you're eligible, you can start your pension right away or delay it until as late as the end of the year you turn 71.

Learn more about your options when you leave your employer.

 

5. How can I see my contributions, my employer's contributions, and my pension information?

Your My Pension account is the best place to view your pension information. From there, you can access your annual statement, view your contributions, estimate your future pension, update your personal information, and use planning tools to explore different retirement scenarios.

Annual statements are different depending on whether you belong to DBprime or DBplus:

  • DBprime statements do not include employer contributions. The DBprime pension is based on a formula using salary and pensionable service, not by adding up contributions. While your employer does contribute on your behalf, your DBprime statement focuses on the benefit you’ve earned to date as calculated with the formula.

  • DBplus statements include your contributions and your employer’s contributions because a DBplus pension is based on a formula that uses total contributions to calculate the benefit. 

In both cases, all contributions are pooled to fund member pensions.

 

6. Are there other ways to grow my retirement income alongside my pension?

You may have opportunities to grow your future retirement income. Depending on your circumstances, you may be able to transfer eligible retirement savings into CAAT’s GROWTHplus Investment Account (GROWTHplus) or make a pension purchase to increase your future pension. 

Explore your options, including GROWTHplus and  pension purchases, to learn what may be available to you., to learn what may be available to you.

 

7. What survivor benefits are available for my spouse, children, or beneficiaries?

When you think about retirement planning, you may also be thinking about the people who matter most to you. Your CAAT pension includes survivor benefits that can help provide financial security for your eligible spouse, children, or beneficiaries. Understanding how these benefits work today can help you make informed decisions for the future.

Your pension includes a 180-month minimum payment guarantee, helping ensure the value of your pension continues to support your loved ones. This added protection is provided at no extra cost to you.

To learn more, read about the Plan's recent survivor benefits enhancements here, or register for a survivor benefits webinar to learn how your pension can help support your loved ones when you pass away.

 

8. How does GROWTHplus work, and how do I know if it’s right for me?

GROWTHplus is an optional savings account available to active, deferred and retired members. You can make deposits until the end of the year you turn 70 by transferring tax-sheltered savings from registered retirement vehicles, including RRSPs, RRIFs and RPPs. We understand that each member has different plans and needs for their financial future. Be sure to read our handbook and seek independent advice from a financial advisor before choosing to invest your money with GROWTHplus.

 

9. How does CAAT help protect my pension during economic uncertainty?

CAAT helps protect your pension through strong funding, diversified investments and disciplined risk management. With a 124% funded status and $6.7 billion in reserves, the Plan is built to withstand market volatility and economic uncertainty while continuing to deliver secure lifetime pensions today and over the long term. 

One of the advantages of a defined benefit pension is that you don't have to make ongoing investment decisions or manage market fluctuations yourself. Your pension is designed to provide secure lifetime income, helping reduce many of the financial uncertainties that retirees often face.

 

10. How is the Plan performing, and how are CAAT’s assets invested?

CAAT invests the Plan's assets using a long-term strategy designed to deliver strong, sustainable returns while protecting the Plan's financial health. The Plan currently has more than $25 billion in assets, and is 124% funded, meaning it has $1.24 for every dollar promised in pension payouts. Our investment program is designed to turn contributions from members and employers into predictable retirement income for life. 

If you'd like to learn more, explore our Annual Report for a closer look at the Plan's performance, stability, and the path ahead, or watch the Annual Performance Update to hear directly from CAAT’s leaders.

 

Still have questions?

Every member's situation is different, and sometimes you need advice that's specific to you. If you have questions about your pension or retirement options, our Member Care team is here to help.

Visit our Contact Us page to connect with us by phone or email.

 

We hope this helped you better understand your CAAT pension.

Coming next to Member Corner: We'll take a closer look at pension purchases and how they can help you make the most of your pension. Stay tuned!