CAAT Provides Inflation Protection Enhancement for DBprime Pensions Earned Before 1992

CAAT is providing an inflation protection enhancement to eligible retired and deferred members and surviving spouses whose pensions include DBprime service earned before 1992. The increase will take effect on November 1, 2026.

CAAT's strong financial position allows the Plan to continue delivering meaningful value to members while protecting long-term benefit security. We know that rising costs of living can affect the purchasing power of retirement income over time. This enhancement recognizes the impact of inflation on affected pensions and will help preserve their value.

For pensions earned before 1992, inflation protection increases may be considered only when the Plan's funded level allows. Given the Plan's strong financial position, the Plan Governors approved this enhancement for eligible pensions.

This is the first increase granted for pensions earned before 1992 since January 1, 2014.

A retired member, deferred member or surviving spouse may receive the enhancement if:

• they are receiving a pension or are entitled to a deferred pension on November 1, 2026;
• the pension includes DBprime service earned before 1992; and
• the pension was in pay or deferred between January 1, 2014, and December 31, 2025.

The enhancement reflects the cumulative inflation protection that would have been provided, if granted, for the period between January 1, 2014 to December 31, 2025. An individual’s increase may only apply for a portion of that period – for example if the pension started or was deferred after January 1, 2014.

For pensions already in pay, the increase will be reflected in the November 2026 payment and will become a permanent part of the ongoing monthly pension, rather than a one-time lump sum or retroactive payment.

For deferred pensions, the increase will apply once the pension starts, subject to income tax limits.

Pensions earned after 1991 continue to receive the inflation protection applicable to that service under the Plan. Details of the January 1, 2027 increase will be shared with members in December.

This enhancement builds on other recent Plan improvements for members, including improved survivor benefits, lower DBprime contribution rates and a higher DBplus annual pension factor.

Members with questions about this enhancement and how it may apply to them can see our Member Q&As or contact CAAT’s Member Care team.