DBplus Value Tool

This simple tool estimates the value of a pension in DBplus by the CAAT Pension Plan. With just a few pieces of information, get an estimate of the valuable lifetime retirement income you could earn in DBplus.

Need help? Click the “Help” button to learn more.

Get an estimate

Try the DBplus Value Tool if:

You are not currently a member of the CAAT Pension Plan.
Your employer is considering joining the CAAT Pension Plan, under the terms of DBplus.

How does it work?

You enter your birth date and earnings, and the tool projects your pension. The Value Tool shows your pension at age 65, and the amount of pension you would earn after only one year of membership.

You will see two numbers: the Guaranteed Base and the AIW Enhancement.

The Guaranteed Base is your pension based on your current income.
The AIW Enhancement estimates how much your pension would grow by the time you retire, based on growth in the average industrial wage (AIW) between now and then.

Once you've seen the Annual Pension, click the "Show the value of my pension" button to see the value of a lifetime of pension payments compared to your contributions.

You can also adjust some of the key assumptions, for example retirement date, to model different scenarios. The default contribution rate used by the DBplus Value Tool is 5% for both employer and employee contributions. Your group may use different rates. To adjust the contribution rates used in the calculation, select the “Contribution rate assumptions” bar on the results page, and enter an employer contribution rate between 1% and 17%, and an employee contribution rate between 1% and 9%. Note that the sum of the two contribution rates must be at least 2% and not more than 18%.

NEW: Get an estimate of the value of a purchase.

Click here to read the Terms of Use.

Terms of Use

The DBplus Value Tool was developed to illustrate the value of a DBplus lifetime pension. Results are based on information you provide, and are not reviewed or verified by the CAAT Pension Plan, or your employer.

The DBplus Value Tool allows users to adjust various assumptions related to your retirement, your employment, and to the DBplus plan itself, to test different retirement scenarios. It uses the data you enter to make projections into the future to arrive at retirement dates, approximate pension, contributions, and increases through indexation.

Other assumptions are built into the DBplus Value Tool based on the Plan's actuarial assumptions and/or Plan terms. You can learn more on our website.

Use of the DBplus Value Tool does not imply entitlement to a pension.

These estimates are not binding on the CAAT Pension Plan, or your employer.

The results from the DBplus Value Tool should not be considered financial advice.

IMPORTANT

The data you enter into the DBplus Value Tool is not saved or sent to the CAAT Pension Plan or your employer. You may print the result page for future reference.
In the CAAT Pension Plan, pensions are calculated as of the last day of the month prior to your retirement date.
Benefits payable under a registered pension plan, such as the CAAT Pension Plan are capped at the Income Tax Act (ITA) Maximum pension limit.
Use of the DBplus Value Tool does not imply entitlement to a pension.
Use of the DBplus Value Tool does not imply entitlement to a purchase under DBplus. If you were to make an actual purchase, please note that the amount that may be contributed is the lesser of 18% of applicable earnings (T4 earnings in respect of the period of time eligible for purchase under the Plan terms) and the amount available to transfer from a registered savings arrangement (RRSP or LIRA). The tool does not validate that the funds you input for the purposes of the purchase estimate are eligible for purchase.
You can learn more about the assumptions in the “Help” files.

Check the box to indicate that you have read and understood the Terms of Use then click "Start."

I agree

You must be between the ages of 16 and 70 to start the projection.

What is your date of birth? (Select year first, followed by month and day)

Will you use annual or weekly or hourly earnings?

Hourly
Weekly
Annual

Please enter your annual earnings.

What are your annual earnings?
(Do not enter decimals (e.g. 30000))

Please enter your weekly earnings.

What are your weekly earnings?
(Do not enter decimals (e.g. 30000))

Indicate how many weeks you work in year.

Enter the number of weeks you work per year. [1-52]

Please enter your hourly earnings.

What are your hourly earnings?
(e.g. 20.22)

Indicate how many hours you work in year.

You’ve entered more than 2080 hours per year. Pensionable hours may be capped.

Enter the number of hours you work per year. [1-4000]
(40 hours / week for 52 weeks a year is 2080.)

At Age
Year One Accrual

Enter required values to start projection

Click “Show the value of my pension” above to see the excellent value a pension from DBplus provides over your lifetime in retirement.

To see the assumptions used in the calculation, or adjust the contribution rate and other assumptions used, select the appropriate section in the “Calculation assumptions” panel.

All amounts shown are gross and do not reflect any income tax deductions.

Enter required values to start projection

Click “Show the value of my pension” above to see the excellent value a pension from DBplus provides over your lifetime in retirement.

To see the assumptions used in the calculation, or adjust the contribution rate and other assumptions used, select the appropriate section in the “Calculation assumptions” panel.

All amounts shown are gross and do not reflect any income tax deductions.

Projected to age NN

This is the amount that would be payable to you at the retirement date shown above, for life.

	Guaranteed base	AIW enhancement	Total annual pension
Lifetime pension	$NN,NNN	$NN,NNN	$NN,NNN
Purchase amount	$NN,NNN	$NN,NNN	$NN,NNN
TOTAL			$NN,NNN

Year one accrual

This is the amount of pension you would earn in one year of membership, plus cumulative Average Industrial Wage (AIW) enhancement increases up to your retirement date. Note that any purchase amount is not shown.

	Guaranteed base	AIW Enhancement	Total annual pension
Lifetime pension	$N,NNN	$N,NNN	$N,NNN

How your pension is calculated

How to read this table

This table shows the total pension earned at the end of each calendar year of membership. Each row shows information specific to the year in Column "A". The first year shown is the current year, or the year of enrolment if you entered a different date.

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 (including any purchase, if relevant) calculated as a percentage of the earnings in column “B”. Note that on line for the year NNNN, the contributions include your estimated purchase amount of $nn,nnn.
Column “D”: The guaranteed base pension earned in the year.
Column “E”: The AIW enhancement applicable for the total annual pension at the end of the year. It applies to the current year’s guaranteed base pension, and the total annual 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 annual 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 be reduced, 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 annual pension accrued to the end of each year
2018	$NN,NNN	$NN,NNN	$NN,NNN	$NN,NNN	$NN,NNN
2019	$NN,NNN	$NN,NNN	$NN,NNN	$NN,NNN	$NN,NNN

Understanding the output

Tabs

The DBplus Value Tool provides data in two tabs:

Lifetime pension at retirement age – this is based on the pension you would accrue at your normal retirement date (the end of the month you reach age 65). If you chose a different retirement date in the “Calculation Assumptions” panel, the graph uses that date instead. This tab will also show any purchase estimates you make.
Year one accrual – this is based on the pension you would accrue at your retirement date, based on one year of membership.

Graphs

The “Annual Pension” graph shows the estimated total annual pension.

There are two parts to the total annual pension:

Guaranteed base pension: This is the amount earned each year based on total contributions and the Annual Pension Factor ("APF"). It is calculated using the pension formula: APF x (member contributions + employer contributions).
AIW Enhancement: Your total annual pension increases each year you work, based on the Average Industrial Wage (AIW) index. The AIW Enhancement is applied to the total annual 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 Value 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 Value 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 Value Tool assumes a survivor pension is paid until the third December following the assumed death of the member at age 90. However, the actual survivor pension would be paid to your eligible surviving spouse no matter how long they live.

Purchases

If you enter a purchase amount in the "Calculation assumptions" panel, you can see the resulting pension in the "Annual pension" graph, and the impact to the value of your pension in the "Value Comparison" graph. To see the impact of the purchase on your lifetime pension, make sure both the "Show purchase" and the "Show lifetime pension" toggles are switched to "ON".

Assumptions Used

Data you entered

Date of birth: YYYY-MM-DD

[Weekly][Annual] Earnings: $NN,NNN

Number of weeks worked per year: [NN]

Number of hours worked per year: [NN]

Retirement assumptions

Retirement age: NN

Spouse: Yes/No

Employment assumptions

Enrolment date: YYYY-MM-DD

Earnings increase: NN%

Contribution rate assumptions

Employer contribution rate: NN%

Employee contribution rate: NN%

Note, the contribution rate would be set by your employer upon joining DBplus.

Pension Plan assumptions

Early start adjustment: NN%

This rate can only be determined at your retirement date, and will depend on the Plan's funded status and the Plan terms in effect at retirement.

AIW Enhancement rate: NN%

This rate would be based on the actual yearly increase to Canada’s Average Industrial Wage and the granting of enhancements is dependent on the Plan’s funded status.

Annual pension factor: NN%

This rate is currently set at 8.5% but the rate applied to future contributions will depend on the Plan's funded status and Plan terms in effect at the time the contributions are made.

Post-retirement Inflation Protection: NN%

This rate would be based on the increase to Canada’s Consumer Price Index, and increases are conditional on the Plan's funded status.

Purchase

Purchase amount: $NN,NNN

Date of purchase: YYYY-MMM-DD

Purchase adjustment factor: NN%

This amount depends on your years from normal retirement at the date of the purchase. If you make your purchase when you are more than 25 years from your normal retirement date the adjustment factor is 100%, i.e. the purchased benefit is equal to the applicable Annual Pension Factor, multiplied by the purchase amount. If you are less than 25 years from your normal retirement date, the 100% adjustment is decreased by 1.4% per year, calculated on a day-by-day basis, reducing the purchased benefit.

Projections, Assumptions, and Limitations

To calculate your estimated future pension, the DBplus Value 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 (including any purchase 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.

All amounts shown are gross and do not reflect any income tax deductions.

The estimator does not validate that the funds you input for the purposes of the purchase estimate are eligible for purchase.

Amounts are rounded to the nearest dollar.

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