CAAT provides inflation protection enhancement for DBprime pensions earned before 1992
We’re pleased to provide an inflation protection enhancement for eligible pensions that include DBprime service earned before 1992. These questions and answers explain what the November 1, 2026 increase, announced here, may mean for you.
Questions and answers:
What is the Consumer Price Index, and how does CAAT use it?
The Consumer Price Index, or CPI, is a common measure of how the cost of everyday goods and services changes over time. CAAT uses a method that considers changes in CPI when determining inflation protection increases for deferred and monthly pensions, based on the rules that apply to the period when your pension was earned. For more information, see CAAT’s Inflation protection section.
Why does the timing of my pensionable service matter for inflation protection?
Different inflation protection rules apply depending on when your DBprime service was earned.
| Before 1992 | 1992 to 2007 | After 2007 |
|---|---|---|
| Ad hoc increases | Guaranteed increases | Conditional increases |
| Increases are granted on an ad hoc basis only if Plan funding allows. Your pension won't decrease if no increase is granted, and any past increases stay a permanent part of your pension. | Inflation protection increases are guaranteed and will be granted indefinitely. | Conditional inflation protection applies to the pension earned and increases are granted only if Plan funding allows. |
Am I eligible for the inflation protection enhancement?
Eligible members do not need to do anything. The increase will be applied automatically.
You may be eligible if all of the following apply:
- Your pension or survivor pension includes DBprime service earned before 1992.
- On November 1, 2026, you are receiving a monthly pension or are entitled to a deferred pension.
- Your pension was in pay or deferred at some point between January 1, 2014 and December 31, 2025.
What period does the inflation protection enhancement cover?
This is the first increase granted for pensions earned before 1992 since January 1, 2014.
If you are eligible, your increase reflects the cumulative inflation protection that would have been provided, if granted, for the period between January 1, 2014 and December 31, 2025.
The period used to calculate your increase may be shorter. For example, if your pension started or became deferred after January 1, 2014, your increase will reflect only the portion of the period during which your pension was in pay or deferred.
The starting date used to calculate your increase depends on your circumstances. It will be the later of January 1, 2014 and the applicable date below:
- Retired member: the date your pension became deferred or started, as applicable.
- Surviving spouse of a retired member: the date the retired member's pension started.
- Surviving spouse of a member who had not started their pension: the date your deferred or monthly survivor pension entitlement began.
- Deferred member: the date your pension became deferred.
When does the increase take effect?
If you are eligible and have a pension in pay, the increase will be reflected in your November 2026 pension payment. It will happen automatically, so you don't need to do anything.
If you have a deferred pension, the increase will be incorporated into your pension once it starts, subject to income tax limits. You’ll receive more information in your 2026 Annual Statement, available next spring.
How will I know my new pension amount?
If you're receiving a monthly pension, CIBC Mellon will send you a payment advice notice in late October showing your updated monthly amount.
What does the enhancement mean for my pension?
The enhancement will not affect every member in the same way. The examples below show how the enhancement could apply in different situations. These examples assume the member is entitled to a pension with CAAT on November 1, 2026, and that a portion of the pension was earned in DBprime.
| EXAMPLE 1 | EXAMPLE 2 | EXAMPLE 3 |
|---|---|---|
| Anton retired before 2014 | Maria retired July 1, 2023 | Priya retired April 1, 2026 |
All of Anton's pension was earned before 1992, and his pension started before 2014, so he receives the full enhancement for the period from January 1, 2014 to December 31, 2025. $1,000 → $1,241.75 per month Approximately a 24.18% increase | Maria joined CAAT in 1989. Her monthly pension for service before 1992 is $1,000. She started receiving her pension halfway through 2023 after retiring from active membership. As a result, the November 1, 2026 increase to her pension reflects inflation protection for half of 2023 and the full years of 2024 and 2025. Approximately a 5.4% increase | Priya joined CAAT in 2018 and all her service was earned after 1992. As a result, this enhancement does not apply to Priya’s pension. Her pension will continue to receive conditional inflation protection under the rules that apply to it on January 1, 2027. |
I have a deferred pension. What should I expect?
If you're eligible, the enhancement will be applied to your deferred pension automatically.
You won't receive the increase until your pension starts, subject to income tax limits. You'll also receive more information in your 2026 Annual Statement, available next spring.
What about my pension earned after 1991?
Nothing is changing. If your pension includes DBprime service earned after 1991, inflation protection will continue under the rules that already apply to that service.
Details about the January 1, 2027 inflation protection increase for eligible service earned after 1991 will be shared with members in December 2026.
Will there be future inflation protection increases for pensions earned before 1992?
The November 1, 2026 increase is a one-time enhancement for eligible pensions with DBprime service earned before 1992. Once applied, the increase becomes a permanent part of the pension.
However, this enhancement doesn't create ongoing guaranteed or conditional inflation protection for that service. Future ad hoc increases may continue to be considered under the Funding Policy, taking into account the Plan’s funded level and the long-term sustainability of the Plan.
CAAT has updated the Funding Policy to allow consideration of ad hoc inflation protection increases at Funding Level 5, in addition to Funding Level 6. For more information, see the Funding Policy.
Still have questions?
We're here to help. If you have questions about the enhancement or what it means for your pension, please contact us. Our Member Care team can help you understand how the enhancement applies to your situation.